Everyone has heard of how Bitcoin and other cryptocurrencies made millionaires the ones who bought it a year ago. Not only is it possible to earn 1,000% or more in return, they are commonplace in many such cryptocurrencies. If someone bought Bitcoin for less than $500 in May 2016, his earnings would reach 1400% in about 17 months. Then in the past few days, we have seen Bitcoin lose nearly $1,000, so it would be an understatement to say that these cryptocurrencies are volatile.
Since the advent of Bitcoin in 2008, Trend Micro has been skeptical of the viability of cryptocurrencies because they pose a very obvious threat to governments that want to view all transactions and tax them. However, although we may still be cautious about actual cryptocurrencies, we are well aware of the potential of the underlying technologies that support these electronic currencies. In fact, we believe that this technology will cause major damage to the way data is managed, and it will affect all areas of the global economy, just like the Internet’s impact on the media.
Here are some questions and answers to help us get started…
Q: What is cryptocurrency?
The most famous cryptocurrency (CC) is Bitcoin. It is the first CC, which started in 2008. Today, there are more than 800 CCs such as Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, etc., all of which are “virtual”. There are no “physical” coins or currencies.
Q: How does CC work?
CC is a virtual currency that exists in a very large distributed database. These databases use BLOCKCHAIN technology. Since each blockchain database is widely distributed, it is considered not to be attacked by hackers because there is no centralized point of attack, and every transaction is visible to everyone on the network. Each CC has a group of administrators who verify transactions, usually called “miners”. A CC called Ethereum uses “smart contracts” to verify transactions. Encryption trends will provide more detailed information in upcoming news publications.
Q: What is a blockchain?
Blockchain is the technology that supports all CCs. Every transaction of buying, selling or exchanging CC enters a BLOCK, which is added to the chain. The technology is very complicated and will not be repeated here, but it has the potential to revolutionize the financial services industry because transactions can be executed quickly and easily, thereby reducing or eliminating costs. The technology is also being studied for applications in many other industries.
Q: Is CC Exchange regulated by the government?
In most cases, the answer is no. For some users, this is a major attraction of the market. It is now the “Wild West”, but the governments of most developed countries are studying this market to determine which regulations may be required. A major decision is whether to treat CC as a currency or a commodity/security. So far, Canada and the United States have declared the legality of CC, but the situation in terms of reporting and taxation is still unstable. Encryption trends will follow and report on these developments.
Q: How can I invest in this market?
You can use the services of a specialized “exchange” acting as a broker to buy, sell and exchange CC. First, choose an exchange, set up an account, and then transfer fiat currency to your account. Then you can place an order and buy CC. There are many exchanges all over the world. Opening an account is very simple, and these exchanges all have their own initial funds and withdrawal rules.
Encryption trend Will recommend CC Exchange in the future.
Q: Where should I keep CC?
To be able to move cryptocurrency freely and pay bills, you will need a digital wallet. These wallets come in several formats, such as desktop, cloud-based, hardware (USB), mobile phone and paper. Many of them are free, but security is an important factor because no one wants to lose their wallet or be stolen. The encryption trend will recommend digital wallets in the future.
Q: How do I use CC?
In addition to investing in CC products, you can also use cryptocurrency for certain financial transactions, such as remittances and bill payment. The list of companies that accept cryptocurrencies is growing rapidly, including major companies such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.
Q: What is the next step?
At the beginning, we will keep each Crypto TREND article short and narrow the scope as much as possible. As we mentioned earlier, we believe that cryptocurrency technology will change the rules of the game, and such potential investment opportunities will appear once or twice in a lifetime. There is no doubt that the early investment in the industry will only be used for your most speculative funds, and you can afford to lose funds.
Even if you don’t want to invest at this time, an early understanding of this new disruptive technology will put you in a good position to profit from our advice as we move forward.
When we start the first step of this journey, we hope to see more news and specific suggestions about Crypto TREND. This is a turbulent market and may not attract all investors, but if you are ready, Crypto TREND will be your guide.