Is Bitcoin Gathering Over? Active Trading for Those Who Wager On Tether

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The inflow of institutional cash is delayed by all accounts, and the purchase of Bitcoin is currently only an inflow of USDT tokens.

The days of energetic buyers maximizing their recharge cards to buy Bitcoin may be over. Indeed, even the Korean market has been cold. In any case, the exchange proceeds-this time, saved by Tether (USDT) resources. At first glance, the value level of Bitcoin is exciting, at $6,743.53. Although altcoins declined, Bitcoin maintained its position, and its value strength expanded again to 43.2% of the total market value of all coins and tokens.

In any case, the purpose of this may be to enrich the tokens. Starting in mid-2017, printing USDT has been in harmony with the rapid development of Bitcoin. Because of this, so far, every injection of USDT will cause excitement to buy through all other possible ways. At present, newcomers are either watching bystanders, or most people have lost the expectation of faster addition of cryptocurrency. Even so, for loyal brokers, using USDT is another source of income.

Although the actual transaction volume exceeds 2.7 billion U.S. dollars, not everyone has found their way into BTC transactions. Not long ago, the quotation of USDT on the BTC exchange was close to or below 20%, and the Japanese yen, US dollar, Korean won and some other currency standards were stable. Despite this, the photos have changed rapidly now, so it took a few days to complete the process.

As the information from CryptoCompare indicates, due to the huge quotes from Bitfinex exchanges, more than 54% of all BTC exchanges are Tether transactions. It seems that the crypto market has entered the inward phase of all transactions, and the next few years may see costs change only based on the activities of crypto insiders, rather than institutional brokers who are accustomed to the field of funds.

Half a month ago, Tether entered a bunch of altcoins-now, it seems that the wave picker has been transferred to Bitcoin. Although no matter how you look at it, this will definitely come at a price, but it also means that it is actually troublesome for new bitcoin buyers to provide the benefits of fiat currency again, and they may end up using USDT instead. Coin-This can be said in principle, it is taken back for money, but the process is moderate and will be punished by value.

At the same time, the supply contract for TrueUSD (TUSD) cryptocurrency resources has dropped from 88 million to 81 million tokens. It seems that the tokens have been singulated and converted into currency. For TUSD, reverse trading should be simpler-but it also means a massive influx of assets in the digital market.

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How to Trade Cryptocurrencies – The Basics of Investing in Digital Currencies

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Whether it is the idea of ​​cryptocurrency itself or the diversification of its investment portfolio, people from all walks of life are investing in digital currency. If you are new to this concept and want to know what is going on, here are some basic concepts and precautions for cryptocurrency investment.

What are the available cryptocurrencies and how can I buy them?

Bitcoin has a market value of approximately US$278 billion and is the most mature cryptocurrency. Ethereum ranks second, with a market value of more than $74 billion. In addition to these two currencies, there are many other options including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).

As the first to enter the market, there are many exchanges in the world that trade Bitcoin. BitStamp and Coinbase are two well-known American exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies with Bitcoin, you can find all digital currencies in a cryptocurrency market. The following is a list of exchanges based on their 24-hour trading volume.

What options do I have to save money?

Another important consideration is the storage of coins. Of course, one option is to store them in the exchange where they were purchased. However, you must be careful when choosing an exchange. The popularity of digital currencies has led to the emergence of many new, unknown exchanges everywhere. Take the time to do your due diligence so that you can avoid scammers.

Another option for cryptocurrencies is that you can store them yourself. One of the safest options for storing a wallet is a hardware wallet. Companies like Ledger also allow you to store Bitcoin and several other digital currencies.

What is the market like and how can I understand it?

The cryptocurrency market is very volatile. The volatility of the market makes it more suitable for long-term development.

There are many news sites established to report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are many Twitter accounts that post tweets about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital currency aims to disrupt traditional currency and commodity markets. Although these currencies still have a long way to go, the success of Bitcoin and Ethereum proves that there is a real interest in the concept. Understanding the basics of cryptocurrency investment will help you move in the right direction.

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Is Cryptocurrency the Future of Money?

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What will the future of money look like? Imagine walking into a restaurant and looking up at the digital menu board of your favorite combination meal. Only, instead of its price of $8.99, it shows up as .009 BTC.

Can cryptocurrency really become the future of money? The answer to this question depends on the overall consensus of several key decisions ranging from ease of use to security and regulations.

Let’s examine the two sides of (digital) coins and compare and contrast traditional fiat currencies with cryptocurrencies.

The first and most important component is trust.

People must trust the currency they use. What gives the dollar its value? Is it gold? No, the U.S. dollar has not been backed by gold since the 1970s. So, what gives the dollar (or any other legal tender) value? The currencies of some countries are considered more stable than others. In the final analysis, people’s trust is that the government that issued this money firmly supports it and fundamentally guarantees its “value.”

Since Bitcoin is decentralized, how does trust work with Bitcoin, which means that Bitcoin is not the governing body for issuing coins? Bitcoin is on the blockchain, which is basically an online accounting ledger that allows the world to view every transaction. Each of these transactions is verified by miners (people who operate computers on a peer-to-peer network) to prevent fraud and ensure that there is no double spending. In exchange for their services to maintain the integrity of the blockchain, miners were paid for every transaction they verified. Since there are countless miners trying to make money, everyone will check each other’s work for errors. This proof-of-work process is why the blockchain has never been hacked. In essence, this trust is what gives Bitcoin value.

Next, let’s look at the friend who trusts the closest relationship, security.

What should I do if my bank is robbed or there is fraudulent activity on my credit card? My deposit in the bank is underwritten by FDIC insurance. It is very likely that my bank will also withdraw any charges on the credit card that I have never paid. This does not mean that criminals will not be able to obtain stunts that are at least frustrating and time-consuming. Knowing that I am likely to become complete by any misconduct against me is more or less peace of mind.

In cryptocurrency, there are many options for storing funds. It is imperative to know if you are insured for your transactions. There are well-known exchanges, such as Binance and Coinbase, which provide customers with a good track record of correcting mistakes. Just as there are not many reputable banks in the world, so are cryptocurrencies.

What if I throw a twenty-dollar bill into the fire? The same is true for encryption. If my login credentials are lost to a digital wallet or exchange, then I will not be able to access those coins. Again, I cannot emphasize the importance of doing business with well-known companies.

The next issue is expansion. Currently, this may be the biggest obstacle preventing people from making more transactions on the blockchain. When it comes to transaction speed, fiat currencies move much faster than cryptocurrencies. Visa can process approximately 40,000 transactions per second. Under normal circumstances, the blockchain can only process about 10 per second. However, a new agreement is being developed that will cause a surge in transactions of up to 60,000 transactions per second. Known as the Lightning Network, it could lead to making cryptocurrencies the money of the future.

If you don’t talk about convenience, the dialogue will be incomplete. Do people usually like traditional banking and spending methods? For those who like cash, it is obviously easy to use most of the time. If you want to book a hotel room or rent a car, you need a credit card. Personally, I use credit cards everywhere because of convenience, safety and rewards.

Do you know that there are companies in the cryptocurrency field that also provide all these functions? Monaco is now issuing Visa logo cards, which will automatically convert digital currency to local currency for you.

If you have ever tried to send money to someone, then you know that the process can be tedious and costly. Blockchain transactions allow users to send cryptocurrency to anyone in just a few minutes, no matter where they are. It is much cheaper and safer than sending bank wire transfers.

There are other modern methods of transferring funds in both worlds. Take apps such as Zelle, Venmo, and Messenger Pay as examples. These apps are used by millions of millennials every day. Did you know that they also started to merge cryptocurrencies?

The Square Cash app now includes Bitcoin, and CEO Jack Dorsey said: “For us, Bitcoin has not stopped buying and selling. We believe this is a transformative technology for our industry. , We hope to learn as soon as possible.”

He added: “Bitcoin provides an opportunity to make the financial system accessible to more people.”

Obviously, fiat currency spending still dominates the way most of us transfer money, and the fledgling encryption system is rapidly spreading. The evidence is everywhere. Before 2017, it was difficult to find mainstream media coverage. Now, almost every major business news media reports on Bitcoin. From “Forbes” to Fidelity, they are all involved.

What is my opinion? Perhaps the biggest reason for Bitcoin’s success is that it is fair, inclusive, and provides financial access to more people around the world. Banks and large institutions see it as a threat to their existence. They will stand at the end of the failure of the largest transfer of wealth in the history of the world.

Still undecided? Ask yourself a question: “Do people trust the government and banks more or less every day?”

Your answer to this question may be a factor that determines the future of currency.

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Ways to Invest for Capital Gains

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6 ways to make money

There are basically two types of investment income. Capital gains and investment gains.

Investment income is the income you get from assets, and examples of investment income are savings interest, property rentals, and stock dividends.

Capital gains are the appreciation of assets; examples of capital gains are the appreciation of property, shares, and other assets.

Some investments provide capital gains but no income. Examples include precious metals such as gold, bitcoin, antiques and other collectible items.

The following are investments that provide capital gains:

Stock market

The stock market provides an excellent opportunity for capital appreciation. For most people, direct investment in the market is not feasible because it is not worthwhile to charge transaction fees once stocks are bought and sold. However, there are many managed funds that investors with limited management can participate in. New Zealand is one. Investors can invest funds into the market through Sharesies, and can choose to invest in various funds or individual companies. Other similar types of platforms in New Zealand include Investnow, Kernelwealth and Hatch. These are not unique.

Your retirement plan is invested in custodians (mutual funds), which are also a form of capital gains. In New Zealand, joining Kiwisaver is effortless. Kiwisaver is New Zealand’s retirement plan.

property

For many investors, the real estate market has been a popular “captain profit” tool, not only using their money, but also using other people’s money in the form of loans. The income is derived from the rent used to pay the mortgage. All related costs are the most popular form of capital gains and the easiest way for novice investors to get involved in the market and learn on the go, because there are several mutual funds available and start-up costs are extremely low. In New Zealand, Sharesies can be entered for only $1, which gives you the opportunity to invest in managed funds or individual companies. This is a good way to exempt taxes. This type of investment may turn into an ust, such as willful tenants. If you are ready to take risks, then this investment may be suitable.

If you plan to sell your home at some point, then your own home can be a good source of capital gains.

Another way to enter the real estate ladder is to buy shares of real estate investment companies in the stock market. This can be done by investing in individual companies or in managed funds that invest in real estate.

Compound interest

You must have heard of compound interest; that is, when you invest in a fixed-term account, you will get x% interest. Instead of depositing your interest payment into your bank account, you can add it to your principal to earn interest from the principal and previous interest. This is called compound interest.

The increase in your capital is called “capital gains.”

The current (2020) interest rate is very low; in some cases it is lower than the inflation rate, which makes this investment less attractive. Therefore, please do your due diligence and do not be tempted by certain financial companies that offer higher than normal interest rates, because higher interest rates bring higher risks. These financial companies that offer higher interest rates provide loans to riskier borrowers.

I am not saying that you should not invest your money in these companies, but should conduct due diligence, at least diversify your investment portfolio, rather than invest all your life savings in one company.

Gold

This is purely speculative, but it can deal with market downturns well. One disadvantage of gold is that it has found a place to store it. Another way to invest in gold is to buy gold stocks in the stock market. Buying gold coins from auction sites (e.g. eBay and Trademe) is another option. As with other investments, you need to do homework and read all about gold and other precious metals.

Cryptocurrency

Cryptocurrencies such as Bitcoin should be considered as speculative investments, so only invest money in them if you can afford to lose. What I mean is to use your arbitrary income to buy cryptocurrency. This type of investment may be a roller coaster, but a useful recommendation is to not only buy all cryptocurrencies in one transaction, but also to invest once a week, every two weeks, or every month so that you have the opportunity to buy when the currency is low . This is called averaging.

Collectibles/Antiques

When you plan to sell, investing in collectibles can bring you satisfaction and a sense of profit. When buying and selling antiques, you really have to know your own things. Always remember that only what others are prepared to give is worth it. If someone is willing to pay $1,000 for a painting in the auction, it is worth it, but if another painting is auctioned for only $10 in the auction, it is worth it. The value of things is only insights.

Recently (2020), some of Banksy’s paintings were sold in New Zealand for more than US$100,000. The seller of these paintings paid a total of US$500 for these paintings in London (UK) a few years ago. It just illustrates how bargaining can make a profit.

For smaller items, such as stamps, banknotes, beer labels, etc., collectors can list their copies on the auction website to help their hobbies.

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Practical Tips on How to Trade Cryptocurrencies

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For some time, I have been closely observing the performance of cryptocurrencies to understand the direction of the market. The routine that my elementary school teacher taught me is that you wake up, pray, brush your teeth and eat breakfast, you start to wake up, pray and then enter the network (starting with coinmarketcap) just to know which cryptocurrencies are contained in it assets. This red.

For altcoins and related assets, the beginning of 2018 is not a good choice. Bankers often think that the crypto bubble is about to burst, which hurts their performance. Despite this, ardent cryptocurrency followers are still “persisting in,” and to be honest, they are making a fortune.

Recently, Bitcoin retreated to nearly $5,000. Bitcoin Cash was close to $500, while Ethereum calmed down at a price of $300. Almost every coin has been welcomed by novices, who are still in the excitement stage. At the time of writing, Bitcoin is back on track, and its price is $8,900. Since the beginning of the uptrend, many other cryptocurrencies have doubled and their market value has fallen from a recent peak of $250 billion to $400 billion.

If you are slowly adapting to cryptocurrency and want to become a successful trader, the following tips will help you.

Practical tips on how to trade cryptocurrencies

• Moderate start

You have heard that cryptocurrency prices are skyrocketing. You may also have received the message that this upward trend may not last long. Some opponents, mostly respected bankers and economists, often refer to it as a get rich quick plan without a stable foundation.

Such news will make you eager to invest and become uncontrollable. A small amount of analysis of market trends and valuable currencies can guarantee you a good return. No matter what you do, don’t put all your hard-earned money into these assets.

• Understand how communication works

Recently, I saw a friend of mine posted a Facebook feed of one of his friends on Facebook. He continued to trade on the exchange, and he didn’t know how it worked. This is a dangerous move. Before registering or at least before starting a transaction, always check the website you intend to use. If they provide a virtual account for you to play with, please take this opportunity to understand what the dashboard looks like.

• Don’t insist on trading everything

There are more than 1,400 cryptocurrencies that can be traded, but it is impossible to handle all of them. Spreading your investment portfolio into a large number of cryptocurrencies that you cannot effectively manage will minimize your profits. Just select some of them, read more about them, and how to get their trading signals.

•stay awake

Cryptocurrency is volatile. This is both their bane and a gift. As a trader, you must understand that crazy price fluctuations are inevitable. The uncertainty of when to act makes traders ineffective. Use hard data and other research methods to determine when to trade.

Successful traders belong to various online forums where cryptocurrency discussions about market trends and signals are discussed. Of course, your knowledge may be sufficient, but you need to rely on other traders to obtain more relevant data.

• Diversify meaningfully

Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies that have real-world uses. You can use some coins with coins to make money quickly, but the best cryptocurrency is one that can solve existing problems. Coins with practical uses are less volatile.

Don’t diversify too early or too late. And before you start buying any crypto asset, make sure you know its market value, price changes, and daily trading volume. Maintaining a healthy investment portfolio is the way to get rich returns from these digital assets.

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Tips for Avoiding the Common Errors That the New Bitcoin Traders Make

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Investors from all over the world are trying to profit in the turbulent foreign exchange market by trading with the cryptocurrency Bitcoin. Well, it is very easy to start online trading, but it is important for you to know that there are some risks that you cannot ignore.

Like any speculative or trading market, Bitcoin trading is also a risky adventure, which can cost you a lot of money, especially if you do not do well. Therefore, it is very important for you to understand the risks involved before deciding to start using it.

If you are a novice and are interested in trading with Bitcoin, then you first need to understand the basics of trading and investing.

Avoid common mistakes that novices usually make

Invest wisely

Any form of financial investment may bring losses, not profits. Similarly, in the highly volatile Bitcoin market, you can expect profits and losses. It’s all about making the right decision at the right time.

Most beginners tend to suffer from bad decisions that are usually made by greed and poor analytical skills. Experts say that if you are not prepared to lose money, don’t risk trading. Basically, this method can help you deal with the worst psychologically.

Diversified investment portfolio

First, successful traders diversified their investment portfolios. If most of your funds are allocated to a single asset, your risk exposure will increase. It is difficult for you to make up for the loss of other assets. You cannot lose more money than your investment, so please avoid spending more money on limited assets. It will help you maintain negative transactions to a certain extent.

Secondly, investing more cash than you can afford will also cast a shadow over your wise decision-making ability. In most cases, when the market drops slightly, you will be forced to choose “Desperate Sell”. Investors who have overinvested in the transaction will definitely panic and not maintain it through the market decline. People will feel an urge to sell their shares at a lower price to reduce losses.

When the market recovers, you will also lose more cash. This is because you will have to buy the same reserve price, but the price is higher.

Set goals-emotions make you blind

When trading Bitcoin, it is important to set goals for each transaction. It can help you keep a cool head even in extremely changeable situations. Therefore, you need to first determine the price to stop loss.

The same rules apply to profits, especially when you let greed take over. The benefit of setting goals is that you can easily prevent decisions based on emotions.

Instead, you should strive to improve your skills in reading charts and conducting market analysis. It is also recommended that new traders close their losing positions within 24 hours to avoid paying recurring interest.

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4 Benefits That You Can Enjoy If You Invest in Bitcoin

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Bitcoin is a digital currency based on a peer-to-peer network. It was launched in 2009. What makes this type of currency different from the universal currency used is that it is not centralized or dependent on any bank or government agency. However, Bitcoin offers many benefits. For example, it has lower transaction fees compared to traditional payment mechanisms. Let’s take a look at the 4 benefits you can enjoy if you invest in Bitcoin. Keep reading to learn more.

multiple uses

Initially, users of Bitcoin used the currency to perform daily financial transactions without having to pay a lot of fees. Since then, the currency has been used for many other purposes.

In fact, Bitcoin uses blockchain technology to facilitate digital transactions. Therefore, all transactions must first be verified. In addition, all transactions can be viewed online through the database available on the blockchain site.

In addition, Bitcoin can also be used to conduct digital securities transactions in the form of land ownership, insurance claims, etc. However, it is important to remember that these uses are still under development. Therefore, they have not yet become mainstream.

However, the currency has been quite successful. Therefore, it has brought a revolution to the entire industry. According to many researchers, the value of Bitcoin will continue to rise in the future. Therefore, if you want to get a good return on investment, then investing in BTC is a good idea.

Expected return

First of all, it is important to note that in terms of investing money in Bitcoin, the potential gain is higher than the potential loss. According to many crypto analysts, Bitcoin will become the future international currency. In other words, the chance of losing money is lower than the chance of making big money. Therefore, this is a safe investment.

If this happens, it will promote global trade. As a result, the value of Bitcoin will increase by 20,000 times its current value. However, it can only happen when the currency is recognized as a valid currency for domestic and international trade.

Investment interest

Since Bitcoin is regarded as a commodity currency, you can invest in your Bitcoin just like using traditional fiat currency to invest money in any business. Therefore, you can also earn interest from the investment. In addition, you can also sell them after Bitcoin appreciates.

Easily accessible

What’s interesting is that you don’t have to hold Bitcoin for a long time to make some profit. Depending on how much money people transfer to the Bitcoin network, you can also make a profit in a short period of time.

In short, investing in Bitcoin in 2019 is a good idea. Just make sure you follow the latest developments to seize the opportunities available.

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Bitcoin News And Highlights You Should Know

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Although “Bitcoin” is a very common term, few people really know what it is. Although it is a trading system, it differs most from other systems for two main reasons. First, it involves a digital currency that can be easily transferred. However, what makes it more unique is the fact that it does not involve any banks or other official financial institutions. It is just an independent and irresponsible peer-to-peer system. Here are some of the most important recent Bitcoin news and highlights:

Anonymity-If you want to conduct simple transactions without using personal identity and bank account details, Bitcoin will make it possible. Unless you choose otherwise, all executed transactions are anonymous and cannot be traced back to you. For each transaction, a unique address will be created, and it will never be repeated.

Recipient’s privileges-unlike most other forms of transactions, Bitcoin is irreversible and once you make a payment, you cannot cancel the payment. If the transaction must be cancelled, the consignee’s consent must be obtained. And, unlike other financial transactions that are processed almost immediately, the transaction takes about 10 minutes to complete.

Buying luxury goods-One of the main reasons for the popularity of Bitcoin is that they are very suitable for buying foreign luxury goods. These are the heavy taxes imposed by the governments of these countries, and the final cost becomes very high. Since Bitcoin does not involve any government agency, you need to pay zero taxes. Coupled with the already very low transaction costs, this makes it an ideal choice for purchasing items from abroad.

Mobile Wallet-One of the most popular Bitcoin news is the introduction of a mobile version in addition to the computer version. This means that you can install an application on your smartphone and manage your bitcoins through the application. It also allows you to easily exchange coins into U.S. dollars at any time.

Acceptance is limited-despite the increasing use of Bitcoin, you must check whether they are accepted in the store where you want to use them. There are still many places that do not accept them as valid and usable forms of currency. However, as digital currencies easily become more and more popular, this situation is expected to change soon.

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The Five Laws of Gold

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We live in an age of impatience, and when it comes to money, we need more now, not tomorrow. Whether it’s mortgage deposits or cleaning up credit cards that consume our energy for a long time after we stop enjoying the things we buy with them, the sooner the better. In terms of investment, we hope to choose easily and get a quick return. Therefore, the current enthusiasm for cryptocurrency. When Ethereum is stuck in an endless upward spiral and Bitcoin is a constant gift, why invest in nanotechnology or machine learning?

A century ago, the American writer George S Clason took a different approach. In “The Richest Man in Babylon”, he showed the world a treasure trove of financial principles-literally based on things that seem outdated today: prudence, prudence and wisdom. Clarkson uses the wise men of the ancient city of Babylon as the spokesperson for his financial advice, but this advice is as important as the Wall Street crash and the Great Depression a century ago are imminent today.

Take the five laws of gold as an example. If you want your personal finances to be healthy, no matter where you are, these are for you:

The first rule: Gold is happy and increases in quantity to those who use at least one-tenth of their income to create property for the future of themselves and their families. In other words, save 10% of your income. at the lowest limit. If you can, you can save even more. And this 10% is not for next year’s holidays or new cars. This is long-term. Your 10% can include your pension, ISA, premium bonds or any type of high interest/restricted access savings account. Okay, interest rates for depositors are currently at historical lows, but who knows the interest rates five or ten years from now? Compound interest means that your savings will grow faster than you think.

Law No. 2: Gold works diligently and contentedly for wise owners looking for lucrative jobs. So if you want to invest rather than save money, do it wisely. There are no cryptocurrencies or pyramid schemes. We focus on the words “profitable” and “employment”. Let your money work for you, but remember that the best hope for this aspect of the rainbow is long-term stable returns, not lottery wins. In practice, this is likely to mean that companies that have issued shares provide regular dividends and a steady upward trend in stock prices. You can invest directly or through a fund manager in the form of a unit trust, but before breaking up a penny, please refer to Articles 3, 4 and 5 of the law…

Decree No. 3: Gold insists on the protection of prudent owners. When investing under the advice of those wise owners, the owners should invest carefully. Before you perform any operations, please contact an experienced and qualified financial advisor. If you don’t know, please do some research. Check them out on the Internet. What expertise do they have? What kind of customer? Read the comments. Call them first to find out what they can offer you, and then decide whether to have a face-to-face meeting. Check their commission schedule. The company’s financial products are promoted under the contract. Are they independent or tied to a specific company? A decent financial adviser will encourage you to master the basics: pensions, life insurance, places to live, and then guide you in investing in emerging markets and space travel. When you are satisfied with the consultants you can find, listen to them. Trust their suggestions. However, please check your relationship with them regularly (for example once a year), and if you are not satisfied, please find another place. If your initial judgment is correct, then it is likely that you will stick to the same consultant for many years to come.

Rule No. 4: Slip gold away from those who invest it in a business or purpose that they are not familiar with or approved by their skilled technicians. If you have an in-depth understanding of food retail, you must invest in supermarket chains that increase market share. Likewise, if you work for a company that has an employee stock ownership plan, you can use it if you are sure that your company is promising. However, do not invest in any market or financial product that you do not understand (remember to crash!) or cannot be fully researched. If you really want to try currency trading or option trading, and you have a financial advisor, please contact them first. If they cannot keep up, ask them to refer you to someone who can. Most importantly, no matter how large the potential return is, please avoid any uncertainties.

Rule No. 5: Gold flees from those seeking impossible income, or those who follow the tempting advice of scammers and planners, or those who believe in their own experience. Similarly, the fifth law closely follows the fourth law. If you start searching for financial advice and wealth creation ideas on the Internet, your inbox will soon be full of “scammers and scammers”, promising you that if you will invest £999 in its “system”, it will One pound becomes 1XXXXXX Chicago Mercantile Exchange. Remember, the only person who makes money in the gold rush is the one who sells the shovel. Buy the wrong shovel and you will quickly get into debt trouble. Not only will you spend money to buy a system with no verified value; following it, you may pay a greater loss than you paid. At least you should check the real reviews of the product. Do not purchase any systems, investment tools or financial products from any company that has not been registered by a national regulatory authority (such as the UK Financial Conduct Authority).

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In Bitcoin We Trust?

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You may have heard of Bitcoin so far, but can you define it?

Generally, it is described as a non-governmental digital currency. Bitcoin is sometimes referred to as network currency or, in terms of its source of encryption, also known as cryptocurrency. These descriptions are accurate enough, but they miss the point. It’s like describing the dollar as a piece of green paper with a picture printed on it.

I have my own way of describing Bitcoin. I think this is a store credit without a store. Prepaid phone without phone. Precious metals without metals. Public bidding, statutory bidding that does not disclose or does not disclose debts, unless the tenderee wishes to accept it. A musical instrument is only supported by the full beliefs and credibility of its anonymous creators, so I don’t trust anyone, except for ingenuity, I don’t give any praise to it.

I will not touch Bitcoin with a 10-foot USB cable. But there are already a considerable number of people, and there will be more soon.

Part of the reason is because the entrepreneurs Cameron and Tyler Winklevoss, known for their role in the origins of Facebook, are now seeking to use their technical knowledge and money to bring Bitcoin into the mainstream.

Winklevosses hopes to establish a Bitcoin exchange-traded fund. The ETF will enable investors who lack the technical knowledge to directly purchase digital currencies to use Bitcoin more widely. As of April, Winklevosses is said to have held about 1% of all existing bitcoins.

Bitcoin was created in 2009 by an anonymous cryptographer on the premise that as long as enough people decide to consider it as valuable, anything, even intangible code, can have value. Bitcoin only exists as a digital representation and is not linked to any traditional currency.

According to the Bitcoin website, “Bitcoin is designed around a new form of currency that uses cryptography to control its creation and transactions, rather than relying on a central authority.” (1) New Bitcoin Coins are solved by computer algorithms to discover virtual coins “mined” by users. The creator of Bitcoin allegedly stated that the final supply of Bitcoin will be capped at 21 million.

Although Bitcoin advertises itself as “a very safe and cheap payment method”, in fact, few companies have adopted the move to accept Bitcoin (2). Among those who have a blacklist, a considerable part of them work on the black market.

Bitcoin is anonymously traded via the Internet, without any involvement of mature financial institutions. As of 2012, sales of drugs and other black market commodities accounted for approximately 20% of the dollar exchange rate of the major Bitcoin exchange Mt.bitcoin. x According to reports, the drug law enforcement agency recently conducted the first Bitcoin seizure in history, after the transaction was an anonymous Bitcoin-only Silk Road “Silk Road” that combined a transaction with prescription drugs and illegal drugs. Sales are linked together.

Some Bitcoin users also suggested that the currency can be used as a means of tax avoidance. This may be correct, but only in the sense that Bitcoin contributes to illegal tax evasion, and not in the sense that Bitcoin actually plays any role in real tax planning. According to federal tax laws, taxable transactions can be made without cash. Barter transactions and other non-cash transactions still have to pay all taxes. There is no reason to treat transactions involving Bitcoin differently.

In addition to criminal factors, the main devotees of Bitcoin are speculators, who have no intention of using Bitcoin to buy anything. These investors firmly believe that the limited supply of Bitcoin will force its value to follow a continuous upward trajectory.

Bitcoin did indeed experience some notable spikes in value. But it also suffered major losses, including a drop of 80% in 24 hours in April. At the beginning of this month, Bitcoin fell to around US$90 from its pre-crash high of US$266 in April. According to mtgox.com, earlier this week, they were trading at close to $97.

Winklevosses allows smaller investors to make profits or losses based on actual conditions, thereby making it easier to invest in Bitcoin without having to worry about the hassle of actually buying and storing electronic coins. Despite claims of security, it turns out that there are problems with Bitcoin storage. In 2011, the attack on the mountain Gox exchange forced it to temporarily shut down and caused the price of Bitcoin to briefly drop to near zero. Since Bitcoin transactions are anonymous, if you suddenly find that your e-wallet is empty, you are unlikely to track down the culprit. If Winklevosses gets regulatory approval, their ETF will help protect investors from the threat of personal theft. However, the ETF does not help solve the volatility problem caused by large-scale thefts elsewhere in the Bitcoin market.

Although Bitcoin is wrapped in a high-tech sheet, the amount of the latest currency is surprisingly the same as one of the oldest currencies-gold. Bitcoin’s own vocabulary, especially the term “mining”, highlights this connection, and it does so intentionally. The mining process is designed to be difficult to control the supply, making it difficult to extract more conventional resources from the ground. However, this kind of wording is far from providing a sense of security and should be paid attention to.

Gold is an investment of last resort. It has almost no intrinsic value. It will not generate interest. But because its supply is limited, it is considered more stable than money that can be printed at will.

The problem with gold is that it can’t do anything. Since gold coins are no longer in use, most gold coins in the world are now stored in the vaults of central banks and other financial institutions. As a result, gold has almost no connection with the real economy. When the real economy feels like a scary place, this seems like a good thing. However, once other attractive investment options appear, gold will lose its luster. This is what we have seen from the recent drop in gold prices.

In the process of pushing Bitcoin to the mainstream, its promoters have accepted and in some cases sought to strengthen supervision. Gox was registered as a money service business in the Financial Crime Enforcement Network of the Ministry of Finance last month. It also adds customer verification measures. These changes are in response to the Financial Crimes Enforcement Network’s March directive, which clarifies the application of its rules to virtual currencies. The ETF proposed by Winklevosses will bring a new level of responsibility.

However, in the end, I hope that Bitcoin will gradually disappear in the shadow of the black market. Those who want a regulated, safe currency that can be used for legal business transactions will be from the many currencies sponsored by national governments that have sufficient resources, the real world economy, transparency and security far exceed those of the Bitcoin world Choose one. can provide.

After the Bitcoin bubble burst, we will not even be able to use the remaining coins as jewelry.

Resources:

1) Bitcoin, “About Bitcoin”

2) Bitcoin, “Bitcoin for Business”

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