Cryptocurrency?
What is it, is it legitimate as a tool or investment, can I lose money, can I make money, which one will eventually win the race?
All good questions, that deserve answers.
I will try to answer some of yours.
Now I've been hearing about this form of currency for about a year now.
Principally it has been Bitcoin,Ethereum and Ripple that I've heard of but there are literally hundreds of different types of Cryptocurrencies - in fact just today I read somewhere about Kodak was getting in on it.
So everyone is having a go but there can only be a handful of survivors.
The one i'm betting on is Bitcoin or Bitcoin cash principally since they are one of the first Cryptos off the block about 10 years ago.
But as I said hundreds of Cryptocurrencies are on the market and they are all jockeying for position.
Basically you can trade these currencies at various online trading websites even one right here in NZ. They take various fees off you for services rendered or in some circumstances all of your money.
Some of them - like Bitcoin - are based on block-chain technology:
First, a traditional ledger needs to be kept secure, you don't want unauthorised people making changes. With a public blockchain, such as Bitcoin, anyone can download a copy of it. Moreover, copies are held by hundreds or even thousands of computers and are all updated automatically at the same time. ("Copies" is a little misleading as there is no master copy.)
Second, unlike a traditional ledger where someone can go back and make changes that were difficult, if not impossible, to detect, a blockchain is immutable and cannot be changed. If a change is required, for example to show that the ownership of 0.001 of a Bitcoin that was owned by X is now owned by Y, the transfer of ownership will be appended. That way of the owners of the 0.001 can be traced. Thus blockchains provide an immutable audit trail.
Third, before X can transfer the 0.001 to Y, the blockchain is checked to see whether X owns that Bitcoin. If more than half the copies say yes, then the Bitcoin will be transferred. This validation system means that a blockchain is safer than single databases which can be hacked and have money stolen from them.
Blockchain technology can do two things.
First, it can make existing processes more efficient.
Second, it can disrupt industries.
Take aid sent to third world countries. Currently not all aid payments get to the right people due to corruption. Blockchain can solve this by using radical transparency so that the money can be traced the entire way.
Alternatively, the actual charity can be done away with. People may want to donate to people affected by earthquakes. A smart contract (a self-executing computer programme) could be written that takes information from Google searches, Twitter and also reputable news providers, so that once an earthquake over a certain magnitude occurs payments are made automatically to all those living in the area.
This block-chain tech is one you should look out for. Legitimate sources on the subject like this one from Stuff.co.nz think this could be the one technology that we see emerge from the ether of the Cryptocurrency fallout.
Banks are scurrying for position right now. There scarred they may get cut out of the picture and Block-chain is probably the way they'll do it. Along with Bitcoin, Apple, Google, Amazon and a whole host of others to numerous to mention here.'
Banks are scurrying for position right now. There scarred they may get cut out of the picture and Block-chain is probably the way they'll do it. Along with Bitcoin, Apple, Google, Amazon and a whole host of others to numerous to mention here.'
You can make money, if you know what your doing, although it looks like to me things are about to go tits up, you are more likely to lose money as unscrupulous people prey on you, if you have some spare cash.
Even that man who must be 90 soon Warren Buffett recently said "the cryptocurrency mania around the world isn't going to have a happy ending."
Even that man who must be 90 soon Warren Buffett recently said "the cryptocurrency mania around the world isn't going to have a happy ending."
Remember if someone asks you to invest tell them about the tulip boom of the 16th century .
Just one word is needed and is actually one of the first ones we learn as kids.
Just one word is needed and is actually one of the first ones we learn as kids.
NO.
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