What is Bitcoin, how is it different from "Real" Money and how can I get it?

Bitcoin is a virtual currency. It does not exist in physical form like the currency and coin we are used to existing in. It doesn’t even exist in physical form like Monopoly money. These are electrons – not molecules.

But think about how much cash you personally handle. You get a paycheck that you take to the bank – or it’s automatically deposited without you ever seeing the paper it’s not printed on. Then use a debit card (or checkbook, if you’re old school) to access those funds. At best, you see 10% of that in cash in your pocket or pocketbook. So it turns out that 90% of the assets you manage are virtual – electrons in a spreadsheet or database.

But wait – those are US funds (or whatever country you’re from), safe in the bank and guaranteed by the full faith of the FDIC up to about $250,000 per account, right? Not really. Your financial institution may only require 10% of your deposits on deposit. In some cases it is even less. He lends the rest of your money to other people for up to 30 years. He charges them the loan, and you the privilege of allowing them to borrow it.

How is money created?

Your bank can create money by lending it out.

Let’s say you deposited $1000 into your bank. Then they give $900 of that. Suddenly you have $1000 and someone else has $900. Magically, $1,900 floats around where only catfish used to be.

Now say your bank instead lends $900 of your money to another bank. That bank in turn lends $810 to another bank, which then lends $720 to the customer. Poof! $3,430 in an instant – almost $2,500 created out of nothing – as long as the bank follows your government’s central bank rules.

The creation of Bitcoin is different from the creation of bank assets such as cash from electrons. It is not controlled by the central bank of the government, but by the consensus of its users and nodes. It is not created by a limited mint in a building, but by distributed open source software and computing. And creation requires a form of real work. More on that soon.

Who invented BitCoin?

The first bitcoins were in blocks of 50 (the “Genesis Block”) created by Satoshi Nakomoto in January 2009. At first it had no value. It was just a toy cryptographer based on a paper published two months earlier by Nakomoto. Nakotmoto is obviously a made up name – no one seems to know who he or she is.

Who keeps track of all that?

Once the Genesis Block was created, bitcoins were generated from then on by doing the job of keeping track of all transactions for all bitcoins as a sort of public ledger. Nodes/computers that perform calculations in the ledger are rewarded for doing so. For each set of successful calculations, a node is rewarded with a certain amount of bitcoins (“BTC”), which are then regenerated in the bitcoin ecosystem. Hence the term “BitCoin Miner” – because the process creates new BTC. As the supply of BTC increases and the number of transactions increases, the work required to update the public ledger becomes more difficult and complex. As a result, the number of new BTC in the system is designed to be around 50 BTC (one block) every 10 minutes, worldwide.

Although the computing power to mine BitCoin (and to update the public ledger) is currently increasing exponentially, so is the complexity of the mathematical problem (which, by the way, also requires a certain amount of guesswork), or “proof” required to mine BitCoin and to settle transaction ledgers at any time. So the system still only generates one block of 50 BTC every 10 minutes, or 2106 blocks every 2 weeks.

So, in a way, everyone keeps track of it – that is, all the nodes in the network keep a record of the history of every single BitCoin.

How much is there and where is it?

There is a maximum number of bitcoins that can ever be generated, and that number is 21 million. According to the Khan Academy, the number is expected to peak around 2140.

As of this morning, there were 12.1 million BTC in circulation

Your own BitCoins are stored in a file (your BitCoin wallet) in your own storage – your computer. The file itself is proof of the number of BTC you have and can move with you on your mobile device.

If that cryptographic key file in your wallet is lost, so is your supply of BitCoin funds. And you can’t get it back.

How much is it worth?

The value varies depending on what people think it’s worth – just like in the exchange of “real money”. But since there is no central body trying to keep the value at a certain level, it can vary more dynamically. The first BTC were basically worth nothing at the time, but those BTC still exist. As of 11 AM on December 11, 2013, the public value was $906.00 per bitcoin. When I finished writing this sentence, it was $900.00. Around early 2013, the value was around $20.00. On November 27, 2013, it was valued at more than $1,000.00 per BTC. So it’s a little volatile right now, but it’s expected to calm down.

The total value of all bitcoins – as of the period at the end of this sentence – is about US$11 billion.

How do I get some?

First, you must have a BitCoin wallet. This article contains download links.

Then one way is to buy something from another private party, like these guys at Bloomberg TV. One way is to buy something on the stock exchange, such as Mt. Gox.

And finally, one way is to dedicate a lot of computer power and electricity to the process and become a BitCoin miner. That is beyond the scope of this article. But if you have a few thousand extra dollars lying around, you can get some pretty decent gear.

How do I spend it?

There are hundreds of merchants of all sizes that take bitcoin as payment, from coffee shops to car dealerships. There is even a BitCoin ATM in Vancouver BC to convert your BTC to cash in Vancouver BC.

And so?

Money has a long history – millennia. A slightly more recent legend tells us that Manhattan Island was bought for wampum – shells and the like. In the early years of the United States, different banks printed their own currency. On a recent visit to Salt Spring Island, British Columbia, I spent currency that was only good on the beautiful island. The common theme among them was the trust agreement among the users that the currency has value. Sometimes that value was directly tied to something solid and physical, like gold. In 1900, the US pegged its currency directly to gold (the “Gold Standard”) and broke that link in 1971.

Currency is now traded like any other commodity, although the value of a country’s currency can be propped up or down by the actions of its central bank. BitCoin is an alternative currency that is also traded and its value, like other commodities, is determined through trade, but is not retained or diminished by the actions of any bank, but directly by the actions of its users. However, its supply is limited and known, and (unlike physical currency) so is the history of each individual BitCoin. Its perceived value, like all other currencies, is based on its utility and trust.

As a form of currency, BitCoin is not exactly a new thing in Creation, but it is certainly a new way of creating money.

Is the demand for gold seasonal and does it follow a pattern?

This is a frequently asked question. There is no doubt that the demand for gold is seasonal all over the world. There are different seasonal patterns to look for gold jewelry. The pattern varies from country to country. Global demand for gold is usually highest in the fourth quarter of the year. Demand for gold is generally weakest in the Northern Hemisphere summer, when European jewelry manufacturers are mostly closed. Demand rises in the fourth quarter of the year, as different nations celebrate various festivals and events at that time.

In the Western world, especially at Christmas time, people buy more gold. So Christmas is the season for buying gold in the West. Before Christmas, people give gold gifts to their loved ones and brighten up their Christmas.

As far as the Islamic world is concerned, Eid al-Fitr (the end of Ramadan) is the most important gold-giving event. Eid al-Adha is another special event for Muslims. It is held seventy days after Eid al-Fitr. Eid al-Adha is also an important time of gifting gold to friends and family. Pilgrims who go to Mecca and Medina for Hajj and Umrah also buy gold for themselves and their relatives.

Pakistan is among the top ten consumers of gold. In Pakistan people mostly buy gold at the time of wedding. In every wedding in Pakistan, gold is considered as the basic dowry item. The price of gold during the wedding season is usually high.

In Turkey, demand is highest due to tourist purchases in the third quarter of the year. It should be noted that the seasonal pattern does not affect the price of gold. It is widely known in the gold markets and is therefore reasonably priced. Apart from demand, there are many other factors that affect the price of gold in Turkey.

In China and East Asia, gold is generally bought around the time of Chinese New Year, which is actually the last part of January or the first half of February. During celebrations, the Chinese display gold prominently, as it signifies good fortune.

In India, gold purchases increase during the wedding season and during festivals that vary from region to region. India’s biggest festival is Diwali. From region to region, the wedding season varies, but is generally from November to May. The two-week period of Shraddha during August is disappointing for the ceremonies associated with the purchase of gold. Adik Mas follows this, which is also not the time to buy gold. (Exact dates vary, as the Hindu calendar is lunar.)

You can find a visible increase in the months of January and September, as this is when Indian manufacturers usually stock up to meet the demands of two Indian wedding seasons. Diwali festival starts in the month of November and ends in December. The second starts at the end of March and lasts until the beginning of May. Even the price of gold increases with the increase in the value of dollar, people still buy gold especially during celebrations and now buying gold is turning into a necessity.

Bitcoin: What is it and is it right for your business?

OK, what is Bitcoin?

It is not an actual coin, it is a “cryptocurrency”, a digital form of payment that is produced (“mined”) by many people around the world. It enables peer-to-peer transactions instantly, worldwide, for free or at very low cost.

Bitcoin was invented after decades of cryptographic research by a software developer, Satoshi Nakamoto (believed to be a pseudonym), who designed the algorithm and unveiled it in 2009. Its true identity remains a mystery.

This currency is not backed by a tangible commodity (such as gold or silver); bitcoins are traded online making them a commodity in their own right.

Bitcoin is an open source product, available to anyone who is a user. All you need is an email address, internet access and money to get started.

where does he come from?

Bitcoin is mined on a distributed computer network of users using specialized software; the network solves certain mathematical proofs and looks for a certain string of data (a “block”) that produces a certain pattern when the BTC algorithm is applied to it. The match produces bitcoin. It is complex and requires time and energy.

Only 21 million bitcoins will ever be mined (about 11 million are currently in circulation). The mathematical problems that network computers solve are becoming increasingly difficult to keep mining operations and procurement under control.

This network also verifies all transactions through cryptography.

How does Bitcoin work?

Internet users transfer digital assets (bits) to each other online. There is no online bank; rather, Bitcoin is described as an Internet distributed ledger. Users buy Bitcoin with cash or by selling a product or service for Bitcoin. Bitcoin wallets store and use this digital currency. Users can sell this virtual ledger by trading their Bitcoins to someone else who wants to. Anyone can do it, anywhere in the world.

There are smartphone apps for making mobile Bitcoin transactions, and bitcoin exchanges dot the Internet.

How is Bitcoin valued?

Bitcoin is not held or controlled by a financial institution; it is completely decentralized. Unlike real money, it cannot be devalued by governments or banks.

Instead, Bitcoin’s value lies simply in its acceptance among users as a form of payment and because its supply is limited. Its global currency values ​​fluctuate according to supply and demand and market speculation; As more people create wallets and hold and spend bitcoins, and more companies accept it, the value of Bitcoin will increase. Banks are now trying to value Bitcoin, and some investment websites predict that the price of Bitcoin will be several thousand dollars in 2014.

What are its advantages?

There are benefits for consumers and merchants who want to use this payment option.

1. Fast Transactions – Bitcoin is instantly transferred over the Internet.

2. No Fees/Low Fees — Unlike credit cards, Bitcoin can be used for free or with very low fees. Without a centralized institution as an intermediary, no authorizations (and fees) are required. This improves sales profit margins.

3. Eliminates the risk of fraud – Only the Bitcoin owner can send a payment to a recipient who is the only one who can receive it. The network knows that the transfer has taken place and the transactions have been confirmed; they cannot be disputed or taken back. This is big for online merchants who are often subject to credit card processors’ judgments about whether a transaction is fraudulent or not, or for businesses that pay a high price for credit card chargebacks.

4. Data is secure — As we’ve seen with the recent hacks of national retailers’ payment processing systems, the Internet isn’t always a safe place for private data. With Bitcoin, users don’t give up their private data.

a. They have two keys – a public key that serves as a bitcoin address and a private key with personal information.

b. Transactions are digitally “signed” with a combination of public and private keys; a mathematical function is applied and a certificate is generated proving that the user initiated the transaction. Digital signatures are unique to each transaction and cannot be reused.

c. The merchant/recipient never sees your secret information (name, number, physical address) so it is somewhat anonymous, but traceable (to a public key bitcoin address).

5. Convenient payment system — Merchants can use Bitcoin fully as a payment system; they don’t need to hold Bitcoin currency because Bitcoin can be converted into dollars. Consumers or merchants can trade in Bitcoin and other currencies at any time.

6. International payments – Bitcoin is used worldwide; Merchants and e-commerce service providers can easily accept international payments, opening up new potential markets for them.

7. Easy to Track — The network tracks and permanently records every transaction on the Bitcoin blockchain (database). In case of possible illegal actions, it is easier for law enforcement officials to trace these transactions.

8. Micropayments are possible – Bitcoins can be divided into one hundred millionths, so making small payments of one dollar or less becomes a free or near-free transaction. This could be a real boon for shops, cafes and subscription-based websites (videos, publications).

Still a little confused? Here are some examples of transactions:

Bitcoin in a retail environment

When making a payment, the payer uses a smartphone app to scan a QR code with all the transaction information needed to transfer the bitcoins to the merchant. By touching the “Confirm” button, the transaction is completed. If the user does not own Bitcoin, the network converts the dollars in his account into the digital currency.

The seller can convert that Bitcoin into dollars if they want, there were no or very low processing fees (instead of 2 to 3 percent), hackers can’t steal the consumer’s personal information, and there is no risk of fraud. Very smooth.

Bitcoins in Hospitality

Hotels can accept Bitcoin for on-premises room and dining payments for guests who want to pay with Bitcoin using their mobile wallets or via computer to the website to pay for an online reservation. A third-party BTC merchant processor can help handle transactions that clear over the Bitcoin network. These processing clients are installed on tablets at the front desk of facilities or in restaurants for customers with BTC smartphone applications. (These payment processors are also available for desktop computers, in retail POS systems, and integrated into food POS systems.) No need to exchange credit cards or money.

These cashless transactions are fast and the processor can convert bitcoins into currency and make a daily direct deposit into the institution’s bank account. In January 2014, it was announced that two hotel-casinos in Las Vegas would accept Bitcoin payments at the front desk, in their restaurants and in the gift shop.

Sounds good – what’s the catch?

Business owners need to consider participation, security and cost issues.

• Relatively few ordinary consumers and merchants currently use or understand Bitcoin. However, adoption is increasing globally, and tools and technologies are being developed to facilitate participation.

• It’s the Internet, so hackers are a threat to the exchange. The Economist reported that a bitcoin exchange was hacked in September 2013 and $250,000 in bitcoins were stolen from users’ online vaults. Bitcoins can be stolen just like other currencies, so vigilant network, server and database security is paramount.

• Users must carefully guard their bitcoin wallets containing their private keys. Secure backups or prints are critical.

• Bitcoin is not regulated or insured by the US government so there is no insurance for your account if the exchange goes down or is robbed by hackers.

• Bitcoins are relatively expensive. Current exchange rates and sales prices are available on the Internet exchanges.

Virtual currency is not yet universal, but it is becoming more well-known and accepted in the market. A business may decide to try Bitcoin to save on credit card and bank fees, as a customer convenience, or to see if it helps or hinders sales and profitability.

Are you thinking about accepting Bitcoin? Are you already using it? Share your thoughts and experiences with us.

What is Bitcoin and why is cryptocurrency so popular?

Bitcoin has been a buzzword in the financial space. In fact, Bitcoin has exploded onto the scene in the last few years and many people and many large companies are now jumping on the bitcoin or cryptocurrency bandwagon wanting a piece of the action.

People who are brand new to the cryptocurrency space ask this question all the time; “What exactly is Bitcoin?”

Well, for starters, bitcoin is actually a digital currency that is beyond the control of any federal government, is used worldwide, and can be used to buy things like your food, drinks, real estate, cars, and more.

Why is Bitcoin so important?

Bitcoin is not subject to things like government control and fluctuations in foreign currencies. Bitcoin is backed by the full faith of an individual (you) and is strictly peer-to-peer.

This means that anyone transacting with Bitcoin, the first thing they realize is that it is much cheaper to use than trying to send money from bank to bank or using any other service that requires sending and receiving money internationally.

For example, if I wanted to send money to say China or Japan, I would have to have a fee from the bank and it would take hours or even days for that money to get there.

If I use Bitcoin, I can easily do it from my wallet or mobile phone or computer instantly without any of those fees. If I wanted to send for example gold and silver, it would require many guards, it would take a lot of time and a lot of money to move the bullion from point to point. Bitcoin can do it again with the tap of a finger.

Why do people want to use Bitcoin?

The main reason is because Bitcoin is the answer to these destabilized governments and situations where money is no longer as valuable as it used to be. The money we have now; the paper fiat currency that is in our wallets is worthless and will be worth even less in a year.

We have even seen large companies showing interest in blockchain technology. A few weeks ago, a survey went out to a handful of Amazon customers to see if they would be interested in using a cryptocurrency if Amazon created one. The results showed that many were very interested. Starbucks has even hinted at using a blockchain mobile app. Walmart has even filed for a patent for a “smart package” that will use blockchain technology to track and authenticate packages.

In our lifetime we have seen many changes happen from the way we shop, watch movies, listen to music, read books, buy cars, look for homes, now how we spend money and bank. Cryptocurrency is here to stay. If you haven’t already, it’s time for anyone to fully study cryptocurrency and learn how to take full advantage of this trend that will continue to advance over time.

Digital currency: the technological answer to self-employment

Digital currency, commonly referred to as “cryptocurrency”, is a type of money that exists only in electronic format. It is a series of data that uses a technology called Block Chain, which acts as a ledger and maintains a history of what the cryptocurrency has been used for. Similar to coins or paper money, digital currency is stored in a digital wallet and can be used as a traditional method for buyers and sellers to pay for the exchange of goods and/or services. The transfer of ownership of a digital currency is kept as a record on the blockchain that can be traced from user to user. There are obvious benefits to tracking the activity of any currency, the most important being proof of ownership and fraud prevention and mitigation.

The recent rise in popularity of cryptocurrency has given way to a new era of wealth in the tech industry. While traditional ways of generating income or accumulating wealth usually involve exchanging a product or service for money or compensation, digital currency is generated completely differently. Much like gold or silver is dug out of the ground, Digital Currency uses “miners” to process thousands and thousands of calculations every minute, effectively digging through a mountain of digital rocks and dirt to locate what ends up being the solution to an extremely complicated mathematical problem.

Until recently, a technologist’s ability to generate a salary relied on building digital applications or providing their technical skills to a business. However, with the birth of cryptocurrency, a technologist (or even a novice with some basic computer programming skills) can bypass the core job and get directly involved in the production of this new currency by building a cadre of ultra-powerful computers whose sole purpose is to “mine” cryptocurrency.

The corporate world relies heavily on the skills and abilities of computer and IT professionals. However, as the popularity of virtual money continues to grow and become more popular, combined with the natural skills that even some of the most basic computer programmers possess, the corporate world may begin to see cryptocurrency as a threat to their business operations. Compared to answering the boss at a tech firm, digital currency mining can be a very attractive job opportunity, leading to a potential shortage of qualified computer programmers in the tech industry.

A brief history of Bitcoin

Bitcoin is the leading cryptocurrency in the world. It is a peer-to-peer currency and transaction system based on a decentralized consensus-based public ledger called blockchain that records all transactions.

Now bitcoin was conceived in 2008 by Satoshi Nakamoto, but he was the product of decades of cryptography and blockchain research, not just one man. It has been the utopian dream of cryptographers and free trade advocates to have a decentralized borderless currency based on blockchain. Their dream is now a reality with the growing popularity of bitcoin and other altcoins around the world.

Now, cryptocurrency was first implemented through a consensus-based blockchain in 2009, and was first traded in the same year. In July 2010, the price of Bitcoin was only 8 cents, and the number of miners and nodes was quite small compared to the tens of thousands in the number it is today.

Within a year, the new alternative currency had risen to $1 and was becoming an interesting prospect for the future. Mining was relatively easy and people made good money earning trades and even paying with it in some cases.

Within six months, the currency had doubled again to $2. Although the price of bitcoin is not stable at a certain price, it has been showing this crazy growth pattern for some time. At one point in July 2011, the coin went crazy and hit a record high of $31, but the market soon realized that it was overvalued compared to the gains made in the field and brought it back to $2.

In December 2012, there was a healthy increase to $13, but soon the price will explode. Within four months to April 2013, the price had risen to a whopping $266. It later corrected to $100, but this astronomical price increase for the first time became famous and people started discussing the actual real-world scenario with Bitcoin.

It was around this time that I was introduced to the new currency. I had my doubts, but the more I read about it, the clearer it became that currency is the future because there is no one to manipulate it or impose itself on it. Everything had to be done by complete consensus and that is what made it so strong and free.

Thus, 2013 was a turning point for the currency. Large companies began to publicly favor accepting Bitcoin and blockchain became a popular topic for computer science programs. Many people thought at the time that bitcoin had served its purpose and would now settle down.

But the currency has become even more popular, with bitcoin ATMs popping up around the world and other competitors starting to flex their muscles in different corners of the market. Ethereum developed the first programmable blockchain, and Litecoin and Ripple started out as cheaper and faster alternatives to bitcoin.

The magic $1,000 mark was first breached in January 2017 and has quadrupled since then by September. That’s a truly remarkable achievement for a coin that was worth just 8 cents just seven years ago.

Bitcoin even survived the hard fork on August 1, 2017 and has grown nearly 70% since then, while even the bitcoin cash fork managed to find some success. It’s all because of the coin’s appeal and the stellar blockchain technology behind it.

While conventional economists argue that it’s a bubble and that the entire crypto world would collapse, it’s simply not the case. Such a bubble does not exist because the visible fact is that it has, in fact, eaten up the stocks of fiat currencies and money transaction corporations.

The future is extremely bright for bitcoin and it is never too late to invest in it, both short and long term.

5 Benefits of Bitcoin You Didn’t Know

Most people have heard of the term Bitcoin, but they don’t have a clear idea of ​​what it actually is. Simply defined, Bitcoin is a decentralized, peer-to-peer, digital currency system, designed to provide online users with the ability to process transactions through a digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by an undisclosed developer. Since then, Bitcoin has attracted enormous attention and controversy as an alternative to the US dollar, the euro, and commodity currencies such as gold and silver.

A private network of computers connected by a common program is used to conduct transactions and process payments in Bitcoin. The creation of bitcoins is based on increasingly complex mathematical algorithms and their purchase is made with standard national currencies. Bitcoin users can access their coins from their smartphones or computers.

As a new and growing virtual currency, Bitcoin has certain clear advantages over conventional government currencies. Here are 5 benefits you will enjoy when you use Bitcoin

1) No taxation

When you buy with dollars, euros or any other national currency, you have to pay an additional amount of money to the government as a tax. Each purchasable item has its own specific tax rate. However, when you buy with Bitcoin, sales tax is not added to your purchase. This is considered a legal form of tax evasion and is one of the main advantages of Bitcoin users.

With zero tax rates, Bitcoin can be beneficial especially when buying luxury items that are exclusive to a foreign country. Such items, more often than not, are heavily taxed by the government.

2) Flexible online payment

Bitcoin is an online payment system and like any other such system, Bitcoin users have the luxury of paying for their coins from any part of the world that has an internet connection. This means you could lie on your bed and buy coins instead of going through the pain of traveling to a specific bank or store to get your business done.

Moreover, paying online with Bitcoin does not require you to fill in your personal details. Therefore, Bitcoin transactions are much simpler to process than those made through US bank accounts and credit cards.

3) Minimum transaction fees

Exchange fees and costs are an integral part of standard bank transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. Because of this, the transaction costs are kept at a very low level, in contrast to international transactions carried out through conventional currencies.

Additionally, Bitcoin transactions are not known to be time-consuming as it does not involve the complications of typical authorization requests and waiting periods.

4) Hidden user identity

All Bitcoin transactions are discreet, or in other words Bitcoin gives you the option of user anonymity. Bitcoins are similar to cash-only purchases in that your transactions can never be traced back to you and those purchases are never linked to your personal identity. In fact, the Bitcoin address that is created for user purchases is never the same for two different transactions.

If you want, you have the option to voluntarily disclose and publish your Bitcoin transactions, but in most cases, users keep their identity secret.

5) No external interventions

One of the biggest advantages of Bitcoin is that it eliminates interruptions by third parties. This means that governments, banks and other financial intermediaries do not have any authority to interfere with user transactions or freeze a Bitcoin account. As already mentioned, Bitcoin is based strictly on a peer to peer system. Therefore, Bitcoin users enjoy greater freedom when purchasing with Bitcoins than when using conventional national currencies.

Digital currencies like Bitcoin are relatively new and haven’t gone through major tests yet. As a result, many feel that there are certain risks associated with using Bitcoin. Regardless of Bitcoin’s potential drawbacks, it is evident that its merits are strong enough to make it a legitimate contender to challenge conventional currencies in the not too distant future.

Crypto TREND – Second Edition

In the first edition of CRYPTO TREND, we introduced cryptocurrency (CC) and answered several questions about this new market space. There are many NEWS on this market every day. Here are a few highlights that give us an idea of ​​how new and exciting this market space is:

The world’s largest futures exchange for creating Bitcoin futures contracts

Terry Duffy, president of the Chicago Mercantile Exchange (CME) said, “I think sometime in the second week of December you’ll see ours [bitcoin futures] listing agreement. You can’t short bitcoin today, so there’s only one way. You either buy it or sell it to someone else. So you create a two-sided market, I think it’s always much more efficient.”

CME intends to launch Bitcoin futures by the end of the year pending a regulatory review. If successful, it will give investors a viable way to go “long” or “short” Bitcoin. Some sellers of exchange-traded funds have also filed for bitcoin ETFs that track bitcoin futures.

This development has the potential to allow people to invest in the cryptocurrency space without owning a CC or using the services of a CC exchange. Bitcoin futures could make digital assets more useful by allowing users and intermediaries to hedge their foreign exchange risks. That could increase adoption of the cryptocurrency by merchants who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which are free from money laundering concerns.

CME’s move also suggests that bitcoin has become too big to ignore, as the exchange appeared to shut out crypto futures in the recent past. Bitcoin is pretty much all anyone is talking about at brokerages and trading firms, which have suffered from rising but unusually quiet markets. If stock futures were to rise, it would be almost impossible for any other exchange, like the CME, to catch up, as volume and liquidity are important in derivatives markets.

“You can’t ignore the fact that this is becoming more of a story that won’t go away,” Duffy said in an interview with CNBC. There are “mainstream companies” that want access to bitcoin and there is “huge pent-up demand” from clients, he said. Duffy also believes that bringing institutional traders to the market could make bitcoin less volatile.

A Japanese village will use cryptocurrency to raise capital for municipal revitalization

The Japanese village of Nishiawakura is exploring the idea of ​​holding an Initial Coin Offering (ICO) to raise capital for municipal revitalization. This is a very new approach and they can seek national government support or seek private investment. Several ICOs have had serious problems, and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly no joke.

INITIAL COIN OFFERING – ( ICO )

We didn’t mention ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an Initial Public Offering (IPO), where a company has an actual product or service to sell and wants you to buy shares in their company, an ICO can be held by anyone who wants to start a new Blockchain project with the intention of creating a new token on their chain. ICOs are unregulated and several have been outright shams. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network. It is typical for an ICO to generate a high token price near the beginning and then come back down to reality soon after. Since ICOs are relatively easy to hold if you know the technology and have a few dollars, there have been a lot of them, and today we have about 800 tokens in play. All these tokens have a name, they are all cryptocurrency, and apart from the very famous tokens, such as Bitcoin, Ethereum and Litecoin, they are called alt-coins. At this time, Crypto Trend does not recommend participating in ICOs, as the risks are extremely high.

As we said in #1, this market is the “wild west” right now and we recommend caution. Some investors and early adopters have made big profits in this market space; however, there are many who have lost much, or everything. Governments are considering regulations because they want to know about every transaction in order to tax them all. They all have huge debts and don’t have enough money.

Until now, the cryptocurrency market has avoided many governmental and conventional financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.

A great feature of Bitcoin is that the originators chose a finite number of coins that can ever be generated – 21 million – thus ensuring that this crypto coin can never be inflated. Governments can print as much money (fiat currency) as they want and inflate their currency to death.

Future articles will deal with specific recommendations, however, make no mistake, early investing in this sector will only be for your most speculative capital, money you can afford to lose.

CRYPTO TREND will be your guide if and when you are ready to invest in this market space.

Stay Tuned!

What is the meaning of Blockchain?

Blockchain is a unique invention: the brainchild of a person or group of people known as Satoshi Nakamoto. But it has since evolved into something more significant, and the central question everyone is asking is: What is Blockchain?

By allowing digital data to be distributed but not copied, blockchain technology has created the backbone of a new kind of internet. Originally designed for digital currency, the technology of the Bitcoin community (Buy Bitcoin) is now finding other potential advantages of the technology.

Bitcoin is called “digital gold” and for good reason. So far, the total value of the currency is close to 9 billion US dollars. And blockchains can create other types of numerical values. Like the Internet (or your car), you don’t need to know how the blocker is using it. However, a basic knowledge of this new technology shows why it is considered revolutionary.

Blockchain Durability and robustness

Blockchain technology is like the Internet because it has built-in robustness. By storing identical blocks of information on your network, a blockchain cannot:

1. It has no single point of failure.

2. To be controlled by any single entity.

Bitcoin was invented in 2008. Since then, the Bitcoin blockchain has been running without significant disruptions. (Until now, all the problems associated with Bitcoin have been caused by hacking or mismanagement, in other words, these problems stem from evil intentions and human error, not from imperfections in the underlying concepts).

The Internet itself is almost 30 years old. This is a record that bodes well for blockchain technology as it is still developing.

Who will use the blockchain?

As a web infrastructure, you don’t need to know blockchain to be useful in your life.

Currently, finance offers the most impactful use cases for the technology. For example, international payments. The World Bank estimates that more than $430 billion in remittances were sent in 2015. And for now there is a high demand for development engineers.

Blockchain potentially cuts out middlemen for this type of transaction. Personal computing became more accessible to the general public with the advent of the graphical user interface (GUI), which shaped the “desktop”. Also, the most common GUIs designed for Blockchain are named like this. Wallet apps that people use to buy things with Bitcoin and store it in other cryptocurrencies.

Online transactions are closely related to identity verification processes. It’s easy to imagine application portability changing in the coming years to include other types of identity management.

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Is cryptocurrency the future of money?

What will the future of money look like? Imagine walking into a restaurant and looking at a digital menu board for your favorite combo meal. Only, instead of being priced at $8.99, it’s shown as 009 BTC.

Could crypto really be the future of money? The answer to that question depends on general consensus on several key decisions ranging from ease of use to security and regulation.

Let’s examine both sides of the (digital) coin and compare and contrast traditional fiat money with cryptocurrency.

The first and most important component is trust.

It is imperative that people trust the currency they use. What gives the dollar its value? Is it gold? No, the dollar has not been backed by gold since the 1970s. So what is it that gives the dollar (or any other fiat currency) value? Some countries’ currencies are considered more stable than others. After all, people trust that the government that issued that money stands firmly behind it and essentially guarantees its “value”.

How does trust work with Bitcoin since it is decentralized meaning their body is not a governing body that issues the coins? Bitcoin sits on a blockchain which is basically an online ledger that allows the whole world to see every transaction. Each of these transactions is verified by miners (people using computers on a peer-to-peer network) to prevent fraud and ensure there is no double spending. In exchange for their services in maintaining the integrity of the blockchain, miners receive payment for each transaction they verify. Since there are countless miners trying to make money, each of them checks each other for errors. This proof of work process is why the blockchain has never been hacked. Essentially, this trust is what gives Bitcoin its value.

Next, let’s look at trust’s closest friend, security.

How about if my bank is robbed or there is fraudulent activity on my credit card? My bank deposits are covered by FDIC insurance. Chances are my bank will also reverse any charges on my card that I never made. That doesn’t mean criminals won’t be able to pull off stunts that are frustrating and time-consuming to say the least. It is more or less the peace of mind that comes from knowing that I will most likely be healed of any wrongdoing against me.

In crypto, there are many choices when it comes to where to store your money. It is essential to know if transactions are secured for your protection. There are reputable exchanges like Binance and Coinbase that have a proven track record of fixing bugs for their customers. Just as there are fewer reputable banks in the entire world, the same is true for cryptocurrencies.

What happens if I throw a twenty dollar bill into the fire? The same goes for cryptocurrencies. If I lose my login credentials to a particular digital wallet or exchange, then I won’t be able to access those coins. Again, I cannot stress enough the importance of doing business with a reputable company.

The next issue is scaling. Currently, this might be the biggest obstacle preventing people from conducting more transactions on the blockchain. When it comes to transaction speed, fiat money moves much faster than cryptocurrencies. Visa can process around 40,000 transactions per second. Under normal circumstances, the blockchain can only handle about 10 per second. However, a new protocol is being introduced that will increase this to 60,000 transactions per second. Known as the Lightning Network, it could result in cryptocurrencies becoming the future of money.

The conversation wouldn’t be complete without talking about the benefits. What do people tend to like about their traditional banking and spending methods? For those who prefer cash, it’s obviously easy to use most of the time. If you’re trying to book a hotel room or a rental car, then you need a credit card. I personally use my credit card everywhere I go for the convenience, security and rewards.

Did you know that there are companies that provide all this in the crypto space as well? Monaco now issues cards with the Visa logo that automatically convert your digital currency into local currency for you.

If you’ve ever tried to send money to someone, you know that the process can be very tedious and expensive. Blockchain transactions allow a user to send cryptocurrency to anyone in just minutes, regardless of where they live. It’s also significantly cheaper and safer than sending a bank transfer.

There are other modern methods of money transfer that exist in both worlds. Take apps like Zelle, Venmo, and Messenger Pay, for example. These apps are used by millions of millennials every day. Did you also know that they are starting to incorporate cryptocurrencies as well?

The Square Cash app now includes Bitcoin, with CEO Jack Dorsey saying, “Bitcoin doesn’t stop at buying and selling for us. We believe this is a transformational technology for our industry, and we want to learn as quickly as possible.”

He added: “Bitcoin offers an opportunity to give more people access to the financial system.”

While it’s clear that fiat spending still dominates the way most of us move money around, the new crypto system is quickly gaining ground. The evidence is everywhere. Before 2017, it was hard to find media coverage. Now almost every major business news story covers Bitcoin. From Forbes to Fidelity, they all weigh in with their opinions.

what is my opinion Perhaps the biggest reason why Bitcoin could succeed is that it is fair, inclusive and provides financial access to more people around the world. Banks and large institutions see this as a threat to their existence. They are on the losing end of the biggest wealth transfer the world has ever seen.

Still undecided? Ask yourself this question: “Do people trust governments and banks more or less every day?”

Your answer to that question may be what determines the future of money.