Things That Look Positive for Cryptocurrencies

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

Could cryptocurrency really be the future of money? The answer to that question is based on general agreement on several key decisions ranging from ease of use to security and regulation.

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

The first and most important ingredient is trust.

It is essential that people trust the currency they are using. What gives the dollar its value? Is it gold? No, the dollar has not backed gold since the 1970s. So what is it that gives the dollar (or any other fiat currency) its value? Some countries’ currencies are considered more stable than others. After all, it is the people’s trust that the issuing government of that money holds firm and essentially guarantees its “value”.

How does trust work with Bitcoin since it is decentralized, meaning there is no governing body issuing the coins? Bitcoin sits on the blockchain, essentially an online ledger that allows the entire world to see all transactions. Each of these transactions is verified by miners (people using computers in a peer to peer network) to prevent fraud and ensure that there is no double spending. In exchange for their services in maintaining the integrity of the blockchain, miners receive a payment for each transaction they verify. Since there are so many miners trying to make money, everyone checks 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 its value.

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

What if my bank is robbed or there is fraudulent activity on my credit card? My deposits in the bank are covered by FDIC insurance. My bank is also likely to reverse charges on my card that I never made. That’s not to say that criminals haven’t pulled off at least some frustrating and time-consuming stunts. More or less, it’s the peace of mind that comes from knowing that I will make up for any wrongdoing against me.

In crypto, there are many options when it comes to where to store your money. It is essential to know whether the transactions are insured for your protection. There are reputable exchanges like Binance and Coinbase with a proven track record of righting wrongs for their customers. Just as there are less than reputable banks around the world, the same is true in crypto.

What if I throw a twenty dollar bill into the fire? The same goes for crypto. If I lose my login credentials to a particular digital wallet or exchange, 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. Today, this may be the biggest obstacle preventing people from making more transactions on the blockchain. In terms of transaction speed, fiat money moves much faster than crypto. Visa can handle about 40,000 transactions per second. Under normal circumstances, the blockchain can only handle about 10 transactions per second. However, a new protocol is being implemented that will increase this to 60,000 transactions per second. Known as the Lightning Network, it could cause cryptocurrency to become the future of money.

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

Did you know that there are companies in the crypto space that provide all of that? Monaco is issuing cards with the Visa logo that automatically convert your digital currency into local currency for you.

If you’ve ever tried to wire someone money, you know that the process can be very tedious and expensive. Blockchain transactions allow a user to send crypto to anyone in minutes, no matter where they live. It’s also considerably cheaper and safer than sending a bank wire.

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

The Square Cash app now includes Bitcoin, and CEO Jack Dorsey said: “Bitcoin, for us, isn’t just about buying and selling. We think it’s a transformative technology for our industry, and we want to learn as quickly as possible.”

He added, “Bitcoin offers an opportunity to bring more people into the financial system.”

While it’s clear that fiat spending still dominates the way most of us move money around, the fledgling crypto system is quickly gaining ground. The evidence is everywhere. Before 2017 it was difficult to find media coverage. Almost every major business news now covers Bitcoin. From Forbes to Fidelity, everyone is weighing in with their opinions.

What is my opinion? Perhaps the biggest reason why Bitcoin can 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 greatest wealth transfer the world has ever seen.

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

The answer to that question may determine the future of money.

An ICO is a means of raising funds through unregulated means for various cryptocurrency companies. It’s something that startups use to avoid the strict, regulated process of raising capital required by banks and venture capitalists. In such a campaign, a certain percentage of cryptocurrency is sold to project backers very early for other cryptocurrencies or legal tender.

How it’s done

When a company wants to raise money using an initial coin offering, there must be a plan outlining the details of the project in the white paper. It must determine what the project consists of, what the project needs, what its purpose is to fulfill. Also, the money that will be needed to start the whole company and how much the pioneers will keep will have to be stated.

The plan should also mention the type of currency accepted and how long the campaign is intended to run. In such a campaign, supporters and fans of the initiative will buy crypto coins using virtual currency or fiat. Coins are called tokens and are very similar to company shares sold to investors in IPOs. If the required minimum funds are not reached, the money will be returned and the entire ICO is considered successful. Once the requirements are met within a specified period, the cash can be used to start the scheme or complete it if it is still in progress.

Investors who participate in the project at the beginning are mainly motivated to buy crypto-coins in the hope that the plan will be successful and they will get more value after the launch. Projects of this type have been very successful in different economies and this is the main thing that motivates investors.

Similarities

ICOs can be compared to crowdfunding and IPOs. Like an IPO, a startup company must sell a stake in order to raise funds that will support the company’s operations. The only difference is that IPOs face investors, while ICOs are very enthusiastic about new projects and work like a crowdfunding event.

However, ICOs differ from crowdfunding in that backers of ICOs are usually motivated by the prospect of a high return on investment. Funds raised through crowdfunding are essentially donations. This is why ICOS call it crowd selling.

There have been many successful transactions so far. ICOs are innovative tools in our digital age. However, it is important for investors to take precautions as there are some fraudulent campaigns. This is because they are very unregulated. The financial authorities are not involved in this and if you lose funds through such initiatives, it is difficult to follow up for compensation.

In this regard, there are some regions that do not allow the use of ICOs. It is important to buy this money only from reliable sources, just to be safe.

Cryptocurrency is a digital alternative to using credit cards or cash to make everyday payments in a variety of situations. It continues to grow as a viable alternative to traditional payment methods, but it still needs to become more stable before it can be fully welcomed by ordinary people. Let’s take a look at some of the many benefits of using cryptocurrency:

Fraud – any problem related to fraud is minimized because cryptocurrency is digital and this can prevent a reversed or fake payment. This type of action can be a problem with other traditional payment options, such as credit cards, due to chargebacks.

Identity theft – there is no need to provide any personal information that could lead to identity theft when using cryptocurrency. If you use a credit card, the merchant is given a lot of information related to your line of credit, even for a very small transaction. Also, credit card payment is based on a pull transaction where a specific amount is requested from an account. With a cryptocurrency payment, the transaction is based on a push basis, which allows the account holder to send only the exact amount corresponding to it without any additional information.

Versatile use – cryptocurrency payments can be easily made to meet certain requirements. A digital contract can be created to fulfill a payment at a future date, refer to external events or obtain third party approval. Even with a special contract in place, this type of payment is still very fast and efficient.

Easy access – the use of cryptocurrency is widespread for anyone with access to the Internet. It is growing in popularity in some parts of the world, such as Kenya, where almost 1/3 of the population uses a digital wallet through a local microfinance service.

Low Fees: It is possible to make a cryptocurrency transaction without having to pay any additional fees or charges. However, if a digital wallet or third-party service is used to hold the cryptocurrency, there may be a small charge.

International trade – this type of payment is not subject to country fees, transaction costs, interest rates or exchange rates, which allows cross-border transfers to be completed with relative ease.

Adaptability – with nearly 1200 unique types of cryptocurrencies on the global market, there are plenty of options for using a payment method that matches your specific needs. Although there are many ways to use coins for everyday use, there are also those designed for a specific use or industry.

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 shoppers maxing out charge cards to buy Bitcoin may be over. In fact, the Korean markets have also calmed down. Anyway, trading profits, this time saving Tether (USDT) resources. At first glance, Bitcoin’s value levels are bountiful at $6,743.53. While Altcoins slide, Bitcoin maintains its position, and its value strength once again expanded to 43.2% of the aggregate market capitalization of all coins and tokens.

In any case, the purpose of this can be a liquidity full of tokens. The printing of USDT coincided with the rapid movement of Bitcoin that began in mid-2017. In any case, each USDT infusion thus far has also resulted in exciting buying through every other possible means. Today, newcomers are looking sideways, or most have given up hope of making faster additions to crypto. However, for committed brokers, using USDT is another source of income.

Although over 2.7 billion USDT were made, not all of them found their way to the BTC exchange. Not long ago, USDT bid on BTC exchanges was close to 20% and below, with strong levels of Japanese Yen, US Dollar, Korean Won and various other currency standards. However, now, the picture changed quickly, the journey of a couple of days was over.

As information from CryptoCompare indicates, more than 54% of all BTC exchanges are Tether trades, due to the high supply of the Bitfinex exchange. It seems that the crypto market has now moved to a stage where all trades are inbound, and in the coming years costs will move based on the activities of crypto insiders and not institutional brokers in the universe of traditional funds.

Half a month ago, Tether was included in a bunch of altcoins, and now it seems that the pickups are diverted to Bitcoin. While this may be certain in costs, however you look at it, it also means that for new Bitcoin buyers, once again offering in fiat welfare is problematic, and they may end up with USDT tokens. in principle, claiming for money, however it is a moderate procedure and there is a value penalty.

Meanwhile, crypto asset TrueUSD (TUSD) saw its supply contract jump from 88 million to 81 million tokens, as if the tokens were singing and turning into cash. For TUSD, reverse trading should be easier; however, this also implies a drain on digital market assets.

The concept of cryptocurrency was created in 1991. However, the first real implementation was done in 2008 by Nakamoto. The first question arises, what is cryptocurrency. Currency is a financial setup that is transferred between two parties. Initially, problems such as the double-error method arose, although the problem was later solved by concepts such as blockchain technology. The entire process is governed by cryptographic algorithms. The set of public and private keys is being transferred between the two parties. Details of each transaction are stored in each block and for each customer; A block chain forms a complete list of transactions. All the blocks together make up the block chain. These blockchains are nothing more than a financial ledger. The power of this new currency transaction system depends on the power of the cryptographic algorithm. With the implementation of algorithms like DES, the secrecy (block chain) of every financial transaction has been strengthened. However, the concept has not yet been adopted by many countries. The data in each block cannot be changed retroactively or without network consensus. The share of cryptocurrency is not that much today, but it is expected to increase over time.

Some of the characteristics of cryptocurrency are:

• Decentralized

• Distributed

• Public record

The most important aspect of cryptocurrency is the above, but the technology needs security for effective use. Issues such as double error have occurred in the past, although this issue has now been resolved. The biggest advantage of cryptocurrency is the feature of updating without touching the central server. That way, we don’t have to make any changes to the server. Also, the transaction can be done between two or three or more members of the network.

So, the various benefits you get through cryptocurrency include:

• Safe

• Fast

• Reliable

• Accurate

However, the technology has developed, although not all countries support it. The biggest sensation in cryptocurrencies is bitcoin. They are being accepted in many countries. You can also find many more cryptocurrencies. Each of them uses a unique type of algorithm. All these, you can learn through cryptography. It is a broad topic and its application in the form of cryptocurrency is one of the major advances of the last decade. The use can increase fourfold in the coming years, no doubt.

Digital currency is also used as part of dubious settings such as illegal online businesses, such as Silk Street. The first Silk Street was closed in October 2013 and since then two other forms have been used. In the year following the closing of Silk Street, the number of dark markets in unmistakables expanded from four to twelve, while the size of drug shipments expanded from 18,000 to 32,000.

Darknet markets present legal challenges. Bitcoins and different types of digital money used as part of dark markets are not known or legally mandated everywhere in the world. In the US, bitcoins are referred to as “virtual assets”. This dubious arrangement gives weight to law enforcement offices around the world to accommodate the mobile exchange of black market drugs.

Today, the global economy is moving towards a fully digital ecosystem, so everything from money transfers to investments is going paperless. And cryptocurrency is the latest addition to the field of digital payments. Cryptocurrency is basically a medium of exchange like regular currencies like USD, but it is primarily designed to exchange digital information. And here are some of the reasons why cryptocurrency has become so popular in the recent past.

1. Asset transfers: Financial analysts often define cryptocurrency as a method that can be used to enforce and execute two-party contracts on goods such as real estate and automobiles at some level. Additionally, the cryptocurrency ecosystem is also used to facilitate some specialized transfer methods.
2. Transactions: In traditional business-to-business methods, legal representatives, agents and brokers can add significant cost and considerable complexity to a simple transaction. In addition, there are brokerage fees, commissions, paperwork and other special conditions that may apply. On the other hand, cryptocurrency transactions are one-to-one affairs, mainly occurring in some peer-to-peer network structures. This results in better clarity in establishing audit trails, greater accountability and less confusion in making payments.
3. Transaction fees: Transaction fees often take quite a bite out of a person’s assets, especially if the person makes many financial transactions each month. But since data miners mainly crunch the numbers that generate different types of cryptocurrencies, they get paid for the network involved and so transaction fees never apply here. However, you may have to pay a certain amount of external fees to hire any third-party management services to maintain your cryptocurrency wallet.
4. A more confidential transaction method: Depending on the credit/money systems, the entire transaction history can become a reference document for the participating credit agency or bank every time you make a transaction. At the simplest level, it can be a check of account balances to ensure that the appropriate funds are available. But in the case of cryptocurrency, each transaction between two parties is considered a single exchange, where terms can be agreed upon and negotiated. Also, here the information exchange is done in “push” mode, where the receiver can send exactly what he likes to send. This thing completely protects the privacy of the financial history as well as the threat of identity or account theft.
5. Easier trading system worldwide: Although cryptocurrencies are mostly recognized as monetary services at the national level, they are not subject to interest rates, exchange rates, transaction fees or any other taxes imposed by a particular country. And using the peer-to-peer method of blockchain technology, transactions and cross-border transactions can be done without complications.
6. Greater access to credit: The Internet and digital data transfer are the mediums that facilitate cryptocurrency exchanges. Therefore, these services are available to people with knowledge of crypto networks, workable data connection and instant action to relevant portals and websites. The cryptocurrency ecosystem is capable of making transaction processing and asset transfer available to all willing individuals once the necessary infrastructure is in place.
7. Strong security: Once a cryptocurrency transfer is authorized, it cannot be reversed like “chargeback” transactions from different credit card companies. It can be fraud coverage that requires a private agreement between the seller and the buyer regarding returns or a mistake in the transaction.
8. Adaptability: There are about 1200 types of altcoins or cryptocurrencies in the world today. Some of them are rather transitory, but the right proportion is used for specific cases, representing the flexibility of this phenomenon.

At the time of writing, Bitcoin was approaching a new high of USD 20,000 per bitcoin. What has changed since the last time you reached that top?

Crazy Covid

The Covid19 situation has changed the way people do many things. Technology has entered the forefront of everyday life. Things that used to be done physically are now being pushed into the virtual world: schooling, eating out, entertainment, work, and buying many goods and services. A natural fit for this type of agenda is the use of cryptocurrencies. Why? They are an extension of the technology driven world. They can also be used to compete with the existing financial system at a lower cost.

acceptance

The last time Bitcoin hit its all-time high, many organizations were demonizing cryptocurrencies as a payment method used by criminals for terrorism, money laundering and illegal drug sales. Currently, Mastercard and Visa are linking cryptocurrencies to their credit cards, and Paypal is accepting Bitcoin for use on their platform. Many governments are talking about issuing cryptocurrency versions of their traditional currencies. There was also a push by Facebook partnering with big banks and other institutions to issue a cryptocurrency called Libra, it didn’t go very far but the intention is there. Cryptocurrencies are no longer for criminals, unless crimes are committed by said organizations.

Adoption

The key to any technology is widespread or mass adoption. The more people use something, the greater the demand for its use and the more important it becomes. With widespread adoption, the systems that work alongside the product also begin to change. Look at the Apple iPod, Microsoft Windows, Internet providers and electric cars as examples. With the new demand new industries and products that were not very useful without taking the original product will come piggy back.

The weakness of traditional investments

Due to the Covid scenario and the developing depression, investments in stocks and bonds are becoming quite expensive and carry more risk as the underlying economy is disconnected from the performance of these markets. High levels of debt make real estate investment riskier than in the past, as does the volatility of rental income and people’s ability to pay their mortgages. Cash is a safe haven, but rising debt and inflation expectations mean cash is also at risk. The concept of diversification means that these investments should be maintained to some extent, but today there is a longing for an asset that complements these products. This new asset is cryptocurrencies. This product allows you to diversify away from over-indebtedness, undervalued currency and high inflation.

In the first days of its launch in 2009, several thousand bitcoins were used to buy a pizza. Since then, the cryptocurrency’s meteoric rise to $65,000 in April 2021, after a nearly 70 percent drop to around $6,000 in mid-2018, has been blowing the minds of many people: crypto-currency investors, traders, or just plain curious. he missed the boat.

How it all started

Note that dissatisfaction with the current financial system led to the development of digital currency. The development of this cryptocurrency is based on the blockchain technology of Satoshi Nakamoto, apparently a pseudonym used by a developer or a group of developers.

Despite many opinions predicting the death of cryptocurrency, bitcoin’s performance has inspired many other digital currencies, especially in recent years. The success of crowdfunding brought on by blockchain fever also attracted the public to cheat and this has come to the attention of regulators.

Beyond Bitcoin

Bitcoin has inspired the launch of many other digital currencies, there are currently over 1,000 versions of digital coins or tokens. They are not all the same and their values ​​vary widely, as does their liquidity.

Coins, altcoins and tokens

Suffice it at this point to say that there are fine distinctions between coins, altcoins and tokens. Altcoins or alternative coins generally describe anything other than the forerunner bitcoin, although altcoins such as ethereum, litecoin, ripple, dogecoin, and dash are considered a “mainstream” category of coins, meaning they are traded on more cryptocurrency exchanges.

Coins serve as a currency or store of value, while tokens provide asset or utility uses, an example being a blockchain service for supply chain management to validate and track wine products from winery to consumer.

One point to note is that low value tokens or coins offer upside opportunities but don’t expect a similar meteoric rise like bitcoin. Simply put, unknown tokens can be easy to buy but difficult to sell.

Before you dive into a cryptocurrency, start by looking at the value proposition and technology considerations, which are the business strategies outlined in the whitepaper that accompanies every initial coin offering or ICO.

For those familiar with stocks and shares, it is not the same as an initial public offering or an IPO. However, IPOs are issued by companies with tangible assets and business history. Everything is done in a regulated environment. On the other hand, an ICO is based on an idea proposed in a white paper by a company – still running and without assets – that is looking for start-up funds.

Illegal, so buyer beware

“You can’t regulate the unknown” probably sums up the state of digital currency. Regulators and regulations are still trying to catch up with the ever-evolving cryptocurrencies. The golden rule in the crypto-space is “caveat emptor”, buyer beware.

Some countries are keeping an open mind while adopting a hands-off policy for cryptocurrency and blockchain applications in view of scams. However, there are regulators in other countries who are more concerned about the downsides of digital money. Regulators are generally aware of the need to strike a balance and some are looking into securities laws to try to get a handle on the many flavors of cryptocurrencies around the world.

Digital wallets: the first step

A wallet is essential to get started in cryptocurrency. Think electronic banking, but minus the protection of the law in the case of virtual currency, so security is the first and last thought in the crypto space.

Wallets are a digital type. There are two types of wallets.

• Internet-connected hot wallets that put users at risk of hacking

• Cold wallets that are not connected to the internet and are considered more secure.

In addition to the two main types of wallets, it should be noted that there are single-cryptocurrency wallets and others that are multi-cryptocurrency. There is also the option of having a multi-signature wallet, similar to having a joint account with a bank.

The choice of wallet depends on the user’s preference, pure interest in bitcoin or ethereum, as each coin has its own wallet, or you can use a third-party wallet including security features.

Wallet notes

A cryptocurrency wallet has a public and private key with personal records of transactions. The public key refers to the cryptocurrency account or address, unlike the name required to receive a check payment.

The public key is visible to everyone, but transactions are only confirmed by verification and validation based on the consensus mechanism specific to each cryptocurrency.

The private key can be thought of as a PIN commonly used in electronic financial transactions. As a result, the user should never divulge the private key to anyone and should back up any data that needs to be stored offline.

It makes sense to hold a minimum amount of cryptocurrency in a hot wallet, while a larger amount should be in a cold wallet. Losing your private key is as good as losing your cryptocurrency! The usual precautions for online financial transactions apply, from having strong passwords to being vigilant about malware and phishing.

Portfolio formats

Different types of wallets are available to suit one’s preferences.

• Third-party hardware wallets to purchase. These devices work like a USB device, which is considered secure and only connected to the Internet when needed.

• For example, web-based wallets provided by crypto exchanges are considered hot wallets that put users at risk.

• Desktop or mobile software-based wallets are mostly free and may be provided by coin issuers or third parties.

• Paper-based wallets can print important cryptocurrency data with public and private keys in QR code format. These should be kept in a safe place until needed in the crypto transaction and copies should be made in case of accidents such as water damage or printed data disappearing over time.

Crypto exchanges and markets

Crypto exchanges are trading platforms for those interested in virtual currencies. Other options include websites and brokers for direct trading between buyers and sellers, where there is no “market” price but is based on a compromise between the parties to the transaction.

This is why there are many crypto exchanges located in different countries, but with different standards of security practices and infrastructure. There are those that allow anonymous registration with just an email to open an account and start trading. However, there are others that require users to comply with international identity verification, known as Know-Your-Customer, and anti-money laundering (AML) measures.

The choice of crypto-exchange depends on the user’s preference, but anonymous ones may have limits on the extent of allowed trading or may be subject to sudden new regulations in the exchange’s home country. Minimal administrative procedures with anonymous registration allow users to start trading quickly while KYC and AML processes will take more time.

All crypto trades need to be properly processed and validated which can take anywhere from a few minutes to a few hours depending on the coin or token being transacted and the trade volume. Scalability is known to be a problem in cryptocurrency and developers are working on ways to find a solution.

Cryptocurrency exchanges fall into two categories.

• Fiat-Cryptocurrency Such exchanges offer purchase via direct bank or credit and debit card transfers or through ATMs in certain countries.

• Cryptocurrency only. There are crypto-exchanges that only deal in cryptocurrencies, meaning that customers must already own a cryptocurrency – such as bitcoin or ethereum – in order to “exchange” it for other coins or tokens, depending on the market rate.

Fees are charged to facilitate the buying and selling of cryptocurrencies. Users should do their research to ensure they are satisfied with the infrastructure and security measures, as well as to determine the fees they are comfortable with, such as the different rates charged by various exchanges.

Don’t expect a common market price for the same cryptocurrency with difference exchanges. You may spend time doing research on the best price for coins and tokens that are of interest to you.

Online financial transactions involve risks and users should consider precautions such as two-factor authentication or 2-FA, stay up-to-date on the latest security measures and be aware of phishing scams. A golden rule about phishing is to not click on links offered, regardless of whether a message or email is genuine.

In a world driven by hype and FOMO [Fear Of Missing Out]It’s becoming clearer every day that a serious crypto enthusiast needs to make a case for choosing a token to help them capture money in a world where real viable projects are hard to find and good projects with long-term prospects are even harder. ‘shit coins’.

With recent developments where most new cryptocurrencies are hitting record lows and new ICO Projects failing to live up to their hype after Crowdsale, it is now common for disappointed “investors” to blame ICO promoters on social media instead of blaming them. for not doing due diligence themselves to pick a sure post-crowdsale winner before buying a token during their ICO.

From my extensive observation, most crypto buyers simply bought the coins based on an ICO based FOMO (Fear of Missing Out) created by the masters of the hype behind these coins. Many bought without understanding the coin’s post-ICO purpose, or what the token was supposed to do after the Crowdsale. When nothing happened after the ICO, as is the case with many ICOs now, they jumped on social media to cry bloody murder.

Recently, me and my team just finished a tour in Africa and parts of the US to promote the Nollycoin ICO. We organized and sponsored different conferences, held AMA (Ask Me Anything) press conferences and held many one-on-one meetings with Crypto whales, small investors and crypto millionaires of all colors.

Through it all, one thing that surprised me more than anything else was that MOST token holders had NO idea what the underlying business or project was involved in behind the token sales.

Even more strange to my observation, it was surprising that many could not articulate the project’s value proposition, its goals or the company’s plan to disrupt the market and capture a portion of the buyers in their industry. They simply bought the ICO because the various telegrams or Facebook pages they visited told them to “Buy”. Hodl and buy more’. Most simply acted on herd instinct instead of objective deliberation.

Now, if most of the people I met were teenagers or uneducated people, I wouldn’t be so surprised by the level of ignorance of many of the crypto “investors” I’ve met. On the contrary, many of those I met were college graduates and some middle-aged. However, less than 10% of them can easily say why they bought a coin in the hope that it would increase in value over time. Everywhere I went, very few people in the crowd told me the name, experience, and ability of the corporate executives of the company selling the coins.

The only thing most of them could point out was that the coins were recommended by “respectable” influencers, when facts have shown that most of them paid colds to create respectability for FOMO and otherwise worthless shitcoins.

Beyond the so-called fake influences, many crypto buyers knew the names of the ringleaders were Russian, Chinese or Korean, even though they knew nothing about them. As if all you need to have a successful ICO is to list the names of people in Korea or China or Russia that no one could verify with a simple Google search.

While I agree that there are certainly many things to consider when deciding whether or not a project’s tokens will increase in value over time, I think the acid test and immediate evaluation criteria should be the utility of the coin itself outside of what would happen. on crypto exchanges.

Although most crypto token owners I met didn’t know it, the reality is that if you bought a token from most ICOs, you weren’t actually “investing” in that company. You would not be buying shares in the company and you would not be buying any security from the company.

And at best, what you were doing when you bought tokens in most ICOs was “donating” to a project, outside of the business ecosystem legally controlled by the issuing company, in exchange for a utility token or coin that legally had no real value.

In short, apart from hoping that the price of the tokens will rise to “the moon” or become a millionaire, there is nothing else you can do with the token other than enjoy the utility attached by the ICO company, if any.

Since no one could predict for sure how Crypto would perform on a crypto exchange when it finally got there, and recent experience has shown that the prices of most tokens would likely dive within the first few weeks of being listed on an exchange (due to heavy speculator sales), it would make sense to sell your token from looking at what value or utility you can get out of it, beyond the expected “moon” in return.

As the crypto revolution continued to revolutionize, transform, and adapt to different market developments, the only way to make sure your money isn’t going down the drain is to make sure you can still use those tokens for great value and benefits. even if you could sell it for a profit in an exchange.

When making this decision, you should ask yourself this key question: What is the value, product or service that the company selling the token is creating that will give me enough value for my cash to make this purchase worthwhile?

In a world where token prices are falling on different exchanges, the more opportunities you have to get a real-life use for a token outside of the expected list on a crypto exchange, the more likely you are to end up frustrated or broke. tabs that are useless to you.

So you have to ask again and again: If this coin was never traded on an exchange, would I be happy to support the vision? If this token has lost 70% of its value on an exchange, can I still use it and get my money’s worth with it somewhere else?

If you could not answer these questions positively after reviewing the RESEARCH and investment claims of the company, then you should think twice before buying that coin.

Final case study

Take a current ICO like Nollycoin, which is a token that powers a Blockchain-enabled film distribution ecosystem. The coin’s promoters have created different utility scenarios for the coin’s buyers to ensure that whatever happens to Nollycoin in the crypto exchange, their backers and token holders will continue to smile.

They are among the great utilities attached to the Nollycoin token in the Nollytainment ecosystem

• Ability to use Nollycoin tokens to watch exclusive movies in theaters and cinemas

• Ability to use Nollycoin tokens to access 1,000 movies on the Netflix-on-steroids blockchain Movie distribution.

• Ability to use Nollycoin tokens to purchase products and services on NollyMall, which is like an Amazon platform for entertainment-based products.

• Ability to use Nollycoin tokens to pay school fees on the NOLLY Academy platform and partner companies

As you can see, beyond the normal expectation that tokens can be listed on a crypto exchange platform, you need to look beyond the hype of an ico to the immediate and prospective utility of the token and the viability of the underlying project.

If you spent $27 on Bitcoin when Satoshi Nakamoto created it in 2009 your investment would be worth over $37,000,000.

Considered to be the greatest investment vehicle of all time, Bitcoin has seen a meteoric rise throughout 2017 going from $777 to $17,000.

Making millionaires out of opportunistic investors and leaving financial institutions speechless, Bitcoin has answered its critics at every milestone this year and some believe this is just the beginning.

The December 10th launch of Bitcoin futures, which will allow investors to access the Bitcoin market through a major US regulated exchange, means we’re just getting started.

What makes Bitcoin so valuable is that there is a limited amount. There will be a maximum of 21 million Bitcoins and unlike regular fiat currency, you cannot print more of them at will. This is because Bitcoin runs a working protocol: to generate it, you need to mine using the processing power of computers to solve the complex algorithms of the Bitcoin blockchain. Once this is achieved, you will be rewarded with Bitcoin as payment for the ‘work’ you have done. Unfortunately, the reward you get for mining has been drastically reduced almost every year since Bitcoin’s inception, which means the only viable way for most people to get Bitcoin is to buy it on an exchange. At today’s price levels, is it worth taking that risk?

Many believe that Bitcoin is just a bubble. I spoke with long-term investor and cryptocurrency expert Duke Randal, who believes the asset is overvalued, “I would compare it to many supply and demand bubbles throughout history, such as Dutch Tulip Mania and the dot com bubble of the late 90s. Prices are purely speculative. Based on, and When you look at the functionality of Bitcoin as an actual currency, it’s almost embarrassing.” For those who don’t know, the dot com bubble was a period from 1997-2001 where many Internet companies were created and given wildly optimistic valuations based on pure speculation, then dropped 80-90% as the bubble started to collapse. the 2000s Some companies, such as eBay and Amazon, recovered and are now above those valuations, but for others it was the end of the line.

Bitcoin was originally created to take power away from our financial systems and put people in control of their money by cutting out the middle man and enabling peer-to-peer transactions. However, it is currently one of the slowest cryptocurrencies on the market, with its transaction speed four times slower than the fifth largest cryptocurrency and its closest competitor for payment solutions, Litecoin. The untraceable privacy coin Monero makes transactions even faster, with an average block time of two minutes, a fifth of what Bitcoin can do, and that’s without anonymity. The world’s second largest cryptocurrency, Ethereum, already has a higher transaction volume than Bitcoin, despite the fact that each Ether costs only $676, compared to Bitcoin’s $16,726.

So why is the value of Bitcoin so high? I asked Duke Randal the same question. “It all boils down to the same economics of supply and demand, there’s not a lot of Bitcoin available and its recent price increase has attracted a lot of media attention, along with the launch of Bitcoin futures which many see as the first sign. Bitcoin’s mass market is accepting it, a lot of people are on board. is the pursuit of monetary gain. Like any asset, when there is more demand to buy than to sell, the price rises. This is a bad thing. New investors entering the market without understanding the principles behind blockchain and these currencies are likely to burn out.”

Another reason is that Bitcoin is very volatile, it has been known to go up or down by thousands of dollars in less than a minute, and if you are not used to it and don’t expect it, it tends to panic less experienced investors, resulting in a loss. This is another reason why Bitcoin will struggle to gain acceptance as a form of payment. The price of Bitcoin can move significantly as sellers accept Bitcoin from customers and sell it on local currency exchanges. This erratic movement can wipe out their entire profitability. Will this instability disappear soon? Not likely: Bitcoin is a relatively new asset class and while awareness is growing, only a very small percentage of the world’s population owns Bitcoin. Until it distributes more and its liquidity improves significantly, volatility will continue.

So if Bitcoin is pretty useless as an actual currency, what are its applications? Many believe that Bitcoin has gone from being a viable form of payment to a store of value. Bitcoin is like “digital gold” and will be used as a benchmark for other cryptocurrencies and blockchain projects to measure and exchange. Recently, there have been stories of people in hyperinflationary countries such as Zimbabwe buying Bitcoin to hold on to their wealth, rather than watch its value decline under the carelessness of its central banking system.

Is it too late to get involved in Bitcoin? If you believe in what these cryptocurrencies will do for the world, it’s never too late to get involved, but with the cost of Bitcoin so high, it’s a boat ride for some who have already set sail. You’d be better off looking at Litecoin, which is up 6908% year-to-date, or Ethereum, which is up a whopping 7521% year-to-date. These new and faster currencies hope to achieve what Bitcoin did at its inception in 2009, and replace government fiat currencies.

Who knows what the price of these currencies will be ten, fifteen or even twenty years from now? One thing’s for sure though, we better brace ourselves because it’s going to be a wild ride.