WHAT IS CRYPTOCURRENCY
It is simply a digital currency unit run on a blockchain independent of central controls such as Central banks. To be a currency obviouky it has to be accepted as a viable means of exchange of monetary value between 2 or more individuals
WHAT IS BLOCKCHAIN
Instead of centralized databases such as run by Fed reserve, ECB etc, Blockchain technology is decentralized and is a distributed database where each node independently verifies the transactions and keeps a record of it. The information of transaction is recorded in blocks. Once recorded, it is inherently resistant to modification. To make transactions you have to have a private key. Private key is ownership. It is a digital key.
WHY CRYPTOCURRENCY
Monetary slavery and terrorism has been practiced by Governments for centuries. A Federal reserve note also known as the dollar used in America is issued by the Federal reserve bank. It is not a Federal institution. It is not even an American institution. Governments for their follies and agenda can tax people as much as they want. Governments can also record each and every transaction and thus exert control where none should exist.
With cryptos, there is a degree of anonymity. For a transaction you do not have to give out personal information. You can transact across all borders via the internet. There is no taxation on transactions.
It is relatively safe , secure and desirable means of transaction across the globe. Any independent thinker would favor it over other governmental fiat currencies.
WHY CRYPTOS MAY NOT BE A SAFE OPTION
Where cryptos has created millionaires, people have also suffered large losses due to theft and other issues. Remember SPACEBIT AND DOGECOIN!
Suppose a Govt such as USA starts to worry about bitcoin. Despite the touted protections and safety, there are a million ways and more to trash the blockchain and a cryptocurrency. Just one recent example of a very large Bitcoin sale order crashed the value. Who can forget the flash crash of ETHEREUM.
Value of its currency is strategically central to the defense of the country and its social well being. IT WILL BE DEFENDED.
SHOULD YOU DO IT
Philosophically speaking governments should be serving the people. Governments don't do that. They control and manipulate people for their own power. They forget that history has proven time and again that power is always with the people.
The struggles will be great but as public adoption widens, there is nothing a government can do to stop cryptocurrency. Smart governments will adopt it. The risk is very little IN THE LONG RUN.
CONSIDER ALSO THE FOLLOWING: The cryptos are not backed by another asset. Their value stems from digital trust and inherent anonymity and ease of transaction. If a crypto currency has a market cap and no more if it can be created so it's value increases relative to Fiat currency as more people adopt it.
A fiat currency loses value over time. What was paid for a job 30 years ago is not the same today and won't be 30 years from mow. You will get paid a whole lot more in the Fiat currency sometime down the road because the currency has lost its value. This in turn will increase the relative value of the crypto currency against the Fiat currency . But there has to be a balance found somewhere . When the balance lies is mere speculation .
Some have said that one Bitcoin may soon equal $1 million. If this happens in your life time then it means that America is in ruins and do you have a whole lot more to worry about than the value of your bitcoin. So manage your expectations.
A lot of people with open orders on exchanges lost their money in a few moments when ETHEREUM flash crash happened. This leads to the next question.
HOW SHOULD I DO IT
If you are not a trader and most of us are not, I suggest the following
- Don't go chasing stupid coins. Stick with the established ones. Don't chase ICOs except if you have money collecting dust.
- Don't leave open orders on exchanges
- Buy cryptos and store it in cold storage.
- Don't fret about the dips. See it as opportunity to buy more.
- Don't worry about timing. You can never time it right.
SO GET IT ANF FORGET THAT YOU HAVE IT UNTIL THE RIGHT TIME COMES. AND WHEN YOU ARE RICH DONT FORGET ME.
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