Crypto TREND 2017-01

Everyone has heard how Bitcoin and other cryptocurrencies have made millionaires who they bought just a year ago. Profits of 1000% or more are not only possible, but have been commonplace with many of these cryptocurrencies. Someone who bought Bitcoin in May 2016 for less than $500 would have made a 1400% profit in about 17 months. Then in the last few days we saw Bitcoin lose almost $1,000, so to say that these crypto currencies are volatile would be a huge understatement.

Since Bitcoin’s inception in 2008, we at Trend News have been skeptical of cryptocurrencies’ ability to survive, given that they present a very clear threat to governments who want to watch and tax all transactions. But while we may still be wary of real cryptocurrencies, we are well aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will be a major disruptor in the way data is managed and that it will affect all sectors of the global economy, much like how the Internet impacted the media.

Here are some questions and answers to get you started…

Q: What are cryptocurrencies?

The best known cryptocurrency (CC) is BITCOIN. It was the first CC, started in 2008. Today there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all “virtual”. There are no “physical” coins or currency.

Q: How do CCs work?

CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN ​​technology. Because each Blockchain database is widely distributed, it is believed to be immune to hacking as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often called “miners”, who validate transactions. A CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more details in upcoming news posts.

Q: What is BLOCKCHAIN?

Blockchain is the technology that underpins all CCs. Each transaction of purchase, sale or exchange of CC’s is entered in a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry as transactions can be executed quickly and easily, with fees reduced or eliminated. The technology is also being examined for applications in many other industries.

Q: Are CC Exchanges regulated by the government?

For the most part, the answer is NO, which, for some users, is a huge draw of this market. It’s the “Wild West” at the moment, but governments in most developed countries are looking at this market to decide what regulation may be necessary. A big decision is whether to treat CC as a currency or as a commodity/value. Canada and the US have so far declared CCs legal, however the situation remains fluid on tax and reporting implications. Crypto TREND will follow and report on these developments.

Q: How do I invest in this market?

You can buy, sell and trade CC using the services of specialized “exchanges” that act as a brokerage. You start by selecting an exchange, setting up an account, and transferring fiat currency to your account. You can then place your CC BUY and SELL orders. There are many exchanges around the world. Opening an account is quite simple and all of these exchanges have their own rules about initial funding and withdrawals.

Crypto TREND will recommend CC Exchanges in the future.

Q: Where do I keep my CC?

In order to have the freedom to move your crypto and pay bills, you will need to have a digital wallet. These wallets come in various formats such as desktop, cloud-based, hardware (USB), mobile phone, and paper. Many of them are FREE, however security is an important factor as no one wants to lose their wallet or have it stolen. Crypto TREND will recommend digital wallets in the future.

Q: What can I do with my CC?

In addition to investing in CC products, you can also use cryptocurrencies for some financial transactions, such as money transfers and bill payments. The list of companies that accept cryptocurrencies is growing rapidly and includes big names like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.

Q: What’s next?

As we begin, we will keep each of the Crypto TREND articles brief and keep the scope of each as limited as possible. As noted above, we believe that cryptocurrency technology will be a game changer and that investment opportunities

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