Cryptocurrencies

This is a subject that’s been growing big and shouldn’t be ignored. I had some mixed interest back in 2012 and had I been just a little more active, I could have a lot of money by now. I considered it a little shady to make money out of nothing that way, and I had some aversion connected to making money, so I didn’t. You must know however that unless something big changes bitcoins and other cryptocurrencies are coming to your town with momentum, and I think that’s good news. Moreover, it still isn’t late to make money through them, if you want to. You just need to understand how the system works and devote a little energy to it.

Cryptocurrencies are essentially currencies of varying value that get distributed on the internet. They are currently decentralized and unlimited and even you can make your own. How do you make your own? Because those currencies are not controlled by banks, each one acts as a part of a collective bank, creating and distributing that currency as well as by participating in transactions –all that by lending his computer’s power. His computer performs the tasks of a bank, and collective computer power creates and distributes those currencies. Right now you can generate or buy such currencies as well as cash out in national fiat currencies. There are even debit cards that you can use with normal ATMs, online shopping and anything else a normal debit card can do.

It’s all currently fully legal (only the debit cards are not allowed in the US, in particular). And it can be a game changer on both an individual, national and international level, as banks and states lose control of the distribution and withholding of money, and that get’s passed to the combined control of individuals. Most importantly all transactions can be made anonymously and for little to no charge at all.

The value of a bitcoin used to be 0$ in 2009 and it is now around 2300$. And although it was ridiculously easy to create or buy them back then it is much harder now. However, alternative cryptocurrencies are constantly being created and they follow a similar modus operandi, and you can trade one for another. Their value goes up as they gain in popularity as well as in functionality. For example, around the time the first bitcoin ATM was made, bitcoin’s value skyrocketed. I’d assume the same will be occurring with other cryptocurrencies as well. Logically, only if they got prohibited through legislation would their value drop significantly. At the moment they’re so legal you have to declare them as property to your tax office (at least in the US), although the declaring them can be almost voluntary since the possessing them can be completely anonymous, and from hard to impossible to track.

A word of caution: This can be very profitable BUT some of those alternative cryptocurrencies might be bubbles too. Like with shares of companies, some profit by buying cheaply and then selling expensively which creates instability in their value. The total value of cryptocurrencies is now around 84 billions and it’s been growing on an almost steady pace. And some own a significant portion of that currency to control a significant portion of the game.

Another thing you could take into consideration is that -logically- as those currencies gain in popularity and functionality, the popularity and functionality of the limited, controlled, inferior national (fiat) currencies will be decreasing. And that’s a good reason why you should study this matter, for it might be of help should such a thing occur. It might take long to occur, or not that long. And it wouldn’t harm if you had 5$ as backup in cryptocurrencies.

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