Christine Lagarde, head of the IMF, has just issued an ominous challenge to cryptos: banks might soon start issuing their own digital currencies.
Perhaps you’ve heard of Bitcoin, Ethereum, or a range of other cryptocurrencies. Or maybe you have no idea and have only recently stumbled upon ‘cryptos’. It’s certainly a fascinating topic, and one that is getting a lot of attention in the financial world.
So, what exactly is a cryptocurrency?
A crypto is a digital form of money. You can’t physically hold or touch this money as it is only stored and recognised online. What makes cryptos unique is that they use a system called the ‘blockchain’.
This blockchain is a digital record of every transaction ever made for a crypto. It operates on a peer-to-peer network, making it completely decentralised. What this means is that you don’t need a third-party, like a bank, to facilitate a transaction.
Better yet, it’s faster, cheaper, and can also be more secure than banks!
Where did it all come from?
The first cryptocurrency was made in 2009 — bitcoin. It’s the most well-known crypto, and also the most valuable (at time of writing).
Bitcoin had small beginnings. In June 2009, one bitcoin was worth US$0.0001. Today, one bitcoin is worth thousands of US dollars.
It’s made some people a very, very large sum of money.
However, at its core, bitcoin isn’t meant to be a financial asset. It’s meant to replace money as we know it. And to an extent it already has.
Today you can purchase goods from some retailers online or in-store using bitcoin. You can even buy a luxury car or house with bitcoin. And every day more goods and services are being listed in bitcoin.
One day we may be using bitcoin for all our financial needs.
Bigger than bitcoin
However, there is more to it than just bitcoin. There are now over 1,100 cryptocurrencies in circulation, and new ones are added almost every day.
Now, not all of them are successful, and only nine current cryptos have a valuation over US$1 billion. But the fact remains that any one of these cryptos could take-off at any moment.
The reason for both the volatility and impressive gains is down to the fact that the blockchain technology, which underpins all cryptos, is still very new.
One brilliant idea could result in the next Amazon.com, Inc. [NASDAQ:AMZN] or Facebook, Inc. [NASDAQ:FB]. The potential is huge.
It’s why cryptocurrencies have earned a reputation for being the single most exciting financial opportunity around right now.
And we’re committed to bringing you all the latest developments and news. We aim to keep it simple and avoid the jargon. Crypto news for the average Aussie — because you can’t afford to miss out.
But, of course, there are risks.
Crypto’s are risky business
There are no ifs, buts or maybes. Cryptos are very risky. No regulators, no safety net, and no rules. We call it the Wild West of investing — and for good reason. We’ve never seen volatility like this.
This isn’t the investment to put your life savings into. This is like nothing you will ever see in the stock markets. The gains are potentially big, but so too are the losses.
But, if you’re willing to learn, and willing to take on some risk, this could be a once-in-a-lifetime opportunity — a cryptocurrency revolution.
The only question is: Are you willing to join?
There’s nothing quite as polarising as cryptocurrency. You could survey 100 people; most wouldn’t be able to name anything outside of bitcoin.
The American dollar is a success because we have a strong and stable system. But is it really? We go behind the myth, and what we find isn’t pretty.
Any attention that the mainstream has given blockchain has been mostly negative. It’s too new…too radical…too different…and for many, too hard to understand.
The excitement has died down…or at least that’s what it looks like on the surface. While crypto prices are barely moving, there is a lot going on in the background.
From cryptocurrencies to gold, there’s never been a better time to be an investor. But be warned: it’s a wild jungle of opportunity and risk out there.
There was quite a row going on Twitter all last week. In case you missed it, it started with Nouriel Roubini’s comments on crypto during a US senate hearing.
Madrid and Barcelona — Spain’s two main cities — are major rivals. But there is one thing these two cities agree on: they both want their own digital currency.
Nobody wants to get rich slowly. Not millennials, not generation X, not even baby boomers. It’s why there was so much demand for bitcoin last year.
To many, bitcoin is not an effective store of value or unit of account. And it should be easy to reason why…it’s crazy volatile.
If cryptocurrencies are dead in the water, why haven’t they gone to zero?Why did the freefall stop around March? Maybe Ethereum’s founder, Vitalik Buterin, has the right idea…
When cryptocurrencies like bitcoin were created, the dark world of crime issued a worldwide sigh of relief. At least, that’s what the mainstream suggests.
Bitcoin is the poster child for the broader crypto world. It is also one of the most inaccurately reported topics I’ve ever seen. But it’s pretty easy to sift through the BS.
Today, I’m excited to discuss what I believe to be the most valuable opportunity to rise out of the crypto scene — tokens.