Getting into crypto currencies and block chain technology
The internet of valueFast forward to today and I can say how wrong I was to think this. Today I understand that block chain technology and crypto currencies are not (always) a scam. In fact, I believe the underlying technology will change the way we run our economies, the same way the internet and mobile devices changed the way we communicate. I believe that block chain technology will facilitate the internet of value. My brother still has his encrypted backup of his wallet, but he has forgotten the password needed to decrypt the wallet. So at the current rate of the Bitcoin he is missing out of 4000 to 5000 USD that the wallet is worth today.
With great power comes great responsibilityAnd this is the thing with the internet of value. We, the people, are given the power to control our own money. The flip side is that we really need to be in control our selves or we will potentially lose all our stored value, kinda like my brother did. There is no counter party, like a bank to pick up the pieces, when we lose our pin codes, etc.. On the other hand, if we learn to control our own money and stores of value, we will need less banks and we will have to spent less money on such institutions. All this takes is knowledge, education and specifically a basic understanding of how the internet, computers and computer programs work. This is why I am such an advocate for everyone to learn how to code. Not the coding it self, but the understanding it gives on how technology works is essential to being a in control of the internet of value.
It is still earlyWe are still at the beginning of a very disruptive revolution. Bitcoin is just the beginning, like Altavista was just the first search engine and failed before Google came along and Myspace was there before Facebook started dominating the social media space. So Bitcoin has been doing great, but it is not the only game in town and it may well not be the end game. There are alternative crypto currencies developing rapidly. And the use of block chain technology is not limited to currencies only, but can be used for any exchange of value. It can potentially change the way we handle property exchange (of houses, stocks, cars, etc.), insurance, or anything else that would normally require some sort of contract.
It's not a bubble, it's volatileAt first in 2011, I thought Bitcoin was a scam. Now I believe it is something good. Many people say it is to good to be true and that a bubble is forming and that you should short anything crypto. Although I was skeptical and I am still cautious towards investing in crypto, I do not agree with the view that there is a bubble forming. However the market is very young and therefore very volatile. Trader Francis Hunt explains nicely the difference between a bubble like the Tulip Mania in 17th century Holland, the Dotcom Bubble and the current developments in the crypto space.
Francis Hunt: Bubbles, Why Crypto's are not & neither were Tech stocks
Three easy ways I participate in the crypto spaceBuying some bitcoins, like my brother did, is not the only way to participate in the crypto space, but it certainly is a good start. I currently participate in the crypto space in the following three ways: I mine, I invest and I trade.
MineBy mining crypto currencies I am helping to build and maintain the crypto's infrastructure and in return I am rewarded some of the coins mined, or I will receive some of the fees paid for the transactions. Mining can be done on your own hardware using MinerGate or you can rent some Hashing Power in the cloud.
Cloud Miners I use:
- Hashflare (use this link to get 10% bonus)
- Genesis Miner; use this promo code to get 3% discount: reKqzP
Also checkout my resources page for up to date references to source / services I use.