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Why Many Educated People Think Bitcoin Is a Fad

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It was my senior year of high school and one of our teachers called us in a room full of new computers. We were instructed to sit down and "surf the web."

"Surf the web?" What did that even mean? At the time I did not live anywhere close to the beach and could not really understand this concept of web surfing. It was clunky and pages were slow to load. There was no way that this was going to be useful. I went back to the library later that day during study hall and read the newspaper. You know, the ones you see in hotel lobbies and occasionally outside of restaurants.

All kidding aside, when people are used to doing something a certain way for so long it really becomes part of who they are. I have operations management experience and every time I attempted to change the process or way of doing something to make it more efficient I was typically met with resistance.

Some people are more more married to certain ideologies than others. We see it everywhere. I see it with the older generation at church not liking the newer music. Or, for example, the National League baseball purists despising the idea of ​​the designated hitter. How about even simple things like when Facebook or Twitter changes the user interface? Do not mess with my timeline! LOL.

Why then should it be any different for Bitcoin or any cryptocurrency? I talk to people every day who are educated and successful and yet still can not wrap their heads around cryptocurrency. To me it is like explaining how to surf the web to people in 1994.

For centuries people have had it ingrained in their brains that money issued by the government meant it had value.

Fiat currency (money issued by a government – USD, Euro, Ruble, etc) has this connotation behind it that because the government printed this it MUST be of value. While it is true that our dollars have value, most people think it is because it is backed by something. As a society we have decided that shiny minerals we dig up from the ground are "valuable" and therefore so is our money.

When economies are humming along and governments are not overbearing and people have a relative "trust" in them then yes, fiat currency works quite well. What happens when we tip that scale and things do not go so well? Economists have varying opinions on that, but most of the time governing bodies will step in and try to stimulate the economy. This is done by manipulating the economy via tactics such as lowering interest rates or quantitative easing. Governments love to turn on the printing press when things go bad.

These types of scenarios can lead to distrust, or far worse. Recessions can turn into even bigger problems such as price controls or food shortages. Just ask the people of Venezuela who are demonstrating in the streets on a daily basis. This is because their government backed Bolivar now has seen triple digit inflation and it's not even worth the paper it's printed on. Let that sink in.

The distrust of centralized banks, governments and corporations has led to people seeking financial refuge elsewhere. It can be incredibly difficult and costly to move money around the world as well. I used to manage banks and the process was tedious and required many eyesballs on it for verification purposes.

Blockchain technology is changing all that. It is completely decentralized meaning that no one President, Dictator, government or corporation can control it. The online digital accounting ledger known as the blockchain maintains trust and multiple persons nearly instantly verifying transactions for each other. People are financially incentivised to do so. It's a genius peer to peer operation that relationships on people's greed to verify each transaction. Because of this, blockchain transactions are also the safest and most secure transactions ever invented.

What the internet did for information, blockchain technology is doing for transactions. Bitcoin is not backed by any shiny material in the ground, but by something far greater. The lack of trust in traditional fiat currency is causing people from all over the world to move their money into cryptocurrencies. It is a secure and reliably easy method of payment. I can send Bitcoin to anyone in the world for almost no fee at all and they receive it instantaneously. They can keep it in Bitcoin or they can instantly trade it on an exchange back into the local currency of their choice.

Not only that, but merchants around the world are starting to take notice and many are now accepting Bitcoin as a method of payment themselves. If I owned a store, I would be BEGGING people to pay me in Bitcoin. Those who accepted Bitcoin since the start of 2017 have now TRIPLED their profit.

And it is only getting started. Right now only about 1% of the population is confident in conducting regular transactions with Bitcoin. Imagine when that number moves to 3%. Then to 10%.

What many people do not realize is that the more people that jump into cryptocurrency the more value it will have. This is due to the amount of Bitcoin that will ever be created is FINITE. And you can not have a Ponzi scheme with a finite resource. That number happens to be 21,000,000. That's it. Once that happens there will never be another Bitcoin created again.

Because we have 7 billion people on the planet and probably only 15 million people invested in cryptocurrency, there will come a day that 1 Bitcoin alone will be more than enough to retire on.

Now you can certainly continue singing those same songs. In fact, I like the occasional hymn now and again, but with more guitar. You can continue to fight something you do not fully understand or dismiss it as a fad while Fortune 500 companies and governments are starting to realize it's not.

Let me close with this. Occasionally we all put down that newspaper in study hall and began to catch up on the news and other interests we have by surfing this web. You can not argue that or you would not be reading this article!

Thank you for reading this and, as always, I would love to hear from you.

How to Trade Cryptocurrencies – The Basics of Investing in Digital Currencies

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Whether it’s the idea of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. If you’re new to the concept and wondering what’s going on, here are some basic concepts and considerations for investment in cryptocurrencies.

What cryptocurrencies are available and how do I buy them?

With a market cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides these two currencies, there are a number of other options as well, including Ripple ($28B), Litecoin ($17B), and MIOTA ($13B).

Being first to market, there are a lot of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a crypto marketplace is where you will find all the digital currencies in one place. Here is a list of exchanges according to their 24-hour trade volume.

What options do I have to store my money?

Another important consideration is storage of the coins. One option, of course, is to store it on the exchange where you buy them. However, you will have to be careful in selecting the exchange. The popularity of digital currencies has resulted in many new, unknown exchanges popping up everywhere. Take the time to do your due diligence so you can avoid the scammers.

Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and several other digital currencies as well.

What’s the market like and how can I learn more about it?

The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suited for a long-term play.

There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital currencies aim to disrupt the traditional currency and commodity market. While these currencies still have a long way to go, the success of Bitcoins and Ethereum have proven that there is genuine interest in the concept. Understanding the basics of cryptocurrency investment will help you start in the right way.

Crypto TREND 2017-01

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Everyone has heard how Bitcoin and other crypto currencies have made millionaires of those who bought as recently as a year ago. Gains of 1,000% or more are not just possible, they have been common place with many of these crypto currencies. Someone who bought Bitcoin in May 2016 at less than $500, would have had a gain of 1,400% in about 17 months. Then over the past few days, we saw Bitcoin lose almost $1,000, so to say these crypto currencies are volatile would be a massive understatement.

Since the inception of Bitcoin in 2008, we at Trend News have been skeptical of crypto currencies’ ability to survive, given that they present a very clear threat to governments who want to see and tax all transactions. But while we may still be cautious on the actual crypto currencies, we are very aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will be a significant disruptor in how data is managed, and that it will impact every sector of the global economy, much like how the internet impacted media.

Here are some questions & answers to get us started…

Q: What are Crypto Currencies?

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

Q: How do CC’s work?

CC’s are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is widely distributed, it is thought 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. One CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more details in upcoming news publications.

Q: What is BLOCKCHAIN?

Blockchain is the technology that underpins all CC’s. Each transaction for the purchase, sale, or exchange of CC’s is entered into 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, reducing or eliminating fees. The technology is also being examined for applications in many other industries.

Q: Are CC Exchanges regulated by government?

For the most part, the answer is NO, which, for some users, is a big attractions of this market. It is the “wild west” right now, but governments in most developed countries are examining this market to decide what regulation may be needed. A big decision is whether to treat CC’s as a currency or a commodity / security. Canada and USA have so far declared that CC’s are legal, however the situation remains fluid as for reporting and tax implications. Crypto TREND will be following and reporting on these developments.

Q: How do I invest in this market?

You can buy, sell, and exchange CC’s 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 into your account. You can then place your BUY and SELL CC orders. There are many exchanges around the world. Opening an account is fairly simple and these exchanges all have their own rules about initial funding and withdrawals.

Crypto TREND will be recommending CC Exchanges in future.

Q: Where do I keep my CC?

To have the freedom to move your crypto currencies around, and to pay bills, you will need to have a digital wallet. These wallets come in several formats, such as desktop, cloud based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor as no one ever wants to lose their wallet or have it stolen. Crypto TREND will be recommending digital wallets in future.

Q: What can I do with my CC?

As well as investing in CC products, you can also use crypto currency for some financial transactions, such as money transfers and paying bills. The list of companies accepting crypto currency is growing fast, and includes big hitters like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.

Q: What’s next?

As we start off, we will keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As we noted earlier, we believe that the crypto currency technology will be a game changer and potential investment opportunities like this come by once or twice in a lifetime. Make no mistake, early investing in this sector will be only for your most speculative capital, money that you can afford to lose.

Even if you are not wanting to invest at this time, gaining an early understanding of this new disruptive technology will put you in an advantageous position to profit from our recommendations as we move forward.

Expect to see more news and specific recommendations from Crypto TREND as we start this journey into what may seem to be a foreign jungle at first. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.

Stay Tuned!

Mommy, Where Do Bitcoins Come From? Bitcoin Mining Explained

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"Mommy, where do Bitcoins come from?" Well, you see, when a shiny young Bitcoin catches the eyes of an ambitious miner, and because they love each other very much …

Wait, that's obviously too difficult to solve here. Beside, my whole goal is to keep things simple. Anywhere, Bitcoins are made by solving complex math problems. This is done by a powerful machine that is built to solve these math problems. This process is called mining. People who own these machines to make money mining Bitcoins are called miners. When a batch of problems is solved it becomes known as a block. Blocks are verified by other users and once they are verified, they get added to what is called the block chain. This chain continues to grow with a new block being added to it roughly every 10 minutes. This chain is really just a master ledger that will continue to grow and never end.

The very powerful machines that mine zap a lot of power and drive up the miner's monthly utility bill. The reason it takes so much power is the genius of the mathematics involved. It requires the mining machine to perform complex cryptographic algorithms. Once a math problem is solved by the machine, a block of coins is birthed. Every time 210,000 blocks have been created, the reward to the miner is halved. It takes 4 years to accomplish this. So it's kind of like a Bitcoin Olympics. Currently the block reward is 12 Bitcoins (on June 23, 2020 the reward will only be 6 coins). Those coins goes to the miner machine machine was the lucky lottery winner at that time. There is a winner every 10 minutes. There are also a lot of miners competing out there too. Said miner now has something of value. Mine enough coins and you pay your electricity bill and then some.

There is also another way to mine. It's called cloud mining. With this type of mining you are paying to use someone else's network and that cuts into your profits significantly. The positives to this method are that it does not require using your electricity or even buying a machine.

Sounds good to me. I want to start mining now. Is it a good idea and can I generate passive income on a regular basis? Possibly. Hold tight for now and you can make that call later.

Let's try to break this down.

Going back to the original way of machine mining, you've got to start with buying a quality mining machine. That would set you back about $ 2,000. Here is a picture of a good machine (Antminer S9 from Bitmain) capable of creating a high hash rate of 14 TH / s. 1 TH / s is 1,000,000,000 hashes per second. This machine does 14 times that. That's a lot of hashing power. A hash is just a really long number that the machine creates each time trying to solve the algorithm. Again, to use my lottery analogy, all these machines are out there hashing away hiring to be the next winner.

Then, your chances of winning are getting incrementally more difficult with more competition. Further complicating this matter is that each time a math problem is solved, the next problem gets incrementally more difficult to solve. The Bitcoin network difficulty changes roughly every two weeks or 2,016 blocks. The number of Bitcoins that will ever be created is finite. That number happens to be 21,000,000. Once we hit that number there can never be another Bitcoin mined again. However, the block chain itself will continue to expand because it is used to verify each transaction or purchase.

Remember that pseudonymous Satoshi Nakamoto I wrote about as well? Did you know that today's math problems are more than 70,000 times more difficult for the machines to solve than they were we mined the 1st Bitcoin back in 2009 ?! The estimate is that the final coin will be mined in 2140 because the system halves every four years (210,000 blocks). There have already been 16,400,000 coins mined (78%) and each coin from here on out will be mined at a much slower rate. Yes, you read that right. Basically 80% were mined in the first 8 years and it will take well over 100 years to mine the final 20%. If any of my great, great, great grandchildren are reading this I hope you are sitting pretty with our family's Bitcoins now valued at 220,000 per Bitcoin. We can all dream right!

Buying a machine for mining or purchasing a mining cloud contract is risky. While there are some great success stories out there, be sure to research them thoroughly before deciding if mining is right for you. For every person making money, there are plenty of people losing money.

By the way, a great place to see all of the cryptocurrencies out there and their total coins and market cap, Coin Market Cap is a great resource. You can see all 700 plus fly-by-night altcoins out there. An altcoin is just another way of saying any cryptocurrency coin that is not Bitcoin. By now you probably know that Bitcoin is like the Rose Bowl, the Granddaddy of them all! I would really try to limit my focus and research on the top 10 for now. Not that there will not be stories of success from one of the near worthless ones now. It's just that finding one is like picking the right penny stock. Sticking with established companies that are being recognized by the mainstream analysts is a much safer play. The same goes for the exchange you use to buy, sell, and trade. That's why I use Coinbase to make my trades as they are the most trusted, secure, and convenient exchange. They also have the most thorough vetting process when it comes to adding altcoins.

Here's a recap of the key points from this article:

-Bitcoins are created from mining

-Mining is done by powerful machines that solve complex math problems. You can also purchase contracts called cloud mining if you do not want to buy a machine.

– The problems get harder as coins are mined and the rate of production slows down

-As of May 2017, there are only 72 Bitcoins mined per hour (12 every 10 minutes)

-On June 23, 2020, this will be halved again down to only 6 created every 10 minutes

-Nearly 80% of Bitcoin's finite number 21,000,000 coins have already been mined

-Competition among miners and increasingly complex math problems are making it more difficult to turn a profit mining

-The final coin is estimated to be mined in 2140

How to Buy Bitcoin – Step One

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The best way to learn about bitcoin, is to jump in and get a few in your "pocket" to get a feel for how they work.

After the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.

There are a few things to learn: getting and using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.

Preparation

Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets ever, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exports to keep your money safe.

What is a wallet?

It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss * twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

* The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

What do you need to know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly into that person's wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out – the address and QR code are both for my conflicts page. Feel free to donate!

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of your computer's memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it's a good idea.

Bitcoin Qt

  • The original wallet.
  • This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
  • Outside of the time it takes to sync, this is a very easy to use option.
  • Search for Bitcoin Qt wallet download to find their site.

Armory

  • Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
  • Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
  • Search for Bitcoin Armory Wallet to find their site.

If you do not want to have that much memory used or do not want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of bitcocin:

Multibit

  • A lightweight wallet that syncs quickly. This is very good for new users.
  • Search for Bitcoin Multibit Wallet to find their site.

Electum

  • In addition to being quick and light, this wallet allows you to recover lost data using a passcode.
  • Search for Bitcoin Electum Wallet to find their site.

After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You do not need the QR code if you do not want it, but if you run a business and you want to accept bitcoin, then all you'll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is http://faucet.bitcoin.st/ .

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuing coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them.

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), But they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly bitvisitor.com) have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you will not become a millionaire doing this. So, unless you are an junkie, I would recommend you move on. If you would like to try, simply Google "free bitcoins" or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can not happen, then there can not really be a bitcoin economy because retailers will not be able to use it. If retailers can not use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

  • When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he / she / they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore "verify" it. In the short term, miners are making most of their money by mining new coins (check the section on What are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.
  • In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

  • You may have a bitcoin Meetup in your area.
  • You can check out localbitcoins.com to find people near you who are interested in buying or selling.
  • Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.
  • See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

  • Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector's items.
  • Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you can not access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up an actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerging that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have changes and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known changes.

Thinking of Investing? Think the Bitcoin Way

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What is Bitcoin?

If you're here, you've heard of Bitcoin. It has been one of the largest frequent news headlines over the last year or so – as a get rich quick scheme, the end of finance, the birth of truly international currency, as the end of the world, or as a technology that has improved the world. But what is Bitcoin?

In short, you could say Bitcoin is the first decentralized system of money used for online transactions, but it will probably be useful to dig a bit deeper.

We all know, in general, what 'money' is and what it is used for. The most significant issue that witnessed in money use before Bitcoin relates to it being centralized and controlled by a single entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym 'Satoshi Nakamoto' to bring decentralization to money on a global scale. The idea is that the currency can be traded across international lines with no difficulty or fees, the checks and balances would be distributed across the entire globe (rather than just on the ledgers of private corporations or governments), and money would become more democratic and equally accessible to all.

How did Bitcoin start?

The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by Satoshi, an unknown researcher. The reason for its invention was to solve the issue of centralization in the use of money which relied on banks and computers, an issue that many computer scientists were not happy with. Achieving decentralization has been attempted since the late 90s without success, so when Satoshi published a paper in 2008 providing a solution, it was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet users and has given rise to thousands of 'altcoins' (non-Bitcoin cryptocurrencies).

How is Bitcoin made?

Bitcoin is made through a process called mining. Just like paper money is made through printing, and gold is mined from the ground, Bitcoin is created by 'mining'. Mining involves solving of complex mathematical problems relating blocks using computers and adding them to a public ledger. When it began, a simple CPU (like that in your home computer) was all one needed to mine, however, the level of difficulty has increased significantly and now you will need specialized hardware, including high end graphics processing unit (GPUs), to extract Bitcoin.

How do I invest?

First, you have to open an account with a trading platform and create a wallet; you can find some examples by searching Google for 'Bitcoin trading platform' – they generally have names involving 'coin', or 'market'. After joining one of these platforms, you click on the assets, and then click on crypto to choose your desired contexts. There are a lot of indicators on every platform that are quite important, and you should be sure to observe them before investing.

Simply buy and hold

While mining is the surest and, in a way, simple way to earn Bitcoin, there is too much hustle involved, and the cost of electricity and specialized computer hardware makes it inaccessible to most of us. To avoid all this, make it easy for yourself, directly input the amount you want from your bank and click "buy ', then sit back and watch as your investment increases according to the price change. exports platforms available today, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc) and different crypto coins (Bitcoin, Ethereum, Litecoin, etc).

Trading Bitcoin

If you are familiar with stocks, bonds, or Forex exchanges, then you will understand crypto-trading easily. There are Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can choose from. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, example BTC-USD means trading Bitcoins for US Dollars. Keep your eyes on the price changes to find the perfect pair according to price changes; the platforms provide price among other indicators to give you proper trading tips.

Bitcoin as Shares

There are also organizations set up to allow you to buy shares in companies that invest in Bitcoin – these companies do the back and forth trading, and you just invest in them, and wait for your monthly benefits. These companies simply pool digital money from different investors and invest on their behalf.

Why should you invest in Bitcoin?

As you can see, investing in Bitcoin claims that you have some basic knowledge of the currency, as explained above. As with all investments, it involves risk! The question of whether or not to invest depends entirely on the individual. However, if I were to give advice, I would advise in favor of investing in Bitcoin with a reason that, Bitcoin keeps growing – although there has been one significant boom and bust period, it is highly likely that Cryptocurrencies as a whole will continue to increase in value over the next 10 years. Bitcoin is the largest, and most well known, of all the current cryptocurrencies, so is a good place to start, and the safest bet, current. Although volatile in the short term, I suspect you will find that Bitcoin trading is more profitable than most other ventures.

Coinbase: A Bitcoin Startup Is Spreading Out to Capture More of the Market

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The price of bitcoin skyrocketed in the year 2017. Coinbase, one of the world's largest cryptocurrency exchanges, was in the right place at the right time to capitalize on the spike in interest. Even so, Coinbase is not interested in taking its crypto gains for granted. To stay ahead in a much larger cryptocurrency market, the company is plowing money back into their master plan. Up until 2017, the company's revenue was reported at $ 1 billion and over $ 150 billion of assets were traded across 20 million customers.

Coinbase, a San Francisco based company, is known as the leading cryptocurrency trading platform in the United States and with its continued success, landed at the No. 1. 10 spot on the CNBC Disruptor list in 2018 after failing to make the list the previous two years.

On their path to success, Coinbase has left no stone unturned in poaching key executives from New York Stock Exchange, Twitter, Facebook, and LinkedIn. In the current year, the size of its full-time engineering team has almost doubled.

Earn.com was bought by Coinbase this April for $ 100 million. This platform allows the users to send and receive digital currency while replying to mass market emails and completing micro tasks. Currently, the company is planning to bring a former Andreessen Horowitz venture capitalist, Earns founder and CEO as its first-ever chief technology officer.

According to current valuation, Coinbase evaluated itself at about $ 8 billion when it set out to buy Earn.Com. This value is much higher than the valuation of $ 1.6 billion which was estimated at the last round of venture capital financing in the summer of 2017.

Coinbase Declines to comment on its valuation since the fact that it has more than $ 225 million in funding from top VC's including Union Square Ventures, Andreessen Horowitz and also from the New York Stock Exchange.

To meet the needs of institutional investors, the New York Stock Exchange is planning to start its own cryptocurrency exchange. Nasdaq, a rival of NYSE is also contemplating a similar move.

• Competition is Coming

As competitiveness organizations look to take a bite out of the Coinbase's business, Coinbase is looking to other venture capital opportunities in an attempt to build a moat around the company.

Dan Dolev, a Nomura instant analyst, said that Square, a company run by Twitter CEO Jack Dorsey could eat into Coinbase's exchange business because it started trading cryptocurrency on its Square Cash app in January.

According to the estimations by Dolev, Coinbase's average trading fees were grossly 1.8 percent in 2017. This high could drive the users to other cheaper exchanges.

Coinbase is looking to become a one-stop shop for the institutional investors while hedging its exchange business. To lure in that white glove investor class, the company announced a fleet of new products. This class of investors has been especially cautious to move into the volatile cryptocurrency market.

Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are the products launched by the company.

Coinbase notes that there are billions of dollars in institutional money which can be invested in the digital currency. It already has the custody of $ 9 billion in customer assets.

Institutional investors are concerned about security despite knowing Coinbase has never suffered a hack like some other global cryptocurrency exchanges. Coinbase president and COO said that the impetus of launching the Coinbase custody last November was the lack of trusted custodian to safeguard their crypto assets.

• Currently Wall Street Shifts from Bashing Bit to Cryptocurrency Backer

According to latest data available from Autonomous Next Wall Street's, interest in cryptocurrency seems to be increasing. At present, there are 287 crypto hedge funds, while in 2016, there were only 20 cryptocurrency hedge funds that implemented. Goldman Sachs has even opened a cryptocurrency trading desk.

Coinbase has also introduced Coinbase Ventures, which is an incubator fund for early-stage startups working in the cryptocurrency and blockchain space. Coinbase Ventures has already accrued $ 15 billion for further investments. Its first investment was announced in a startup called Compound which allows one to borrow or lend cryptocurrency while earning an interest rate.

At the beginning of 2018, the company launched Coinbase Commerce, which allows merchants to accept major cryptocurrency for payment. Another bitcoin startup was BitPlay, which recently raised $ 40 million in venture money. Last year BitPlay processed more than $ 1 billion in bitcoin payments.

The proponents of blockchain technology believe that in the future, cryptocurrency will be able to eliminate the need for central banking authorities. In the process, it will lower costs and create a decentralized financial solution.

• Regulatory Security Remains Intense

To keep access limited to four cryptocurrency, Coinbase has drawn a lot of criticism. But they must tread carefully while the US regulators deliberate on how to police certain uses of the technology.

For cryptocurrency exchanges like Coinbase, the matter of concern is whether or not cryptocurrency securities which would be subject to Securities and Exchange Commission jurisdiction. Coinbase is admittedly slow to add new coins because the SEC announced in March that it would apply security laws to all cryptocurrency exchanges.

Wall Street Journal reported that Coinbase met the SEC officials to register itself as a licensed brokerage and electronic trading venue. In such scenario, it would become easier for Coinbase to support more coins and also to comply with security regulations.

Things That Look Positive for Cryptocurrencies

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While there have been market corrections in cryptocurrency market in 2018, everyone agreements that the best is yet to come. There have been a lot of activities in the market that have changed the tide for the better. With proper analysis and the right dose of optimism, anyone who is invested in the crypto market can make millions out of it. Cryptocurrency market is here to stay for the long term. Here in this article, we give you five positive factors that can spur further innovation and market value in cryptocurrencies.

1. Innovation in scaling

Bitcoin is the first cryptocurrency in the market. It has the maximum number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without issues. Its major bottleneck is that it can handle only six to seven transactions per seconds. In comparison, credit card transactions average at few thousands per second. Obviously, there is scope for improvement in the scaling of transactions. With the help of peer to peer transaction networks on top of the blockchain technology, it is possible to increase the transaction volume per second.

2. Legitimate ICOs

While there are cryptocoins with stable value in the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are intended to help the Internet Of Things market increasing power contracts. Some coins address the issue of cybersecurity by giving encrypted digital vaults for storing the money.

New ICOs are coming up with innovative solutions that disrupt the existing market and bring in a new value in the transactions. They are also gathering authority in the market with their easy to use exports and reliable backend operations. They are innovating both on the technology side regarding usage of specialized hardware for mining and financial market side by giving more freedom and options to investors in the exchange.

3. Clarity on regulation

In the current scenario, most Governments are studying the impact of cryptocurrency on the society and how its benefits can be accrued to the community at large. We can expect that there may be reasonable conclusions as per the result of the studies.

Few Governments are already taking the route of legalizing and regulating crypto markets just like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. Abling regulations that boost cryptocurrency growth are expected to appear in 2018. This will potentially pave the way for widespread adoption in future

4. Increase in application

There is an intense enthusiasm for the application of blockchain technology in virtually every industry. Some startups are coming up with innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc. this will increase the number of merchants who are willing to transact in cryptocurrency which in turn boost the number of users.

The reputation of crypto assets as a transaction medium will be reinforced as more people trust in this system. Although some startups may not survive, they will positively contribute to the overall health of the market creating competition and innovation.

5. Investment from financial institutions

Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of fundamental institutional investments will fuel the next phase of growth of the cryptomarkets. It has captivated the fancy of many banks and financial institutions.

As the surprises and bottlenecks around cryptocurrency reduction, there will be more uptake from traditional investors. This will lead to a lot of dynamism and liquidity much needed for any growing financial markets. Cryptocurrency will become the deficito currency for transactions all over the world.

Online Bitcoin Trading: Discover The Keys To Earning A Formidable Income Trading Bitcoin

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Step 1 – Understanding Bitcoin And The Block-Chain

Bitcoin is a peer-to-peer payment system, otherwise known as electronic money or virtual currency. It offers a twenty-first century alternative to brick and mortar banking. Exchanges are made via "e wallet software". The bitcoin has actually subverted the traditional banking system, while operating outside of government regulations.

Bitcoin uses state-of-the-art cryptography, which can be issued in any fractional denomination, and has a decentralized distribution system, is in high demand globally and offers several distinct advantages over other treaties such as the US dollar. For one, it can never be garnished or frozen by the bank (s) or a government agency.

Back in 2009, when the bitcoin was worth just ten cents per coin, you would have turned a thousand dollars into millions, if you waited just eight years. The number of bitcoins available to be purchased is limited to 21,000,000. At the time that this article was written, the total bitcoins in circulation was 16,275,288, which means that the percentage of total bitcoins " mined " was 77.5%. at that time. The current value of one bitcoin, at the time that this article was written, was $ 1,214.70 USD.

According to Bill Gates, "Bit coin is exciting and better than currency". Bitcoin is a de-centralized form of currency. There is no longer any need to have a " trusted, third-party " involved with any transactions. By taking the banks out of the equation, you are also eliminating the lion's share of each transaction fee. In addition, the amount of time required to move money from point A to point B, is reduced formidably.

The largest transaction to ever take place using bitcoin is one hundred and fifty million dollars. This transaction took place in seconds with minimal fee's. In order to transfer large sums of money using a "trusted third-party", it would take days and cost hundreds if not thousands of dollars. This explains why the banks are violently opposed to people buying, selling, trading, transferring and spending bitcoins.

Only.003% of the worlds (250,000) population is estimated to hold at least one bitcoin. And only 24% of the population know what it is. Bitcoin transactions are entered chronologically in a 'blockchain' just the way bank transactions are. Blocks, meanwhile, are like individual bank statements. In other words, blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as 'completed' blocks are added to it with a new set of records. To use conventional banking as an analogy, the blockchain is like a full history of banking transactions.

Step 2 – Setting Up Your E Wallet Software Account

As soon as you create your own unique e wallet software account, you will have the ability to transfer funds from your e wallet to a recipients e wallet, in the form of bitcoin. If you would like to use a bitcoin ATM to withdraw funds from your account, essentially you will link your e wallet 'address' to the chosen ATM machines e wallet 'address'. To facilitate the transfer of your funds in bitcoin to and from a trading platform, you will simply link your e wallet 'address' to the e wallet 'address' of your chosen trading platform. In actuality, it is much easier than it sounds. The learning curve in relation to using your wallet, is very short.

To set up an e wallet, there are a myriad of company's online that offer safe, secure, free and turn-key e-wallet solutions. A simple Google search will help you find the right e wallet software for you, depending upon what your needs are exactly. Many people get started using a "blockchain" account. This is free to set up and very secure. You have the option of setting up a two-tier login protocol, to further enhance the safety and security, in relation to your e wallet account, essentially protecting your account from being hacked into.

There are many options when it comes to setting up your e wallet. A good place to start is with a company called QuadrigaCX. You can find them by doing a Google search. Quadrigacx employs some of the most stringent security protocols that currently exist. Forthermore, Bitcoins that are funded in QuadrigaCX are stored in cold storage, using some of the most secure cryptographic procedures possible. In other words, it is a very safe place for your bitcoin and other digital circles.

In order to withdraw money in your local currency, from your e wallet, you are required to locate a bitcoin ATM, which can often be found in local businesses within most major cities. Bitcoin ATM's can be located by doing a simple Google search.

Step 3 – Purchase Any Fractional Denomination Of Bitcoin

To buy any amount of bitcoin, you are required to deal with a digital currency broker. As with any currency broker, you will have to pay the broker a fee, when you purchase your bitcoin. It is possible to buy.1 of bitcoin or less if that is all that you would like to purchase. The cost is simply based on the current market value of a full bitcoin at any given time.

There are a myriad of bitcoin brokers online. A simple Google search will allow you to easily source out the best one for you. It is always a good idea to compare their rates prior to proceeding with a purchase. You should also confirm the rate of a bitcoin online, prior to making a purchase through a broker, as the rate does tend to fluctuate frequently.

Step 4 – Stay Away From Any Trading Platfrom Promising Unrealistic Returns To Unsuspecting Investors

Finding a reputable bitcoin trading company that offers a high return is paramount to your online success. Earning 1% per day is considered a high return in this industry. Earning 10% per day is impossible. With online bitcoin trading, it is feasible to double your digital currency within ninety days. You must avoid being lured by any company that is offering returns such as 10% per day. This type of a return is not realistic with digital currency trading. There is a company called Coinexpro that was offering 10% per day to bitcoin traders. And it ended up being a ponzi scheme. If it's 10% per day, walk away. The aforementioned trading platform appeared to be very sophisticated and came across as being legitimate. My advice is to focus on trading your bitcoin with a company that offers reasonable returns such as 1% per day. There will be other companies that will attempt to separate you from your bitcoin using unscrupulous methods. Be very cautious when it comes to any company that is offering unrealistic returns. Once you transfer your bitcoin to a recipient, there is literally nothing your can do to get it back. You must ensure that your chosen trading company is fully automated & integrated with blockchain, from receipt to payment. More importantly, it is crucial that you learn to differentiate legitimate trading opportunities from unscrupulous "company's" that experts are when it comes to separating it's clients from their money. The bitcoin and other digital contexts are not the issue. It is the trading platforms that you must exercise caution with, prior to handing over your hard-earned money.

Your ROI should also be upwards of 1% + per day because the trading company that you are lending your bitcoin to, is most likely earning up to 5% + per day, on average. Your ROI must also be automatically transferred into your "e-wallet" at regular intervals, through your contract term. There is only one platform that I feel comfortable using. It pay each bitcoin investor / trader 1.1% per day in interest as well as 1.1% per day in capital. This type of a return is staggering compared to what you would earn with traditional financial markets, however, with crypto currency, it is common. Most banks will payout 2% per year!

If you are required to conduct tedious activities such as logging into your account, sending e mails, clicking on links etc, you definitely need to keep searching for a suitable trading company that offers a set-it-and-forget-it type of platform , as they absolutely exist.

Blockchain: The Next Level Of Security To CRM

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What is Blockchain?

‘Blockchain’ is the new trending latest technology that is emerging nowadays. It is a concept that ensures the security of data using ‘cryptography’. It is a continuous growing list of records called blocks, which are linked to each other internally by typically containing a cryptographic hash code of the previous block.

“Blockchain basically is an open, distributed digital ledger that can record transactions between two parties efficiently in a secure way. It follows peer-to-peer architecture(decentralized and distributed)”.

How Blockchain ensures the highest level of security? Or How it works?

Blockchain can provide the highest degree of security that’s why it has been used to store transactional data. It works in a way like soon after the first block has been created, each adjacent block in the ledger uses the previous block’s hash to calculate its own hash. Before any addition of a new block to the chain, the authenticity and uniqueness must be verified by a computational process. And this process also includes the permission and assurance of the other blocks that the newly added block has been verified. This process of validation also ensures that all copies of the distributed ledger share the same state.

Due to this mechanism of adding hashcode and checks, the newly added block can be referenced in subsequent blocks, but it cannot be changed. If someone attempts to swap out or hamper a block, the hashes for previous and subsequent blocks will also get change and disrupt the ledger’s shared state. Whenever this situation happen other computers in the network are aware that a problem has occurred and no new blocks will be added to the chain until the problem is solved. And then, the block causing the error will be discarded and the whole process of validation will get repeated.

How can Blockchain benefit CRM?

With CRM software Blockchain can actually add exciting data security features(options). The integration of CRM with Blockchain enables organization to have verified(or verifiable) records which are secured by Blockchain technology. especially if the CRM is cloud-based.

That means it can benefit CRM application by restricting the access to track data from unwanted sources. At the present time, CRM users across the globe face the issues of duplicate or incorrect data. Since, Blockchain technology stores data in the forms of blocks so it could allow a customer to own a separate block that represents uniquely to them and their personal information, related transaction details, and other relevant data.

Blockchain restricts the duplicate or risky data from hampering the database and hence it speed-up CRM processes and ensures customers satisfaction.