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Why crypto prices are rising

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A lot of people today scoff that cryptocurrency is a bubble and will explode and be done soon. There was a media storm ripping on bitcoin as soon as it got its very first glimmers of light in the public. Famous media outlets (whose writers and readers I mostly consider ignorant fools) slam cynical headlines which are similar to “bitcoin is dead”, even when there was no significant impact on the price. Some guy made a video showing all the articles slamming bitcoin from 2011 https://www.youtube.com/watch?v=-hlN2nel5HI (and it’s a high time for a remake of this video).

Ignorant fools often compare bitcoin to a tulip bubble. Yet, there is a huge power behind this movement, far greater than a few people manipulating the market – faith in the project.

Most crypto supporters realize what makes cryptocurrency so great, and I wrote an article on why it is so great and I will not go into detail here.

But you see, the amount of us is increasing. There are more and more people that learn about cryptocurrencies and why they are so great. And you know what someone who realizes cryptocurrency is great will do? Buy it. Look at google trend chart – people who were looking to buy bitcoin vastly exceeded people who were looking to buy gold or stocks, it even outperformed term “buy iphone” at one point.

And it’s no wonder. And you know, once you learn how great and superior cryptocurrency is compared to a fiat paper printed garbage, how can you unlearn it? How can you go back from it? How can you sit behind a wheel of a toyota prius once you’ve driven BMW X6? More and more people realize they are abused by banks and the all the crysis they cause at even a worldwide level, how can you not support cryptocurrency?

But there will always be people, who will trick and blind poor ignorant souls who would love cryptocurrency had they known how it works and why it’s superior. And I’ve known some people, who do understand how crypto works and yet they are against it and they love the status quo. This is not an issue of ignorance but this is an issue of the hate for the ordinary working class. And such scum will speak cynical lies against bitcoin so that people who would love to get it will not get it.

But you know what, it does not matter. We are multiplying. 2017 was the best year for bitcoin and other altcoins so far. And I cannot imagine what will happen by the end of 2018 but I certainly know, there will be more of us, who will be enlightened by the greatness of a cryptocurrency than there was in the beginning of 2018, thus, more people will buy bitcoin, thus it’s price will rise.

So, let me ask you, oh thou ignorant fool, who scoffs at the cryptocurrency, how do you plan on ever convincing this huge mass of people that bitcoin and other cryptocurrencies are not the future once they were enlightened? How do you plan to stop people talking about obviously superior systems which cannot be manipulated? Government regulations? More media propaganda? How do you plan to stop this massive organic growth and massive society awakening fueled by knowledge?

So, in a nutshell, crypto prices are rising simply because more people get educated about bitcoin and how it works, once they know how it works, they realize it’s great, they buy it, because they believe in it. The more people will get educated about cryptocurrency the more its price will rise. And anyone who scoffs at cryptocurrency is either a fool or has his own dirty agenda.

Have a crypto day, Aero James

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How to bank in big

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I recently wrote on how to get a decent income out of masternodes. Masternodes are wonderful to keep getting your paycheck. If you’re lucky with your choice you might also gain lambo in a year or so.

But there’s another way of speculating – buying cryptocurrency while it is in its infant stages and then it rises hundred or a thousand times. So, if you put in, say, thousand bucks, after half a year or so (if you pick a lively coin) you can walk out with 100k dollars.

Or, likewise, if you put in 100k you can walk out with 100 million. And think about the first pizza bought for bitcoin at 10000 bitcoins, which today is about 110 million bucks. Not bad for a piece of dough with cheese, eh? In stocks, if price rises measly couple times people go bonkers, well, crypto rises hundreds of times, and not in decades, how about that? When looking for an investment, stocks are a complete and utter joke compared to cryptocurrencies.

Many people think “oh, but bitcoin is already more than ten thousand worth, I’ve missed the bus! I cannot invest”. Well, not really. You see, bitcoin was the first big daddy, the first front of the revolution. And being first it has the highest market cap and is ahead of everything. Not because it’s the best cryptocurrency out there but because it was first. There are a lot of things that could be done, and were done better today than anyone without hindsight knowledge could have done. Bitcoin is like the first car when everyone rode with horses (banks and fiat currency) and at the time it was a huge breakthrough. But now, other cryptocurrencies optimized, played with and improved the same formula. Bitcoin block time is 10 minutes and, for instance, Digibyte got it to a whooping 15 seconds. Or, Byteball got rid of the blockchain and mining altogether. The list goes on and on.

However, picking a crypto requires a huge in depth knowledge. So, if you really want to bank in big you should be willing:

  1. To constantly read bitcoin talk forums
  2. Constantly drop your eyes on the pricing
  3. Constantly be interested in the news about crypto

And so on. For me, this is not even a work, I’m a nerd and I’m simply interested and that just part of my daily routine just like going to the bathroom. But for you, if you’re not interested in what one crypto is different from the other (a lot of times they’re not different and just looking for a new people saying “we’re better than bitcoin”, and it’s easy today to be better than bitcoin) you’ll have a tough time knowing what to pick. In such case, if you don’t want to study on your own you should have a nerd friend who is interested and is actively looking for investments, skimming through 10 new crypto announcements daily to find one golden nugget occasionally and simply follow him. If you can follow his moves (and nerds love sharing their expertise) you’ll simply be making as much as him without intricate knowledge of cryptocurrencies.

So, now, I’ll be talking about factors I consider when buying a cryptocurrency:

  1. Current market cap
  2. Innovation factor
  3. Who’s behind it
  4. How large a piece of a pie you can get
  5. How old is it
  6. Quality of their site and visuals

Current market cap

Back in the day as a youngling I refreshed coinmarketcap.com page a few times and I thought I should put some of my rusting bitcoin into other crypto that will also go to the moon (as so many others already did). After all, bitcoin is closest now to its full potential as the largest market cap cryptocurrency and will probably reach a point where it stops growing first. And I simply skimmed top 50 coins I saw and looked what’s so new behind them. Such giants as Ethereum and Ripple are also too large so I hoped to find some undervalued underdog I could buy.

And sure enough, I found two that I thought were smaller yet more innovative at the time: Byteball and Digibyte. I picked Byteball because it got rid of the blockchain and mining, which is absolutely huge and like nothing else I saw. Digibyte was the same implementation of the good ol’ blockchain but it also had something I didn’t see at a time: 5 mining algorithms, 15 seconds block times and it also promised decentralized apps like Ethereum. It’s not as great as Byteball but it’s much better than, say, Dogecoin, which even surpassed billion market cap.

Now, it was mistake to buy both of those for me (for profits). Market cap was still huge as those coins are in the top 50. Today, there are almost 1500 cryptocurrencies in market cap. By picking something of the top 50 was a huge mistake because I’m picking from an already insanely competitive one percent at the top. If a coin got to a top 50 you cannot simply expect it to thwart the rest of the competition just like that. Ripple is on top 5, while being centralized and unnaturally actively pumped.

The coins are still great, had someone shown me a Byteball once it came out I would also have bought it and ride to the moon with it. Same with Digibyte. But by being late, market cap being huge I was too late. The only reason to hold them was out of sentiment, maybe to support the coin, but other than that none.

So, if you want to bank in big, 100x or 1000x you’ll have to be one of the first ones to get it, while it is not rising in price and it is not yet adopted, thus, the most risk. I would aim market cap, if I can, to be a million or less to have huge, 1000x room for growth if it will ever reach a billion.

Innovation factor

For making profits this also helps but may not be essential. If some coin is nothing new but has a backing behind (like a parasite coin called bitcoin cash) it will still rise to the top, regardless if it is worthless pile of same recycled and rebranded garbage with nothing new to bring to the table. But, the coins that are good on their own and innovative gain natural traction, more and more people look at it and realize it’s good on their own – without outside influence and help. Such coins, like Ethereum, are rare nuggets and people who smell them first bank it the most, while people, who smell them last bank in the least (but they still realize Ethereum is great and innovative). But, this is where you’ll have to know what is innovation and what is not. Ethereum was innovation because it allowed any program to be programmed on top of a blockchain and no server can drag your program with it while crashing, it’s just there and it works. For me, and I hope for you, that sounds simple. But I’ve tried explaining this to the people in such simple terms and some say “I don’t get it”, and, if they will, they will be late and the ones to bank in least.

Here’s my quick test for innovation. What’s so great and new about the coin in one sentence? This should be flashing sentence in the website saying “LOOK AT ME, AND READ IT, THUS I AM”, this should be the main statement why you should pick this coin. If it’s hidden and there is an innovation but you cannot get to it then creators have done a very poor job at promoting their website.

I’ll show a few examples:

1. Bitcoin – decentralized, global, private, limitless payments for a fraction of a cost (or it used to be cheap few years ago)

2. Ethereum – run any program on the internet that cannot be stopped or shutdown, without server

3. Byteball – got rid of blockchain and mining, instant payments

4. Pascalcoin – got rid of entire blockchain history, thus less storage required, rememberable, short bank accounts

5. Dash – instant payments, in a few seconds

Now some bad examples:

1. Dogecoin – well, we’re bitcoin fork but we just created it for laughs

2. Potcoin – well… We’re exact same and nothing new and people can use any other thousands of coins to transfer pot, but choose us!

So, if I can, I’ll prefer a coin that is innovative, but if I see a huge backing behind a coin I might still buy it because, without a doubt, it will be pumped and advertised. I used to be “ALL INNOVATION, NO RECYCLED GARBAGE” and I still am, to some extent, but I’ve noticed that coins with backing simply grow, and quite often, when pumped, grow even faster than innovative coins without such backing. If there’s a mechanism in the coin to help sustain and fund the development (Dash) – so much the better. Coin is self sustaining, self pushing powerhouse. Is this the best moral strategy to support something just because it is pushed? I don’t know, but for maximum, long term profits it certainly is.

Who’s behind it

Seeing people’s faces behind something is nice. Seeing serious looking men makes a nice impression. Sure, nobody knows who is Satoshi Nakomoto, and he made a huge impact in our world without a face. But today crypto community is like a wild wild west full of scammers and hackers who, without even thinking, would leave you broke for the rest of your life taking all your cryptosavings if they could. There are great people in the community but there are also horrible people. Whole coins are created just to scam the investors.

One such project was Droxne. Announcement was made in a bitcointalk forum by a senior member, showing nice graphics of characters from triple A games like hitman and stuff about coin related to gaming. Sure, this is not a first project that did this, there was Nitro token, there is Crycash (by the time you read this the ICO will be over), game credits, etc. The creator of the coin had a huge supply of the coin to aid the development and stuff. Everything was fine, it started trading for 1000 satoshis on the exchange, it was mooning. Months went on, none of the promised games were delivered.

And then the main developer simply dumped his reserve funds in the exchange, crashing the market. Ouch. People paid decent money to only get few thousands of units of Droxne and now it was trading for a few satoshis. A lot of people got screwed over (luckily, I wasn’t one of them).

But, a miracle happened. One guy, CoinCollector006 gathered the team, mostly people who invested in the coin to resurrect it and not let it go down the tube. This is the first case I saw this happening. And now people are active in discord and stuff, looking for partners, exchanges, developers etc. Due to this fact, that this coin was destroyed by the original developer on the exchange it was selling for peanuts. And people who are behind it now are the faithful investors who got screwed over. To find out what happened you need to read ~60 pages of Droxne thread in bitcointalk (most people won’t, hence your advantage). But now, marketcap was a measly million, it has a serious team working behind it and it already had it’s first mooning and after it, stayed well above from where it started. So, at that point, having the opportunity, I bought it. Had the original developer been serious and not a scum, and would have actually delivered something market cap would probably be at least ten million and I would never even have looked at it as an investment in the first place, but this happened and the purchase was a bargain.

Anyway, knowing who is behind a coin, their names, and seeing pictures of the faces is an advantage. Big names and big brands have their reputation. They will not simply all of a sudden screw you over on purpose – you would get a huge brand damage. If a smartphone explodes in your pocket and burns you, chances are, you will not want to see that brand again and it may even make the news and more people will make the same judgement.

How large a piece of a pie you can get

This is for more of a big fish, but chances are, I don’t need to tell a big fish what they should do – they should know on their own if they are a big fish.

Essentially, when media announced proudly “one bitcoin is now ten thousand worth”, this saying was induced by Satoshi Nakomoto when he decided in the codebase that one bitcoin has 8 decimal places and there will be 21 million in total. He could have done it 2.1 million also, the media would shout “one bitcoin is now hundred thousand worth” or 210 million and the media would say “one bitcoin is now thousand worth”.

It’s really not about how many bitcoins you have, it’s how much of an entire share of a selected currency in the world you can get. Sure, it might feel good to say “I have one million Dogecoin” but that is a measly 7000 bucks by today’s price and a minuscule percent of the entire supply. Now, you can also say “I have 50 units of 300 token”. Sure, 300 token is more of a parody than a real project (I still have some and HODL it), but, if you had 50 units of 300 token, while there are 300 tokens, you have 16,6% of the entire supply. Market cap now is a very low tiny number of 300k, not even a million, so, if it even reaches a measly 10 million marketcap, which joke coins reach, you’ll have 1,6 million dollars in your pocket.

If you consider buying a large quantity of a coin, consider how much of a dent you can make in the global market. If you can buy one percent of the entire supply while it still costs peanuts – that is huge. Having one percent of entire bitcoin supply would mean you have 210 thousand bitcoins, which in today’s worth would be about 2,5 billion. And, without a doubt, there will be other bitcoins that will introduce amazing innovations and they will cost pennies. And getting one percent of the entire market would mean you becoming a billionaire. And getting one percent of the entire supply is not such a large sum of money, you can do by having a hundred or two hundred thousand dollars worth of coin. This is where many will become billionaires – by making a visible dent in the entire supply of a coin while it costs peanuts.

How old is it

There are many coins that just hang in the coinmarketcap, gathering dust and nobody cares. Surely, a year or two or three years pass and they get a single huge rise. Chances are, if it still has any life in it, it will continue to rise.

But you’d prefer not to wait that long. You’d prefer if you could to buy a coin in the morning, the same day it rises 100 times and you sell it in the evening. You want to wait as little time as possible for it to moon. Thus, if it is already a couple of years on the exchange and it’s gathering dust at 10 million or so market cap, sure, it may rise any moment if there’s still an active development team behind it but there are projects that rise much earlier. For instance, one such project is LuxCoin. It had one word that made investors (myself included) drool – enterprise. If stuff is sold to the enterprise and also related to security it associates with big money. Enterprises usually have no idea what they want but if you mention the word “security” they’re in.

So, this project was not a token, there was no ICO, it was a separate coin and it appeared on market cap at October 27 2017. Merely a week later market cap reached four million. After a month in January 13 2018 it mooned to 40 million market cap now facing correction. Now that is a fast growing project, everyone’s faces are seen in the website and trade volume exploded on cryptopia. People who bought once it was announced banked in big already, I have no doubt it will reach 500 million market cap in half a year.

You see, if a project is old, it is gathering dust already, you know it is not rising fast. If you pick a new project then you also don’t know whether it will rise fast or gather dust for a while, but now at least you know it has a chance to rise fast while it’s new. And you can be more certain it will rise fast if you follow other guidelines mentioned here. Good thing doesn’t stay untouched long in a crypto world. People who seek money will find a good project, not vice versa.

Quality of their site and visuals

Before there was a bitcoin, I used to try all that stuff of “make money online”. It was about 2006 or so. Most people’s websites regarding marketing looked like an absolute and utter garbage. I’m not a website designer, but I understand how plain html without css looks like. And most of the community was ignorant of that. They would even say “oh, design, forget the design, IT’S ALL ABOUT THE MESSAGE”. Well, I understand if your budget is ten dollars per year, then save on the design for sure. But if anyone is doing anything serious, a coin, a token, a new business – make the website stunning. Even Droxne scammer got amazing presale graphics with characters from triple A games and stuff. Most of the new coin announcements on bitcointalk come with flashy images, like a fair woman dresses up with the best that she has (if she’s wise) to seduce her man.

If a website of a coin looks not right (I never saw one that looks as bad as the 1990s plain html), if there’s no attention to detail, chances are:

1. It may be a scam and the website won’t be needed long anyway

2. People behind it are poor and have no backing

There are exceptions to this rule, like always, but that is my first impression, which is not good and I would want to dig in deeper to find out what it is really like. If someone is in bitcointalk forum, proposing a new coin, first:

1. He should probably know how bitcoin works and why it’s great

2. Chances are, since he’s in the bitcointalk proposing a new coin he should be an early adopter and is not poor

I assume such caliber people on bitcoin talk are not poor and they have no excuse to have their website look like garbage. Great visuals attract even many ignorant people who may not even know what the coin is but if their website looks professional, stunning it will appeal them to go in for a ride.

Like, for instance, I saw one project, Bancor. It’s something about smart tokens, anyone can have their own cryptocurrency (Ethereum did that, waaaaay before, and Bancor is hosted on Ethereum also). I remember looking at a huge post explaining what’s the deal with Bancor and why it’s nothing new. My initial impression, without seeing that post, was that it’s useless, overcomplicated and I never put a foot on it. Out of the two, Bancor or Dogecoin I would have picked Dogecoin because Shiba Inu leaves much bigger impression that some complex, unnecessary smart token system which already existed in the first place. For me, the innovation test of one sentence for Bancor fails competely (if you think I’m wrong write the innovation sentence in the comments).

But boy, did the advertisements flash on the ad networks. Even on facebook I saw even people saying “Bancor Bancor, what do you think about Bancor?”. And, of course, the website looked professional and appealing. ICO hit huge, 153 million. I don’t see a great innovation here but I saw a good advertising and a good looking website.

But:

1. To buy that ICO to go 100x would be a mistake

2. After the ICO market cap is already above 100 million, so, to buy it on the exchange to go 100x would also be a mistake

All achieved by nice advertisements and good looking visuals. So, in short, visuals go a long way, making impression that you know what you’re doing.

 

Recap:

Make sure the market cap of a coin is still low, this gives room for growth vs other coins which have already grown, look at around million or less if you can. If the coin is an innovation, that is a bonus, but if it doesn’t seem like it’s anything new, at least make sure it has a strong backing. If you can, find out who is behind it. Photos of people and big names of PhD’s and companies minimize the chances you’re dealing with scammers or some random hackers. Getting a good amount of total supply is important, as total supply dictates price. If you can, and it would not be devastating to sacrifice a hundred or a couple hundred thousand dollars if you lose them, go for one or two percent of total supply (or more, the more you’ll make). Make sure it is new (a must, I’d say) and their website should look stunning and appealing, and it should be pleasant to the common eye to attract other investors.

Thanks for reading 🙂

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Best constant income from crypto I know

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I want to shortly write on the best constant income stream from cryptocurrencies I know. Masternodes.

Masternode is a special computer that you setup that gets a constant share of money while its on the network performing valuable functions, such as sending instant transactions and mixing people’s money to make their transactions untraceable. Like, specific and most known examples are dash instant send and dash private send.

It may seem from the word masternode that this some special super duper member of the network that exists there because it was assigned by some authority in place. Actually, anyone can host masternodes.

There is usually only one hurdle to host a masternode – getting a collateral amount of coins. Dash requires 1000 coins to host a masternode. At the time of this writing one dash costs 924 dollars so that is nearly a million bucks. Quite a hurdle now.

Surely, today most people will probably not go for dash to get a masternode. There is a very useful site to pick masternodes for buying which is https://masternodes.online where I pick masternodes to buy.

There are quite a few masternodes you can get for a few thousand bucks, as for starters I’d go for something that costs up to 10k dollars and something that does not have many masternodes yet for better ROI.

I’ll not go into details on how to rent a server and how to setup a masternode, every currency with masternodes option usually provides clear instructions on how to do that.

I will say this though, regarding stable income masternodes are a much better choice than mining. I will explain why below.

Say bitmain creates a mining rig and it usually costs cheap, like a couple thousand bucks. Everyone’s buying it, setting it up and burning their electricity. However, when mining the network issues new coins at a stable, predictable rate. Network issues, say, 100 coins every 10 minutes. If there was one lucky guy mining he would get 100 coins every 10 minutes. However, if nine more people join mining with same mining power the first guy is only getting 10 coins every ten minutes. In short, his profits dropped 90 percent when nine other guys joined.

Masternodes are similar, but there’s one crucial difference. One masternode under same conditions as above would make 100 coins every ten minutes and would make only 10 coins if 9 other masternodes are introduced. However, if coin is yet unpopular and it costs one dollar per coin, and if you need 1000 coins to host a masternode, you could get masternode for a thousand bucks. But, when its price rises, say, hundred times, now one masternode is worth a hundred thousand dollars, unlike miners which cost still only a few thousand dollars regardless of a success of a coin.

So, unlike miners, there is a built in seamless gate which is slowly closing in from more people joining the party and cutting your profits. If you’re an early adopter and you buy a masternode or two while they’re cheap you can sit back and relax knowing you don’t need to keep on buying miners forever to still be relevant in your market share. It will just close, like dash did now one masternode costing about a million while people were buying them for peanuts when they were cheap.

And another benefit is that you technically didn’t buy a masternode. If you get a thousand dash and you host a masternode you keep the dash. You can say tomorrow “I want out” and you still have a thousand dash and can get your million back.

The closest analogy I can think of is a loan, which you lend with interest to a good guy network, which is not even a man. And the person you’re lending to is the best, good guy, wealthiest individual you know, who is:

1. Predictable

2. Always pays you on time

3. Has no interest in screwing you over

4. Will never run out of money

5. Will never be influenced by a third party to do anything to hurt you

So, in short, masternodes are better than mining for constant profits (leaving your job) because:

1. A masternode party will close due to the price, mining will not and it will be harder and harder

2. You get to keep the initial investment once you start and miners that cost thousands now will be irrelevant, unprofitable, useless garbage few years down the road

3. Much easier to manage remote server than a mining farm

So, there you have it, the best thing I know for constant profits out of cryptocurrency, and if you know something better I’d love to read it in the comments 🙂

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What is a cryptocurrency and why it’s so great

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Now, there was a time before bitcoin and there was a time after bitcoin. As you have probably noticed in 2017 bitcoin has gone viral. I’ve been in this much earlier than 2017 but 2017 was the year of bitcoin. As a linux fan, I’ve always waited for the year of a linux desktop and, sadly, it never happened. But boy, did bitcoin smash everything to pieces. Consider the following google trends comparison:

https://trends.google.com/trends/explore?date=today%205-y&q=buy%20gold,buy%20bitcoin,buy%20stocks,buy%20iphone

People who were looking to buy bitcoin were more than people who wanted to buy gold or to buy stocks. It even outperformed buy iphone, which is insane. Practically everyone has heard about bitcoin by this point and price skyrocketed nearly to 20k before calming down before the next rise (at the point of writing this did not happen yet, but I predict next run will be at least 50 thousand per bitcoin, we’ll check this time capsule in half a year 🙂 )

Since price is rising so badly many people scorn that bitcoin is a bubble. But, I’ll show the intrinsic value behind bitcoin and why it’s price is rising not only because everyone is buying but why it’s valuable also in itself. There are thousands of cryptocurrencies today but I’ll start with bitcoin to show why it was such a monumental cornerstone in the money revolution and what was so great about it when it came out that attracted its always growing userbase.

So, bitcoin is essentially online payment system. That appears to be nothing new. Long before bitcoin there was a paypal and similar services that operated successfully. Banks also make online payments successfully (to an extent). But there are some crucial differences, bitcoin firsts that introduced something nobody saw coming or expected:

Decentralization

All previous services before bitcoin had to run on some server. As a physical machine that you run to view this website other machine has to serve your requests to satisfy your payments. The problem with this is that in the internet everyone can find where your machine is located (if you’re not using some elaborate schemes like Tor etc.).

So, if some bad people wanted to shutdown some centralized payment system, like paypal – they know where to go. They could issue a law that would forbid paypal’s activity, sue paypal and issue a huge fine, make it bankrupt and so on. Paypal has to play by the rules and regulations. The state and environment in which paypal operates today is not necessarily the same it will be tomorrow, which brings an uncertainty and makes it fragile.

On the other hand, bitcoin (and most other cryptocurrencies) can run anywhere. My computer can run bitcoin node. My neighbour can run bitcoin node. Some guy in the mountains can run bitcoin node. Today, there are 11712 nodes that run bitcoin. Even if half of them were shut down bitcoin would continue to operate. There is no single point of failure. So, it’s much easier to trust than some centralized servers with imposed restrictions and changing requirements.

Trustless

When you make a transaction with paypal or with bank you trust a bank to perform your will of transacting money. It can say no any time for most bizarre reasons. It might say “you’re doing a fraud, you’re Osama Bin Laden’s cousin” and you’re trusting them that they will take care of your money going to the recipient. That their servers will not corrupt the data you send. That their systems will not get hacked and your account will not be emptied by a third party.

Not so with bitcoin. Sure, people say bitcoin wallets are hacked, but if they are hacked they are hacked in your computer. If bank gets hacked, it doesn’t matter what you did in your computer – your bank account could be done. But, with bitcoin your private keys that unlock your funds never leave your computer. Once you understand how cryptography works (a huge subject on its own, just trust me on this, pun totally intended) you realize that nobody even has a slightest chance of messing with your bitcoin as long as private keys are safely tucked in your computer and nobody hacks your laptop. That’s why when owning bitcoin (and using secure operating system like linux) you can sleep well, knowing your bitcoins are safe as a baby in her mother’s hands and you don’t need to trust huge teams of people who may or may not know what they are doing with their money and can make innocent mistakes any day in their servers.

Privacy

I’d love to use the word anonymity for bitcoin but I cannot. It’s rather pseudonimity. There are other cryptocurrencies out there that are truly anonymous, like Monero, Dash with its private send, Byteball’s darksend. But, I will say, compared to an average bank or payments service bitcoin provides much greater degree of privacy. For instance, to register at paypal you need to provide first name, last name, address and so on. However, in bitcoin the data you need to provide to the network about yourself is a flat zero. No need to send your id, no need to sign any papers. Just install the client and off you go. All you need to give for the people who want to pay you are the bitcoin address like 163iS81U8qZRig27HavLh6ZwixgPbVQrpU and that’s it. No address, no name. You might as well give them this address while you’re completely anonymous to receive your money. Not so with any other online payment system. Only cash can come close to such convenience.

Limitless

Practically, every today’s conventional payment system imposes some limits on you. Like, you can only cash out thousand bucks before you verify your account. Or, you can topup only such and such amount per year. Or, it is much harder to send money across borders. In bitcoin there are no limits. Sending one bitcoin (12 thousand dollars by todays price) costs exactly the same as sending 100 bitcoins (1,2 million dollars). And it is irrelevant if the recepient of money is in Africa or a north pole. Nobody will ask you for your id, nobody will block your account for such payments. You probably will not even get investigated because nobody even knows who you are in the first place. The flow of value between persons was never so simple and easy and frictionless.

Finite supply

With current dollar or any other fiat currency we have no idea how much there is in the market. Some years we say that the prices are rising, the life gets harder. We have zero control or knowledge of our money supply. If we were working 40 years and were saving our money for our kids and say save up hundred thousand dollars. Let’s say that hundred thousand dollars is one percent of the entire dollar supply. It would really suck if someone printed just ten times more dollars than there are and they go into circulation, wouldn’t it? You would become 10 times poorer. You’d have the same amount of dollars but you would end up poorer because its supply increased.

Not so with bitcoin. From the very beginning of bitcoin the amount of it was clearly defined and there’s no way for anyone to ever create more bitcoins than it is intended to be mined in the original code. The cap is 21 million. At the time of this writing there are about 16,8 million in circulation. So, if you were to buy one million bitcoins today and put it in your tucked in wallet, you can rest assured that you have one twenty-oneth part of the entire bitcoin supply, period. Nobody can come and create another twenty one million bitcoins, making you twice as poor. And this will never change, the same yesterday, today and forever. And when bad people will print dollar infinitely you can sleep well knowing you will retain your savings and there’s nothing anyone could do about it.

Divisibility

Another great feature of a bitcoin, which is there in some extent in the fiat money is divisibility. One dollar is divisible to two decimal places, to hundred cents. Which may be okay, I guess, but bitcoin exceeds this by a whopping 8 decimal points, that is, hundred million satoshis (lowest possible bitcoin amount of 0.00000001). For dollar, two points may be enough, but one bitcoin now costs 12k dollars. Now, similar to bitcoin, gold also has quite a few of the bitcoin’s properties as a store of value, but I cannot send one hundred millionth of a gold bar to someone, which is much less convenient. Even if some bad people were to buy 99.99% of the bitcoin supply average people could still perform day to day transactions because it is that much divisible.

Auditability

How hard is it to print paper money? Not much for people who do it “legally”, when they do it that is called “regulating money supply”, if you were to do it you’d be called a criminal. Gold and paper money are much easier to fake. I’ve heard of people who bought gold bars their entire life to save up money and when they needed them for something important, like spouse’s medical treatment and then all of them turned out to be fake. Much harder to spot fake gold, you need a technical jewelers equipment to do it. Likewise, people who get large amounts of cash sometimes go to the cashier and ask them to check the money. However, in bitcoin, it’s laid bare for everyone to see and you cannot send fake bitcoins to anyone. Surely, if you’re naive someone could tell you “I gave you 10 bitcoin” and show you a fake web page, but to verify the transaction yourself all you need to see is received transaction in your wallet with a few confirmations. If these are confirmed – these are real bitcoins and it cannot be any other way.

 

So, to summarize, bitcoin revolutionized money forever by bringing in these traits that did not exist before in any other payment system (at least all of them simultaneously):

  1. Cannot be shutdown due to decentralization of thousands of nodes versus single servers that can be shutdown
  2. You don’t have to trust any entity to perform a transaction unlike centralized services that can change rules any time
  3. Bitcoin introduced privacy to its users that was unheard of in centralized payment systems
  4. Bitcoin completely removed all transaction limits imposed by centralized services
  5. Bitcoin introduced a finite money supply with an unbreakable promise that there will be no inflation unlike fiat currency
  6. Bitcoin introduced huge divisibility factor for money unlike gold which cannot be broken in pieces easily
  7. Bitcoin introduced a way for users to be 100% sure that they received their money and nobody can do anything to reverse the transaction unlike chargebacks in centralized payment systems

So, is bitcoin a fad and has no intrinsic value on its own and is a bubble ripe to explode? I’ve laid the facts and now it is your job to decide on your own 🙂

Uncategorized

What a time to be alive!

Posted by admin on

How excited I am! As a geek I’ve been looking on how to survive in the world online, just sitting at my computer for a very long time. Another thing I was looking for was not working.

So, I’m glad to say that I have achieved all those things and entered into rest of my life. I’ve always wanted to learn UFC style fighting, to learn how to use guns, I saw a drone on a store and I thought that would be cool, now I have all the time in the world to do what I want.

All thanks to cryptocurrencies.

Not only that, I didn’t have to deal with any of the things normal that businesses deal:

  1. People
  2. Unreliable people
  3. Changes of laws
  4. No regulations
  5. No loans
  6. Practically no risks
  7. Mostly done from my computer

 

And I’ll be glad to share the adventures in the crypto world with you.

What I’ve already tried:

  1. MLM matrixes (what a fraud looking back in the day)
  2. Fiverr gigs – was doing ok but only getting pennies
  3. SEO – was doing somewhat ok, google changed their algorithm and my money site plummeted

 

Many people claim that cryptocurrencies are a bubble, others say “it cannot come from nothing, if it is too good to be true it probably is”. You have to work hard, and sweat like a pig and must take a loan to get a flat or a nice car, don’t you? The more I study this world the more I come to realize that most of the things that are taught as a conventional knowledge are false. People are scorned at when they save money for a flat instead of going to a bank. Cryptocurrencies are scorned at because they render banks useless and make payments much faster. Crypto investors are scorned at and are called a fraud and what they are doing are a child games apparently.

In this blog I will explain as simply as I can:

  1. Why prices of cryptocurrency are rising
  2. Why cryptocurrency is not a bubble
  3. Why cryptocurrency is innovation and is different from everything else before it
  4. What are the greatest ways I know to get a constant income off a crypto
  5. What are the greatest ways I know to bank in big from a crypto
  6. Why some people earn off of crypto and why some don’t
  7. And many other topics in between

So, buckle up your seatbelts boys and girls because we’ll go for a ride 🙂

My blog is for all those ignorant souls that don’t know about crypto yet but would like to find out, with love, aero james.