We are moving towards a cashless society. This was already true even before the invention of Bitcoin and other cryptocurrencies. Cash transactions have been decreasing over the years as more and more people opt to use credit/debit cards, Paypal, Venmo and other online banking platforms. For those concerned about the lack of physical tangibility of digital money such as Bitcoin, you should realize that most of your money is already just a number in an online database.
Prior to cryptocurrencies, we were already headed towards a cashless future where every type of transaction would need to pass through a third party institution. These institutions of course charge ‘convenience’ fees for their services while recording every payment and purchase you ever make. The video below explains the consequences of this.
Blockchain is the decentralized underlying technology upon which cryptocurrencies are built. Blockchain is the next evolution of the internet. While Bitcoin may eventually disappear due to the invention and adaptation of a better competing cryptocurrency, the blockchain is here to stay.
While Bitcoin and Etherium prices have gone soaring, I do think that there eventually will be a mass correction to many of the most highly valued cryptocurrencies once money stops pouring into them or due to a panic after another major exchange is inevitably hacked. However, I believe that these currencies will rebound to rates that are at least as high as they are at now. If you had invested in Bitcoin 1 year ago (January 2017), your money would be worth 17 times more today. If you had invested a few years before that, you would likely now be a millionaire.
Bitcoin, Etherium and other cryptocurrencies are truly global currency. Those of us who earn and use Dollars or Euro on a daily basis trust the value of these currencies to be reasonably stable. However, those living in countries such as Nigeria, Venezuela, Argentina and Russia have all experienced the value of their national currencies be cut in half overnight.
Cryptocurrencies offer access to value storage and ‘online banking’ options to segments of the world population who previously lacked such options. A 25% swing in the price of Bitcoin does not seem as volatile and as risky to citizens of countries whose native fiat currencies have been known to do the same. The ease, speed and low cost of converting one’s money to cryptocurrency will make it an attractive option for protecting the wealth of citizens whose nations are in crisis.
Bitcoin is actually a deflationary currency. Only 21 million bitcoins will ever be brought into existence, and many of those already created have been lost and are impossible to retrieve. Thus local governments can’t just start printing more of them when they need to pay their way out of debt.
I currently recommend putting 10% of your investment portfolio into the cryptocurrencies Bitcoin and Etherium. I recommend Bitcoin because it was the first to market and has a strong brand name, and Etherium because of the versatility of applications that can be programmed to run on its blockchain.
The blockchain is an incredibly secure technology. Online exchanges, databases, software wallets, or any device connected to the internet that could be used to store cryptocurrencies are not secure. No matter how securely you design a system, the greatest weakness in security is always at the interface between the technology and the user. Thus malware programs such as key-loggers and screenshot capture technology, which is already likely infecting your mobile phone and computer, can be used to steal your money.
The video below explains why it is so critical to take the proper steps to make your investments safe.
I recommend using a Trezor bitcoin wallet
Having the keys to your Bitcoin and Etherium stored on a device which is not connected to the internet is the most ideal solution.
For buying Bitcoin and Etherium I recommend using Coinbase. Click the affiliate link below and you can get $10 worth of cryptocurrency for free!
After purchasing your Bitcoin and Etherium through Coinbase, the safest thing to do is to transfer it to a hardware wallet or paper wallet whose key is printed out and not stored on a device which is connected to the internet.by