Cryptocurrency: the future of money or the biggest Ponzi con in history?
You may have heard the saying, “rich as Croesus”. Meaning that you have to exceeding wealthy to be richer than the king of Lydia in Asia Minor in 560 BC. He is believed to be the first person to mint coins as “money” from gold, although I visited a ruin in Rome where the Italian guid said the Romans first minted coins and coined the phrase which became known as money. Why was Croesus fabulously wealthy? He formed and controlled his own currency which dominated the region.
Now others want to form their own currency and dominate the financial markets.
Is it a currency or just a speculative investment?
But are cryptocurrencies, such as bitcoin, the answer or are they, in the words of Warren Buffett, a “mirage”?
Buffet has called it wrong on previous technological revolutions, but you have to sit up and listen to one of the greatest investors and richest men in the world.
The leading and most well-known cryptocurrency is bitcoin. In the last five years, the price of a single digital bitcoin has risen from $263 to over $10,000.
It rose to $17,000 in 2017 and failed to just over $3000 a year later and doubled since March 2020, as soon investors sought a “safe” haven for their cash during the financial crisis.
What is Cryptocurrency?
Cryptocurrency is a digital assets design to become a medium of exchange where individual coin ownership records are stored on a ledger in the form of a computerised database records known as the blockchain.
The US dollar is the world reserve currency, which gives America a tremendous advantage because other countries need to change their currency into dollars to trade internationally.
China is launching its own digital currency based on its paper currency, the Yuan. Although not the same as a cryptocurrency, China would like to break America’s dominance in the financial markets and become the most widely used international currency.
How do you buy a Cryptocurrency such as a bitcoin?
The answer is you exchange your real money dollars or pounds for digital bitcoin stored in a “wallet”, which comes in various forms.
When you sell it, you get back your dollars or pounds.
Bitcoin is not a practical and real currency accepted by markets and governments. You cannot go to your supermarket and pay for your shopping in cryptocurrency. Digital currency is coming as the banks try to phase out money using “Covid 19” as an excuse.
Furthermore, if you accepted payment in bitcoin in December 2017 when the price of one coin was equivalent to $17,000, a year later that bitcoin would be worth $3000.
There are other contenders for the digital currency market, including Facebook with their libra currency.
Some form of digital currency will eventually replace paper money.
Money Tips Podcast - www.moneytipsdaily.com
Heal your money wounds the Japanese way with Ken HondaJapan’s #1 bestselling personal development guru. Ken will take you on a journey where he will teach you the Japanese art of healing your money wounds and making peace with your money. Too often, money is a source of fear, stress, and anger, often breaking apart relationships and even ruining lives. We like to think money is the centre of our lives and everything depends on our financial status, but Ken challenges our beliefs to install more liberating perceptions of money and delivers concrete tools that have the power to change your life. Click to join his free masterclass – Click: https://bit.ly/2GqyYki
Create your
podcast in
minutes
It is Free