Services

Cryptocurrency Investment

Cryptocurrency

Why YOU need to own crypto Currency

History of crypto currency

The concept of cryptocurrency investment began 2008 Satoshi Nakamoto produced a white paper proposing a fiscal exchange that had de-centralised control, user anonymity, record keeping by a Blockchain and built in scarcity.

No-one knows who Satoshi Nakamoto is or even if he is a real person and most people believe Satoshi Nakamoto is the representative name, for a group of crypto enthusiasts who released Bitcoin on the world in 2009.

By late 2010 the first of what would become dozens of alternative crypto coins were issued and now there are dozens of cryptocurrencies or virtual currencies all of which can be traded and exchanged if you have the right broker. 

How do Cryptocurrencies work?

Cryptocurrencies use cryptographic protocols or extremely complex code systems that encrypt sensitive data transfers and through the Blockchain determine whether the transaction is  genuine or not.

In simple terms it works like this:-
I send a transaction of say $500 of Bitcoin to another person. $500 is about .0146 BTC (BITCOIN). 


I have a wallet address that looks something like: 
39jyc2TR8udHs484Nprt3XBRj34TYde430jjvw6


This wallet address is unique to you.
If I want to send money from my wallet to another wallet I simply decide how much  I want to send and withdraw/send money from my wallet to that person’s wallet.

IMPORTANT NOTE
With most brokers you MUST send like for like. What I mean by this is you HAVE to send BTC to a BTC wallet. If you try to send BTC to a Litecoin Wallet (LTC) the transaction will fail.

The transaction goes in the blockchain and once a confirmation has been received then this means the transaction has been a success and money is taken from your account and passed to the person where you are sending the coin.

This is they key part of the process.

If the transaction is not completed, then no money is taken from your account and eventually the transaction will time out. 

This is the safety of the blockchain process. You cannot send crypto currencies to anyone unless the process has been confirmed by your broker. 

 

7 Advantages of cryptocurrency Investment

1. Decentralization – Governments can check, monitor or even freeze an individuals fiat (actual physical money) but this is largely impossible with crypto investment.  Cryptocurrency accounts are held in numerous locations in the world making state control assuming state co-operation impractical.

2. Built in scarcity. There are a finite number of Bitcoin in the world and this gives crypto the same scarcity appeal as precious metals.  

3. Government fiscal monopolies are eased with crypto currency and they have less power to control. It seems inevitable that at some time in the future, governments will embrace crypto currencies and incorporate certain aspects of cryptocurrency into fiat currencies.

4. Crypto is self-policing through mining. Crypto miners are paid to validate Blockchain transactions. This means miners have a vested interest in updating and keep the Blockchain as accurate as possible.

5. Privacy protection. Privacy and anonymity are one of the founding principles of Cryptocurrency.

6. Inexpensive transaction costs. Online transfers from wallet to wallet can either be free or charged depending on the broker. Some brokers charges vary depending on how much coin is being set, where the coin is being sent to and what crypto coin is being sent.

7. International barriers and costs eliminated or reduced – it should cost no more to send a crypto transaction to someone 20 miles way than to send some Cypto  2,000 miles away.

7 Disadvantages of cryptocurrency Investment

1. Potential for tax evasion – since cryptocurrencies are not regulated by national government, there is an opportunity to evade tax for services that would usually incur a taxable charge.  The law covering all income earned does not discriminate between money earned through crypto investment and money earned and rewarded through conventional means but it would be impossible to police. 

2. Possible black market operations. Being anonymous Bitcoin is  a haven for those engaged in illicit online activities. This is without doubt most governments major worry about cryptocurrencies.  

3. Potential for data loss. Assuming a virtually uncrackable source code,  impenetrable authentication protocols and watertight hacking defences it is in theory safer to keep money electronically than it is in your back pocket. However. Crypto stored on a  single storage device can be lost and even cryptocurrency stored on a  remote server is in peril should the internet be taken down of the country where the host server is located. This is a remote possibility it has to be said.

4. High price volatility.  BITCOIN has and is likely again to  see huge variations in price and spectacular sell off. Failing to just hit the $20,000 per coin level, BTC fell sharply and in March 2020 was as low as $3200 per coin. Just 9 months later the price broke through 40,000. 

5. No refunds. There is no process to recover lost cryptocurrency should you be a victim of fraud. Brokers have no control of who you send cryptocurrency to so make sure you only send BTC to known and recommended addresses.

6. Not environmentally friendly. Mining BTC is not ecologically friendly and this issue will be bought more and more to the fore over the next few years. A switch to low or no-carbon footprint mining must be considered to alleviate this issue.

7. Complicated security issues. Although opening a cryptocurrency wallet is quite simple and straightforward, the process to fund your wallet and then send cryptocurrency from one wallet to another recording transaction ID’s d can be quiet intimidating. Many brokers ask for email, SMS or Google Authenticator confirmation of access to your account.  This security is necessary to eliminate fraud.

Where next and why you should invest NOW!!

Bitcoin projection

Short mid-term projection

As a Forex Trader since 2005 I can easily read trading charts and determine where the price might be headed over the short, medium and long term.

Its far more problematical with BITCOIN as we have no history. Every time BTC makes a new high, it has never been there before. Sometimes Fibonacci can reveal the mid term direction of BTC v USD and this means laying the Fibonacci frame on a chart and adjusting the levels to see if they fit the chart.

This is, to be honest, an imprecise procedure and far easier to do retrospectively on charts with plenty of data but should Fibonacci predict correctly the above scenario could play out and if it does we may see a mid-term price of 81,600 over the next few months.

However, we may see the price of BTC adjust before we hit 81,600 in fact its highly likely that we shall see the price move sideways, fall or surge over the mid and long term.

What is (almost) certain is that we shall see the value of Bitcoin rise over the long term. This is the general opinion of all cryptocurrency and FX traders, the big question is not whether Bitcoin will appreciate in value but how far can Bitcoin go and the short answer seems to be “no-limit”. This makes cryptocurrency investment an irresistible investment opportunity.

Long term projection

No-one can be certain what the price of a single BITCOIN will be in 2, 5, 7 10 years time. Goldman Sachs are not the only bank to forecast that one BITCOIN could hit $1M in 5 years time. 

Why you need to have some bitcoin now!!

Only 1.3% of the worlds population possess a cryptocurrency wallet and just 5.2% of the population of the UK have any crypto investment its is thought (though no-one actually knows). This means that many people fail to see how significant cryptocurrency investment is and how cryptocurrency investment can benefit them. 

What does seem certain is that the price of BITCOIN and other cryptocurrencies are only headed in one direction and that’s up. 

The journey north may see many swings and we could see the price of BITCOIN fall dramatically but should that happen it must be considered as an opportunity to buy when “cheap”. 

Anyone and everyone who has a reasonable amount of money saved in a bank or a building site is missing out on a once in a lifetime chance  to take advantage of the crypto age. Why have $1000 or 1000 GBP earning virtually no interest when you can own an asset that might increase 20x fold over the next 5 years? 

Cryptocurrency investment should be an essential part of any investors portfolio.

In the links above I detail 2 different cryptocurrency investments assessments and relate the exceptional business opportunity presented by membership of CashFX. A 20 minute webinar all about CashFX can be viewed here.

Scroll to Top