What is a Cryptocurrency
What Is A Cryptocurrency
The easiest way to explain “what is a cryptocurrency” is to say that it is a digital currency rather than something physical you can hold in your hand and are primarily exchanged over the Internet. They also operate outside of traditional banking systems and government control. Essentially they are invisible.
Why Is That a Good Thing?
Because they CANNOT be manipulated by the Federal Reserve, or any other of the numerous central banks around the world. So they cannot be inflated or devalued by them, nor can they be seized or confiscated by any Government.
Which is why Cryptocurrencies are probably a more “honest” and “secure” form of currency, than any other in the world today.
I mean, Just look at how much trouble the global economy is in. With the central banks printing massive amounts of money, government Bailouts, bank Bail-ins (which is where a bank take depositors money) and loads of financial ‘stimulation‘ and manipulation going on.
Its created a world of fiat money that has lost massive value, resulting in one messy financial crisis after another to the next and so on.
But that’s not all…
Government Inference with Traditional Money
Just take your own money that you have earned legitimately. Most people are unaware that under the Bank Secrecy Act, if you withdraw $10,000 or more of your own money, your bank is required, by law, to file a Currency Transaction Report with the Financial Crimes Enforcement Network (FinCEN).
This is a special agency that’s tasked with supposedly combatting money laundering, terrorist financing, and other ‘financial crimes‘.
And your bank is also required to file a Suspicious Activity Report with FinCEN. If it believes you are trying to avoid triggering a Currency Transaction Report by withdrawing smaller cash amounts. This then puts all your past and future cash withdrawals under the microscope.
And If That’s Not Enough…
Taking out your own cash isn’t the only activity the government deems suspicious.
Activities, such as,
- Depositing $10,000 or more in cash,
- A foreign exchange transaction worth $10,000 or more,
- Taking more than $10,000 in cash in or out of the U.S,
- Receiving more than $10,000 in cash in a single payment as a business,
- Or having more than $10,000 in accounts outside the U.S.A, for example.
Any of these and more will trigger a Suspicious Activity Report, even if you are an average law abiding citizen with nothing to hide.
In fact if you are an American citizen, irrespective of where in the world you reside or where you earn an income, you must file annual tax returns and declare all bank accounts and assets (including those of your non-American spouse) to the IRS, just because you are a US citizen.
Again, not many people are aware of the 2010, Foreign Account Tax Compliance Act (FATCA) Not only does this new law impact every American living and working overseas but every U.S born person on the planet.
It also requires all non-US (‘foreign‘) financial institutions, such as banks, to allow the IRS to search through customer databases to identify customers suspected of being US persons, and to disclose the account holders’ names, addresses, and the transactions of those accounts.
“Welcome to the Land of the Free and the Home of the Brave“
Then There Are The Civil Asset Forfeiture Laws
That most countries have in some form or another. Under these ‘civil asset forfeiture laws’, police and federal agents can confiscate any cash you might have, if they ‘merely suspect’ that it was involved in a crime.
They don’t need to file any criminal charges or prove any wrongdoing. They only have to ‘suspect’ or say they ‘suspect’ the cash ‘might be’ involved in a suspected criminal activity. No proof on their part is required! And they can keep any seized cash for themselves.
According to The Washington Post, since 2007, the DEA alone (just one agency) seized more $3.2 billion in cash from Americans in cases where no civil or criminal charges were brought against the legal owners of the cash. Over the past decade, the federal government has seized more than $28 billion.
What’s disturbing about this, is that in 2015 alone, civil forfeitures, exceeded the amount stolen by all the robbers.
Yes, the U.S Government stole more from the American public through confiscations, than what was stolen outright from robberies and muggings.
But That’s Not All…
Just having this discussion could soon be a considered a crime. I’m not kidding! Even in the USA, this might well become an illegal conversation.
You Don’t Believe Me?
Most Americans, are unaware that in December of 2016, congress passed the Countering Foreign Propaganda and Disinformation Act (CFPDA). This new law removed all your rights to ‘freedom of speech’. This new law states that if an individual’s ‘statements‘ disagree with “accepted truths” then they are in breach of this new law.
“What is OR are ‘Accepted truths’ is yet to be tested by the courts. But the type of information on this very page could be deemed to be an ‘unacceptable truth’ – about the government” and be in breech of this new law.
So it’s no surprise that Cryptocurrencies are becoming an Alternative to Traditional Money because it can be used outside the banking system and immune from theft by governmental institutions, and could be a way of protecting yourself from further attacks upon your rights and freedoms from your own government.
As a result of these infringement on your basic rights and rapidly shifting times, cryptocurrencies are attracting a lot of interest from everyday people.
As of June 2017 total market capitalization of cryptocurrencies was larger than 100 Billion USD and record daily volume is more than 6 billion USD.
You have probably heard of ‘Bitcoins‘. It was the first known cryptocurrency to be used for a commercial transaction back in May 2010, when a web developer purchased two Papa John’s pizzas using 10,000 units of Bitcoin. At that time that many bitcoins was roughly worth about $30.00.
What you may not know, is the value of Bitcoin has been skyrocketing ever since. By 2014 (just four years later), that same $30 of Bitcoin units, was worth more than $5 MILLION.
“Today, that same $30 is now worth a life-changing $20 million!
Have I Got Your Attention?
There are numerous reasons why you should invest in cryptocurrency and the first of which is that soon millions of people will be investing in them, once they realise how powerful and secure this type of currency is.
You don’t even need to buy a whole coin, you can buy units and pretty much in any currency you want.
This means it’s A HUGE opportunity for you as a CRYTO investor as well as an online entrepreneur to get started before it becomes mainstream:
A Bitcoin Overview
See the 3 minute Video below to get a quick overview of Bitcoin.
While these alternative, decentralized modes of exchange are in the early stages of development, they have the unique potential to challenge the existing systems of currency and payments.
- In a 2013 report, Bank of America Merrill Lynch stated that;“We believe bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money-transfer providers”
- In June 2014, the first bank to convert deposits in currencies to bitcoin without any fees was opened in Boston.[see Wikipedia]
- In 2015, merchants accepting bitcoin exceeded 100,000.
- Firms that are accepting bitcoin include PayPal, Microsoft, Dell,
- In April 2016, The Wall Street Journal, stated that “Bitcoin is starting to look slightly more stable than gold”.[see Wikipedia]
- On 3 March 2017, the price of a Bitcoin surpassed an ounce of gold.
Many people worry about the legality of cryptocurrencies as the legal status of cryptocurrencies varies substantially from country to country.
While some countries have allowed their use and trade, others have restricted them. As various government agencies, departments, and courts have classified bitcoins differently.
- The China Central Bank, initially banned the handling of bitcoins by financial institutions in China during an extremely fast adoption period in early 2014, then they relaxed they rules on them, only to ban they again in September 2017.
- In Russia, cryptocurrencies are legal, although, it is illegal to actually purchase goods with any currency other than the Russian ruble.
- In Japan (April 2017) they are recognised as legal tender.
While it seems like a good time to invest in Cryptocurrency (There are now more options than just Bitcoin, such as Ethereum, Litecoin and Ripple, for example) and as of August 2017, there were more than 1,000 digital currencies in existence.
But knowing where to start and how to invest in these new assets could be an overwhelming and daunting task if you don’t know what you are doing.
Which why it is probably a good time to get educated about Cryptocurrencies and learn how you can invest and profit from them.
|Get the Cryptocurrency Blueprint here|
Traditional Money is Not As Stable As You Think.
Traditional money as we know it has actually had a tumultuous history. The Romans may have been the first to debase their currency in a significant way, and many historians believe this was a key factor in contributing to the downfall of that empire.
Unfortunately, the world has not learned from those events and countless other currencies and country economies have also bitten the dust due to the government manipulation of the money supply since then. Many currencies around the world have failed due to government tampering and the resulting hyperinflation.
Notably and alphabetically;
- Austria (1922)
- British Malaya (1945)
- China (9th Century and several other times 1945 and 1949)
- France (1796)
- Germany (Weimar Republic, 1923)
- Greece (German-Italian occupation, 1944)
- Hungary (1923 and 1944)
- Iraq (Between 1987 & 1995)
- Mexico (1983)
- North Korea (2010)
- Poland (1923 and 1990)
- Philippines (1944)
- Romania (1990)
- Soviet Union (1924)
- United States (1779 and 1864)
- Vietnam (1988)
- Yugoslavia (1994)
- Zimbabwe (2008)
Recent Events in Venezuela
Currently, Venezuela has the highest inflation rate in the world at 741%. In 2014, 6.25 bolivars got you about US$ 1.00. Today, you need around 16,000 bolivars to get that same $1. So the Venezuelan Bolivar is basically worthless, you can’t even buy a loaf of bread with a wheelbarrow full of them.
So it’s no surprise that Venezuelans are looking to purchase alternative currencies. And the U.S. dollar has been one of their favourites, however the government has tighten, even further controls on currency exchanges. It restricts the number of dollars people can buy and what they can do with them.
As a result Bitcoin volume has surged to record highs in Venezuela since the crisis has deepened…
How Are They Using Them?
They are using bitcoins to buy Amazon gift cards. They buy the gift cards so they can order goods and food from the online store in the U.S. and other countries. The goods are then delivered by courier to Venezuela. The people are doing this in order to survive. But they’re not the only ones who have done this.
In 2013, Cypriots loaded up on bitcoin after the Cyprus government closed banks for a month and then confiscated account holders’ money to “bail in” the banking system. Bitcoin volume in Europe shot up 286% during that time.
Then there was Greece’s 2015 economic crisis, when the government shut down all the banks for a month. Bitcoin volume in Greece increased 79%.
Bitcoin is fast becoming the world’s premier chaos hedge. And we are heading towards more chaos in the coming months and not so distant future.
Getting Out of Government Controlled Money
So if you can’t trust government money, what can you trust?
Gold! Well, yes! But it’s not so easily traded at retail stores and banks and its difficult to move and store.
If you need a way to protect yourself from just relying solely on vulnerable government created paper currency. Then the solution may be: cryptocurrencies.
Cryptocurrencies could be a good way to protect yourself from the wealth-destroying policies of governments and central bankers. As digital currencies like, Bitcoin (for example), are not owned by any government or any bank and as they have a fixed supply, Politicians and bankers can’t inflate its value away or outright steal them. They are also easily moved, stored and traded
If you want to buy* Cryptocurrencies (like Bitcoin) online, it can be a daunting experience. However I have found a useful site called LocalBitcoin.com which is a person-to-person bitcoin trading site.
Unlike other stock-exchange-like bitcoin trading sites, you can make a trade directly with a person from the US or from another country who can exchange their local currency to bitcoins. This makes the process lean and fast, as there is no corporate overhead. You get your bitcoins instantly.
See image below for real time value of a single Bitcoin
The site allows users to post advertisements where they state the exchange rate and payment methods for buying or selling of bitcoins. You reply to these advertisements and agree to buy bitcoins with cash, online banking, Credit Card, PayPal or whatever method is specified. Bitcoins are placed in LocalBitcoins.com web wallet from where you can pay your bitcoin purchases directly.
For more see the video below:
|You can click the image above or use the link here|
* Make sure you get an education first, before you start buying and selling cryptocurrencies – as it is a new industry and there are risks!
For more information about how to buy Bitcoin with cash, credit card or PayPal etc. You can review my post How to Buy Bitcoin https://onlineaffiliatewealth.com/how-to-buy-bitcoin
Governments around the world are pumping up their supply of money, printing billions of notes and injecting astounding amounts of credit into their economies via their central banks to supposedly ‘stimulate spending’ in the economy.
Japan has been doing that for nearly two decades, without success and now we even have negative interest rates in many European countries, meaning you have to pay them interest to hold your cash. Nothing is working and things are not getting any better.
We are seeing increasing regulation, increasing possibility of warfare, increasing social controls, and the removal of individual rights to financial privacy and tightening of banking regulations and capital controls, in ever more dramatic ways.
Unfortunately, there are no positive political trends in today’s world. None of the Governments of the world are cutting back on regulations, reducing taxes, or eliminating laws anywhere. They’re doing just the opposite and making the entire global financial system even more unstable.
Those who do not want to wait for the potential collapse of the financial system and seek to sidestep this distressing possibility, might wish to pursue some type of monetary diversification as a bridge to freedom and future financial security. And one way to do that is get educated about cryptocurrencies.
|Get the Cryptocurrency BluePrint here|
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