CRYPTOCURRENCY - My 2 cents on the future of money
DIGITAL vs FIAT
When you understand the way the central banking system works in relationship to fiat money, you can understand why an intelligent information technologist like myself would look for an alternative method of funding and saving for the present and future. Traditional banking charges a lots of fees to use your money to make more money for themselves. They charge large amounts of interest to allow you to use credit to stretch the buying resources of the ever diminishing value of fiat currency. They base everything on a problem, reaction, solution. Any fiscal issue will bring on production of more money via any method. Fiscal issue? Create war and strife and solution is to produce more money to fight war. This process diminishes the value of the current denomination of currency.
Cryptocurrency is based on a digital asset with a fixed supply. The increased demand will always increase the buying power of the cryptocurrency. There is a simple and quick method of transmitting and exchanging digital currency and assets over TCP/IP. The display of a string of characters or QR code is all it takes to transmit unlimited funds in minutes.
Cryptocurrencies are stored in digital wallets. The digital wallet stores a copy of a public key and has a matching hidden private key that is needed for each account to perform a transaction. This is the danger. If you lose control of your wallet or just lose or do not have access to your private key you can lose your digital currency or asset. There is no 800 number to call and get your money back. Most quality cryptocurrencies have a method of backing up and recreating the digital wallet by memorizing a couple common words. This also makes it incredibly hard for security to know who has digital money when they are crossing boarders. That makes any person who looks like the use digital currency a prime suspect.
The traditional media is run by companies that are controlled by central banking system influences. You are never going to hear great things about cryptocurrencies until they have one to replace the current financial system. This system will look and smell like bitcoin but be centrally controlled and managed by the same influencers that control the fiat money system now. I'm manifesting a different world than them so I will continue to strive to a better world through a free and open financial system.
MY LIST OF CRYPTOCURRENCIES
In my opinion, the best digital holdings to have are listed below. This is not financial advice.
Currently the largest crypto is BITCOIN. I consider it digital gold.
Getting paid in Bitcoin from your Employer
I purchase Bitcoin every payday through a service called BitWage.com. They setup an account and routing number so a portion of my normal salary is diverted to a Bitcoin account where I personally hold the public and private key pair.
My other primary Bitcoin Exchange is Coinbase. I use it to purchase Bitcoin from US dollars. That doesn't happen much since I don't have much extra money. There are a large number of exchanges that I have used for purchasing other cryptocurrencies.
- COINBASE (US based Exchange that handles purchasing Bitcoin, Litecoin, Ethereum from USD. Bitcoin Debit Card)
- KRAKEN (European Exchange that handles the most popular cryptocurriences from USD or Euro)
- POLONIEX (Great exchange for exchanging less popular cryptocurriences.)
- ETHERDELTA (This exchange is like running NAPSTER back in the day. Use at your own risk. ETHERDELTA is decentralized and is great for Initial Coin Offerings based on Ethereum Tokens. All trades are on the Ethereum blockchain instead of a centralized exchange database.
Bitcoin Debit Cards
Coinbase is also used to hold a small amount of Bitcoin for my Bitcoin Debit Card from Shift Payments. This allows me to hold bitcoin and instantly convert it to USD for my most common things like gas, meals and groceries, I use this often when the price of Bitcoin is rising. When it falls I just use my normal checking debit card.
(LONG TERM HOLD and active use as alternative to traditional checking utilizing my Shift Debit Card)
Here is a link to another article on Bitcoin. https://www.cloudwards.net/what-is-bitcoin/
Ethereum is used to create smart contracts. It is programmable to function as a world computer. It's fuel is called Ether. I use Ether to run Ethereum processes and to purchase digital tokens. The token has a function and can be held or traded in an exchange. (ACTIVE USE for Smart Contracts, Initial Coin Offerings and LONG TERM HOLD)
Litecoin is a cryptocurrency with similarities to Bitcoin. Litecoin has had a larger quantity produced hence the lower value in which it can be exchanged compared to Bitcoin. I consider this digital silver. I mined Litecoin around three years ago. I hold some as a stable crypto for long term growth. (LONG TERM HOLD)
Veritaseum is a ETHEREUM Token that I'm holding for long term investment. It enables software-driven P2P capital markets without brokerages, banks or traditional exchanges. Visit veritas.veritaseum.com for more information. I hold some VERI in hope of a successful launch. This token's value should skyrocket in the future. (LONG TERM HOLD)
This one blew up and I grabbed some early after the ICO.
I also do some cloud mining using a service called Hashflare.IO.