Tag Archives: Cryptocurrency

Cryptocoin and Blockchain Article Roundup – Feb 21, 2017

Cryptocoin and Blockchain Article Roundup – Feb 21, 2017

Here's an article that ties one idea, the DAO (Decentralized Autonomous Organization) in with the more recently popular topic of Blockchain. It really does make sense. The idea of the autonomous business entity won't die. Read some of the latest discussion about it in this article:

Rebranding The DAO: The Contentious Blockchain Concept is Back

Monero, the fifth largest digital currency by market capitalization, still struggles to build a 'white hat' reputation simply because of its advanced privacy feature which hi-brows think attracts 'the wrong crowd'. Read the latest discussion on the issue here:

Drugs, Code and ICOs: Monero's Long Road to Blockchain Respect

Oh goody-goody. California lawmakers want to protect charity raffles from the evils of bitcoin. It's a good thing they're not wasting time repairing dams. Read about it here:

California Lawmakers Consider Barring Bitcoin from Charity Raffles

New algorithm promises to make slow the trend toward centralization of Z-cash miners, thus democratizing the process. Read about it here:

How the Equihash Algorithm Could Democratize Zcash Mining

British Parliamentarians will discuss (or is it "debate"?) key issues about the status of bitcoin, digital currency, and the blockchain as it relates to money creation in English society. The UK government generally is pro-bitcoin but the banking establishment has been rather reticent to embrace it. Read about it here:

Money creation may well be the biggest economic issue of our times.

Could blockchain-related opportunities in one industry result in a talent and brain-drain from one industry to another? Probably not to any significant degree because the technology is creating opportunity almost everywhere. But it is creating some notable movement of some high achievers. Read one such example here:

Blockchain Capital Lures Bitcoin Analyst Away from Wall Street Firm

Well Buckaroos…that's our Cryptocurrency & Blockchain Article 6 Pack for today. Thanks for dropping by. You're also invited to join us over on Markethive where you'll find a vibrant digital community on online entrepreneurs. Our community if free to join and if you're promoting a business, brand, service, or cause online…Markethive has a great blogging system that will give you massive 'Reach'.

Also, if you need a freelance copywriter to help you with your business, contact me…Art Williams. Email here.

 

 

 

 

 

Cryptocurrency and Blockchain News Roundup, Feb-17-17

Cryptocurrency & Blockchain News Roundup – Feb. 17, 2017

 

 
It's nice to get away from the promotional aspects of the cryptocurrency movement, step back, and take an objective looks. Here are three such views.
 
The Truth About Bitcoin----------------------------------------------------
Stefan Molyneux looks at the rise of Bitcoin and discusses its history, mining, fees, altcoins, regulatory hypocrisy, worldwide awareness, comparisons to gold, anonymous transactions,…
Bitcoin: What You're Not Being Told----------------------------------------------------
Bitcoin has a fatal design flaw that almost no one is talking about. The current bubble is just the tip of the iceberg. Script and sources:…
The Hidden Dangers of Bitcoin-------------------------------------------------
Bitcoin is a revolutionary decentralized architecture which can be used for an untold number of incredibly valuable services – including the transfer of financial value. As Bitcoin adoption…
 
The vast majority of people still know little or nothing about cryptocurrency (which includes bitcoin) but those that do know something about it often hear that it's possible to make money by trading it in the same manner as people who trace any other commodity… as if pulling money out of the sky. Here are three videos that explain how it is possible to make money trading cryptocurrency but it's also possible to lose your all your money.  
 
How I Started Trading Bitcoin & Altcoins - Was it Worth it?

How I Started Trading Bitcoin & Altcoins – Was it Worth it?

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Hey guys! Thanks for stopping by. I go into how began trading bitcoin & some of the opportunities I missed prior to the bitcoin bubble. Hope you enjoy – and as always – thanks for watching!
How to trade Bitcoin & Altcoins - Beginner Level

How to trade Bitcoin & Altcoins – Beginner Level

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Hey guys! Thanks for stopping by. In this video I go directly into how to make altcoin/bitcoin trades on Bittrex exchange. This video is designed for beginners only. I'm always encouraging…
Can You Make A Minimum Wage Trading Bitcoin?---------------------------------------------------
LAST WEEKS VIDEO: ► https://www.youtube.com/watch?v=pJcG_0vHC1Y Making a minimum wage trading bitcoin and altcoins isnt simple. SUBSCRIBE TO BTCKYLE (It's Free guys)…
 
It's almost impossible to deal in cryptocurrency without using an 'exchange'. The process is not extremely difficult but there are some 'hoops' to jump through. Here's a video that lays out the basic process. 
 
How to Use a Cryptocurrency Exchange
How can you trade one cryptocurrency — like Bitcoin — for any other? It's not actually hard, and it's even a little (or a lot!) of fun. Whether you're looking to dabble, or you're…
 
Some people will find it encouraging that the UN is saying nice things about bitcoin.---------------------------------------------------------------The UN needs Blockchain to achieve its goals
I recently traveled to Davos, Switzerland for the World Economic Forum, and was surprised to find blockchain on the minds of many of the leaders convened there. Even those who were not…
The dust has not settled on the ways that cryptocurrency will be related by the government...but it surely will.-------------------------------------------------------------The devil is in the detail: SEC regulation of blockchain...
Blockchain technology has captured the imagination of the financial services industry. Unfortunately, the adoption of the technology is impaired by a lack of clarity from regulators,…
 
It's possible that cryptocurrency may, directly or indirectly, bring more democracy to China. At the same time, the Indian government has not been acting very hospitable toward bitcoin but nevertheless at lest this one venture capitalist is putting a lot of his money into developing the potentially huge Indian cryptocurrency market.
 
Chinese Bitcoin Exchange BTCC Stops Withdrawals for a Month -...---------------------------------------------------------------------------------
Major Chinese exchange BTCChina has announced the suspension of bitcoin and litecoin withdrawals. In effect, all of China's 'big 3' bitcoin exchanges have now enforced a month-long…
Bitcoin VC Investor Tim Draper Re-Enters Indian Market...

Bitcoin VC Investor Tim Draper Re-Enters Indian Market…

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Prominent venture capitalist and prolific tech and bitcoin industry investor Tim Draper is making a return to the Indian market for early stage investing in startups in one of the world's…
Aeady, bitcoin and cryptocurrency has a lot of people thinking. It will, undoubtedly, continue to evolve it is already making a lot of people some money (as an investment) and appears to have some social benefits.
 
Investment Analyst Pegs Bitcoin Price to Hit $3,678 If SEC...----------------------------------------------------
Emerita Capital, a provider of quantitative analysis for investment assets, believes bitcoin price could hit $3,678 if the Securities and Exchange Commission (SEC) approves the Winklevoss…
How Blockchain Will Evolve In 2017---------------------------------------------------
In the past, blockchain — which is known as a distributed ledger technology for both financial and non-financial transactions — seemed like a mysterious concept that only technologists…
How the blockchain is helping stop the spread of conflict...---------------------------------------------------
Subscribe to WIRED A diamond's past is rarely crystal clear. Knowing a stone's origin can stop fencing and insurance frauds and winnow out synthetic diamonds or those sourced in war…
 
Asia is where the most activity with bitcoin and cryptocurrency is right now...especially in its mobile aspects.---------------------------------------------------------------Op-Ed: Why Blockchain and Asia are a perfect match
Sending money around the world is slow, expensive and sometimes even unreliable. I have lived out of India, my home country, for more than three decades. Like many expatriates, I…
If bitcoin is to serve the consumer, it will be in popular bitcoin and cryptocurrency apps like these popular ones.--------------------------------------------------------------
If you are a bitcoin enthusiast, there are a few bitcoin apps you need to know about, as they might come in handy. Whether you want to earn a few free satoshis playing games in your free…
 
The confusion, and debate, continues on the future of altcoins.----------------------------------------------Why altcoins are dying and how to make one in under an hour
When we refer to altcoins we mean alternative cryptocurrencies. Most of these altcoins (99%), utilize the blockchain and are a mere fork of the bitcoin code in one form or another. You do…
Yes, speculators love doing it. Especially when famous entrepreneurs are 'in the play'.----------------------------------------------Bitcoin Price Jumps 6% as Bitcoin ETF Decision Nears
The Bitcoin Exchange Trading Fund application filed by the Winkelvoss twins is nearing its decision date next month on March 11th. As traders are eagerly awaiting the SEC's decision on…
There actually is no real Santa Claus. That's OK, but there are misconceptions about bitcoin too.---------------------------------------------5 Common Misconceptions About Bitcoin
Satoshi Nakamoto's creation is often seen as something it is not, as there are a lot of misconceptions that simply don't want to go away. Sometimes, because some want to smear bitcoin,…
 
 
Researchers Claim New System Makes Bitcoin Transactions Harder...----------------------------------------------------
Researchers from North Carolina State University, Boston University, and George Mason University in the U.S. have created a new system that makes it harder to detect bitcoin transactions….
Canada's SecureKey to Build a Blockchain Digital Identity...---------------------------------------------------
Leading identity and authentication provider SecureKey and a Canadian non-profit coalition have been granted funding from a research center within the U.S. Department of Homeland Security…
Germany's Largest Financial Platform Lists Bitcoin as Major...---------------------------------------------------
Finanzen.net, Germany's most popular and largest financial news network and platform, is listing bitcoin amongst other major reserve currencies such as US Dollar, Japanese Yen and Chinese…
 
 
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Cryptocurrency and Blockchain News Roundup – Feb.02, 2017

 

Cryptocurrency and Blockchain News Roundup Feb. 02, 2017

 
News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. Billionaire investor sold off investments in , and Mr. Soros, who…
The time will come when you won't be able to buy a cup of coffee without being traced, warns investment guru Jim Rogers. To control people, governments will increasingly seek to hunt down…
 
An Arizona legislator wants to amend state law to account for blockchain signatures and smart contracts, public records show. HB 2417, introduced on 6th February, would make a signature…
"When I looked at the dating industry, I saw it was expensive to reach a critical mass of users and open a niche dating site," says Yonatan Ben Shimon in a Skype call from Tel Aviv….
Microsoft (Thailand) has said that 2017 will see five digital technology trends – that includes blockchain tech – driving the country's digital transformation, pushing organization's…
 
Merely weeks after cautioning residents that bitcoin companies weren't authorized or licensed to operate in the country, India's central bank is reportedly not including bitcoin under the…
Banks in the United Kingdom are turning a deaf ear to bitcoin exchanges, despite the government's pro-blockchain position, according to financial writer Roger Aitken, writing in Forbes….
 
 
Thailand's largest bank by revenue, Kasikornbank Pcl, has unveiled that it is planning to introduce a new FinTech platform by the end of the year as it attempts to prevent fee income from…
 
After nearly two years of experimenting with blockchain, the National Settlement Depository (NSD), Russia's central securities depository, believes it now knows what incumbents must do to…
 
Thanks very much for reading our news roundup. If you're a writer and would like a great platform for getting your content (attributed properly of course!) in front of lots of readers, please join us in Markethive.
 
 
Art Williams
Freelance Copywriter
email: xpatflipper@gmail.com
 
 
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Cryptocurrency Reputation Alert

Cryptocurrency Reputation Alert

I realize that a tool is only as good or bad as the saint or criminal who uses it but the following article makes a good point: When too many of the wrong kind of characters start using something, it sooner than later leads to guilt by association.

The following article points out the dangers to the reputation of bitcoin, and cryptocurrencies in general, from the fact that there are so many gambling sites that use it. I don't gamble but I'm not anti-gambling. Nevertheless, for such a young and (in some ways) vulnerable technology, I think everybody would be wise.

Undoubtedly there are/will be some trickle-down advantages from the exponentially accelerating amount of bitcoin that is flowing into online gambling.

But when you combine the potentially shady and societally disruptive side of cryptocurrency gambling with the equally scary explosion of shady crypto-oriented MLMs popping up all over the place, it's not good for anybody…. except the crooks.

Just like aren't as easy to figure out as most people think they are….neither is something as new and complex as cryptocurrency.

Proceed with utmost caution. We must police ourselves. 

Here's the article I'm referring to (which came, btw, from www.themerkle.com).

Will Bitcoin’s Reputation Suffer due to Online Gambling?

 

Art Williams
Freelance Copywriter
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Do a Vanishing Act With Cryptocurrency

Do A "Vanishing Act" With Cryptocurrency

Maybe not 100% of the people interesting in cryptocurrency are primarily interested in its anonymity feature but a lot of them sure are.

In this video, the founder of HowToVanish.com, (his name might be "Lohengrin" but that sounds rather operatic to me) points out the danger of our data being manipulated, in the course of typical internet commerce and activity,  without our knowledge, against our will, and possibly even to our detriment.

Toward the end of the video, he recommends making all purchases possible with bitcoin (or another cryptocurrency).

I totally agree with him. I'm so sick and tired of seeing and reading about big business and governments treating normal people like databytes.

What’s Going On With Coinbase vs. IRS?

What’s Going on With CoinBase vs. IRS?

 

Most people doing anything with cryptocurrency or Bitcoin have at least heard of the fracus going on right now between the IRS and the popular cryptocurrency exchange Coinbase.com . For those who might not be familiar with the situation or its significance, this is my summary based on the research I’ve done.

The IRS, as the Pursers of the Dark Side, is most assuredly a not big fan of Bitcoin and cryptocurrency. Apparently they recently identified 3 tax evaders who didn’t pay what the IRS thinks they should have in taxes. Since 2 of these 3 were Coinbase users, the IRS is stalking Coinbase now.

Note: (Note: “evasion” is illegal but “tax avoidance” is not)

Almost anybody who deals with government agencies or bureaucrats knows that the often don’t distinguish between what they have the legal authority to do vs. what they have the power to do. Frequently they do what they want anyway.

In the case of the IRS and cryptocurrency, the IRS does have some regulations regarding cryptocurrency reporting but they are muddled and unclear. The regulations (as I understand them) give various reporting requirements to cryptocurrency exchanges but rely on the ‘honor system’ (plus the IRS’s confused and complex regulations thus far) for declarations from the individual taxpayer.

In this case, Coinbase contends that it already complies with IRS regulations as they presently exist and further says that the IRS demand is too broad and burdensome and presumes the guilt of the entire Coinbase customer base.

Note: Looking at this IRS behavior it’s easy to see that Irwin Schiff, was right. Irwin was an expert on the US Constitution and US jurisprudence as it relates to the Federal Income Tax and its enforcement. His contention to his dying day was that was that the federal income tax was totally misunderstood by the average citizen and illegally interpreted and enforeced by the IRS… with the connivance of the US court system. He successfully defended himself from the IRS for years and also assisted many of his students in doing so he yet was eventually arrested and tried in an illegal “show trial”, illegally imprisoned, denied proper medical care, and died after over 10 years in prison.

Irwin’s great book, The Federal Mafia, still downloadable for free in PDF form on his website, www.paynoincometax.com, is a guaranteed eye-opener and gives a better understanding why cryptocurrency is surely something which keeps IRS agents, government fat-cats, and the industrial elite awake at night because it is a direct challenge to their control over the affairs of men and nations.

Many observers agree that the IRS will eventually get Coinbase’s records but it might be a short-lived Pyrrhic victory. If the general public continues to learn about and adopt the cryptocurrency and the blockchain, they eventually simply won’t need ‘big government’.  

What has recently rekindled interest in the IRS vs. Coinbase situation is that since the IRS has not thus far been able to intimidate Coinbase into giving up their customer records (because Coinbase knew the law), the IRS is using something it does have the power to do…i.e. Issue a “John Doe Summons”.

A John Doe summons is the type of summons which allows the IRS to force a company to surrender their customer records because the IRS says the suspect somebody (but they don’t know who) within the group is guilty of tax evasion.

Many people interpret the IRSs’ actions as simply a witch-hunt designed to intimidate the general public and virtual currency sellers into the charade of “voluntary compliance” and if the IRS gets away with this tactic with Coinbase, one can only wonder what they might do next.

Note: Irwin Schiff often correctly said that the US tax laws are extortion… not voluntary compliance. Anybody interested in this subject should delve into his excellent and timeless videos on YouTube.

But that what the ongoing saga of the battle between Coinbase and the IRS is about. Now you know. Is it a good idea to be a Coinbase customer right now? IMHO…. Probably not.
 

Art Williams
Freelance Writer
Case Studies and eMail Copywriting
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A Simple Explanation of Blockchain

A Simple Explanation of “Blockchain”

Sometimes it takes a while to thoroughly understand a new concept. Blockchain is such a term for some people. One of the things that process difficult is the fact that it sounds like something that it isn’t….or it seems so at first.

In the case of blockchain….It’s not actually a ‘block´. Or is it?

And it sure isn’t a ‘chain’. Or is it?

Actually, when the term is explained the way that I’m going to, it is a block and it is a chain. But first, let’s try a definition of blockchain from another angle. An angle of use or utility.

Blockchain is, like many other great technological advances, a tool designed to solve a problem. It was invented to make certain things easier to accomplish and more efficient.  

In the evolution of capitalism, we see that many great inventions and advances were efforts to make something easier… such as these advances in computers and the internet….

  1. The internet made it much easier for specialists to publish.

  2. Blogging made it even easier for everybody else to publish.

  3. WordPress revolutionized blogging and publishing even more.

  4. Google revolutionized information search and retrieval.

  5. Facebook dramatically changed social dynamics (some would argue for the worse).

  6. YouTube revolutionized media creation, entertainment, and distribution.

  7. The ‘cloud’ made it easy to store digital material and eliminated some IT resource problems.

  8. Outsourcing sites like Fiverr, Odesk, et.al. revolutionized outsourcing.

And there are probably other ‘advances’ that could be added to the list too. But the point is that each step forward made something easier that it had been.

So….Blockchain needs to be seen as a tool for making something easier.

But…. making what easier?

Blockchain makes recording transactions (i.e. anything that could be described in finite terms) easier. Currently the most publically topical type of transaction that blockchain is used for is cryptocurrency transactions but it can be used for many other types of transactions too.

The important connecting factor here is that transactions need to be recorded in some way…especially financial transactions and blockchain specifically makes that process easier, faster and more secure. Even to the point of total anonymity.

The unique aspects of a blockchain include the following characteristics:

  • Blockchain is decentralized

  • Blockchain has no central controlling authority

  • Blockchain Is owned, maintained and updated by its component the nodes…i.e. the members.

  • Block is much more efficient and trustworthy.

Note: Not always mentioned by public relations representative of various industries touting blockchain in their operations is the fact that it has great potential for reducing the number of 'humans' on their payrolls.

To summarize thus far…blockchain is an advance in efficiency. Especially in multiple attributes related to saving time and user confidence.

Now…onward to the terminology to which most people cannot attach a mental image.

The term ‘blockchain’ comes from the way that blockchain transactions have been illustrated as being sequentially and carefully been added to one another… somewhat like a chain of connected items, each lending strength to the other, and then packed in a box. The beginning and end of the chain relate to the transaction itself.

It is also enlightening for consumers who think that blockchain only relates to cryptocurrency to realize that many experts in the financial community see blockchain as having other and far greater application to banking. To their minds, most of the bitcoin media buzz misses the point or at least doesn’t mention the full benefits to established financial institutions.

And here’s one more definition:

A member of the audience at the Fintech Week in London in September 2015 ask the panel, “Can you define blockchain in one or two sentences?” Panelist Lee Braine, a computer science PhD in the CTO office of Barclays, responded, “It’s a way of chunking transactions into a batch, called a block, and then a way of hashing them with the previous block block to ensure immutability.”

In final practical summary for the average user of blockchain technology, the more you try to define blockchain the more confusing it seems to get. It’s better to just keep it simple. And then suddenly you realize that you really don’t care about ‘the definition’. You understand that it just works and you just want to use it.
 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
eMail Me

 

PoW vs. PoS – What’s The Peoples Choice?

PoW vs. PoS – What’s The People’s Choice?

Because Bitcoin and cryptocurrency is still so new, it’s hard to say conclusively what ‘customers’ actually want. And even if one wanted to venture an opinion (like I will here) it’s still important to remember that blockchain and cryptocurrency is not a totally homogeneous market and there certainly are different niches within the overall market too.

But if you are, or plan to be, a cryptocurrency user one thing you most likely do want is security and speed. That’s where these two terms, Proof of Work (PoW) and Proof of Stake (PoS) may confront you.

When I started hearing those words, it seemed like they were important. Since the definition wasn’t really specified in the context where I heard them, I did some searching. Here’s what I found. I’m not a guru in this stuff but I think this is pretty accurate:

First of all, remember that blockchain is an algorithm (albeit a very unique one). Within and around the Bitcoin algorithm there are peripheral and subset algorithms. Two of those are PoS and PoW. My understanding is that the two never occur simultaneously but every cryptocurrency uses either one or the other.

What Are PoS and PoW Used For?

PoS and PoW have to do, in varying degrees, with the security and speed issues of cryptocurrency. Specifically relating to the security issues, remember that one of the core unique benefits of the blockchain is that the transactions that take place within it are supposedly true and authentic.

How did they get that way?

Because they were verified.

How or by whom?

The transactions were verified by the other people or entities on the blockchain. In the case of PoW, that number of people is fewer because the coins are mined by a relatively small group of people.

In the case of PoS, that number is larger because PoS systems employ a more decentralized/dispersed mining and verification system. It’s more of a communal system while still maintaining the anonymity that cryptocurrency users usually like.

Both processes have been adequate up to now but the reason (as I understand it) that some well-known cryptocurrencies (Ethercoin) are switching from PoW to PoS is because the PoW is less democratic, more centralized (comparatively), much more resource intensive (read “expensive”), and more susceptible to corruption via what is known as a 51% atttack.

Note: In a 51% attack, a person or (more likely) a group of people (in this scenario…miners) taking over the system for their own nefarious purposes.

In a PoS system, the strength of it is not so much the fact that the people who mined the coins are doing the verification but the fact that the people who currently actually posses the coins mutually share the transaction verification process.

In both methods the objective is to ensure an authentic, fast transaction but many users and experts now seem to feel that a PoS system give not only quicker transaction verifications but also is less vulnerable to ‘takeovers’ by 51%’ers.

Note: My understanding is that a 51% attack is, up to the present time, only hypothetically possible. But when you consider the amount of money going into the cryptocurrency environment, you can’t blame decision makers for being cautious.

To state in another way, PoW is strong on trust because the validations come from the people who did/do the mining. PoW is strong on validation because the validations come from massive consensus.

This validation power, as you will see, is also sometimes referred to as “agreement”. But, as I understand it, it means the same thing in most contexts.

One soon-to-be-launched altcoin, MyCryptoCoin (MCC), will use a totally new, very versatile and robust eWallet based on the PoS algorithm. The MCC eWallet will be truly revolutionary because its speed will match current credit card processing times yet it will be far more functional with its interface with multiple payment systems and financial institutions–to include not only cryptocurrency but also fiat currency and institutions.

And… it will offer privacy features that current credit/debit cards do not.

Summary and Recommendation

In my neophyte opinion, the average cryptocurrency user would probably be wise to make sure that whatever cryptocurrency they use is based on a PoS algorithm. As I understand it, PoS systems have faster, safer, and more accurate transactions.

 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
Email me here

 

 

 

Dollar Cost Averaging With Cryptocurrency

Dollar Cost Averaging With Cryptocurrency

This article is really about Dollar Cost Averaging (DCA) and how it relates to investing money into cryptocurrency. DCA is an investment philosophy, well known to equities investors. It became a hot investment topic when the general public began to learn about mutual funds back in the 80’s.

I first heard about DCA in the late 80’s when I was a licensed seller of mutual funds with the A.L.Williams Company, the originator and pioneer of the “Buy Term and Invest The Difference” personal financial planning philosophy.

One highly reputable mutual fund which we sold at that time was the Templeton family of funds. Sir John Templeton is now deceased but he was one of the original pioneers of smart mutual fund investing. His company was very successful… partly because it wasn’t even headquartered in NYC so his research was always more independent.

In fact, his company was one of the first mutual funds which diversified internationally. He was very innovative and somewhat contrarian for his time but he had a highly respected reputation as an investor, businessman, and philanthropist.

His company later merged with Franklin Funds and is now known as Franklin Templeton Funds.

DCA was one of a three part investment strategy which has pretty much always been effective for those who have followed it. The three parts of the strategy are:

  1. Diversify

  2. Invest Long Term

  3. Dollar Cost Average

Assuming you know what mutual funds are, you’ll know that many funds are diversified. You’ll also know that most people who hold mutual funds do so for the long term. But you might not know about DCA.

DCA always works….in a rising market. It does not work in a consistently falling market (unless you’re looking for tax write-offs). It does not so much ensure a profit (at least not in traditional equities) but it does protect against a significant loss.

Little blips in the market don’t matter. In fact, they’re expected. But any problem with minor downturns is always negated by a long-term perspective — in a rising market.

The key to making DCA work is to invest a consistent amount of money at regular intervals. Using equities as an example: Investing $100 @ month, the investor gets 4 shares when the shares sell at $25 each. But if the price of the stock goes down to $20 he/she gets 5 shares. Which is better in the future? 4 shares or 5 shares?

But what about if the price of the share goes up, i.e. it costs more. For example, $33 @ share. That means that the investor still invests $100 but now only gets 3 shares instead of more. That’s still OK because if the market is rising, it’s still a good investment.

As an example, I sold a program of just a small amount of money invested in one of the funds to my pastor back in Galveston, TX. A couple of years ago when I touched based with him (he’s now retired) on the phone, he said to me, “Art, I’ve got to thank you for something.”

I of course had no idea what he was talking about. But he proceeded to tell me that he had maintained that investment program in his Templeton fund for a long time. And he told me it had turned out very well for him.

That’s the proof of the pudding for Dollar Cost Averaging.

So how does that relate to Bitcoin and cryptocurrency?

It means simply that most people need not worry about ‘technical trading’ in their cryptocurrency part of their portfolio….unless it’s something they just ‘get off’ on. And, make no mistake about it. There are lots of people who ‘Day Trade’ in cryptocurrencies. But day-trading is not for the average person.

But for the average person, long-term investing of tolerable amounts of ‘money’ in cryptocurrency carries not only minimal risk but also relatively assured capital preservation and upside potential.

Certainly getting in on a coin launch at 10 cents @ coin is a great opportunity when the coin launches at $1 and is reasonably expected to appreciate rapidly thereafter. But even if you have to get ‘in’ at $1 or $2, that’s still a good deal if the coin appreciates rapidly.

Cryptocurrency is an investment but it’s a very new kind of investment. In my opinion, it only barely falls with the traditional definition of “investments” (mostly because it’s not something tangible like a stock certificate, bond, deed, or other better-known type of investments). But again, ‘money’ isn’t really what most people think it is any more,is it?

Investing is not gambling. Gambling is putting money at risk by betting on an uncertain outcome with the hope that you might win or make money.

However, at this point in time putting some money into a reputable cryptocurrency, in whatever amount is comfortable to you, is not a gamble. The existing growth charts, when combined with prudent research and due consideration, definitely make Bitcoin, and many reputable altcoins (such as MyCryptoCurrency), a wise investment and almost immeasurable risk.

Just ‘play’ it wisely by Dollar Cost Averaging. Or put a lump sum into it and set your alarm to come back and check it in a year or two. And don’t think you’re going to be a ‘trader’ if you’re not already one. You don’t need to do that… to win your game.
 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
eMail Me

 

Bitcoin Advocates Close To Trump

Bitcoin Advocates Close To Trump

President-elect Donald Trump has brought at least three individuals into his new administration who are publically pro-bitcoin. Who are the individuals and what makes them interesting?

They are:

  • For the position of US Director of Office of Management and Budget, Trump appointed US Congressman Mick Mulvaney, a Tea Party Republican, a hardline fiscal conservative known as being very outspoken about drastically cutting  federal spending on social programs. Mr. Mulvaney is also a founding member of the bipartisan Blockchain Caucus, aka the "Bitcoin Caucus" whose purpose is to help congress remain current on crypto/blockchain technologies and currency, and how to develop policies to advance them. He is also a very outspoken advocate of abolishing the Federal Reserve.

  • Peter Thiel, one of the original founders of PayPal, vocal bitcoin advocate, and outspoken gay billionaire has been offered a position on Trump’s transition team executive committee but has yet to accept. Nevertheless, the offer shows that Trump is not shy about bringing bitcoin advocates into his administration.

  • Betsy DeVoss, daughter-in-law of Amway co-founder Rich DeVoss, has been picked by Trump to be Secretary of Education but has yet to be vetted and approved by the appropriate congressional committee. Her position on bitcoin is unknown but it might be assumed that being closely associated with Amway she might be pro bitcoin. Ironically… her kids go to private schools but considering that she has always been an advocate for quality education she might possibly be presumed to be pro bitcoin.

  • Texas Governor Rick Perry, an outspoken advocate for bitcoin, has been nominated for Secretary of Department of Energy and is awaiting congressional confirmation.

A few other prominent politicians who have in recent years spoken positively about bitcoin include:

1. Jared Polis

A US congressman known for saying that the US dollar should be banned instead of bitcoin.

2. Dan Elder

A candidate for US House of Representatives in 2016 famous in the bitcoin community for funding his campaign solely by bitcoin and stating that bitcoin would be a way to bring integrity back to the notion of money.

3. George Galloway

A British politician and mayoral candidate in London noted for pledging to run his campaign budget  on MayrosChain, a blockchain-based  public expenditure management system. He stated on his funding page:

“Now, for the first time, the radically disruptive technology of blockchains can provide a technological backbone for true, 100 percent transparency. Political accountability, it seems, is about to take on a whole new meaning."

4. Andrew Hemingway

Andrew Hemingway, a Republican who ran (unsuccessfully) for New Hampshire Governor in 2014 and spoke once about using blockchain tech for elections.

5. Gulnar Hasnain

Over in London again, Gulnar Hasnain, a Green Party candidate running for a local government position, became noted for taking donations via bitcoin and also an alt coin called Onename, and a micro-tipping tool called Change Tip (recently closed).

In this interesting Youtube video, she shares her evolution into a bitcoin advocate.

She once said in an interview that she would like to draw attention to the positive aspects of blockchain technology and its potential to “transform democracy worldwide” and added that there were many similarities between her party and the principles of distributed ledger technologies.

She further added, “Surprisingly, the Green Party is vocal on the same issues as the bitcoin movement – more decentralised power, smaller government, a need for a shift in the concentration of power in the banking system and a more inclusive society.”

6. Rand Paul

Back in the US, everybody knows Ron Paul’s son, Rand Paul, a noted Libertarian who currently serves as Kentucky as one of its two Senators. He accepted bitcoin donations during his brief, unsuccessful campaign for US Republican Presidential nominee.

Kentucky Senator Rand Paul, who officially announced his bid for the 2016 Republican presidential nomination, started to accept bitcoin donations in April this year. The Washington Post called his decision to accept donations in the digital currency a "genius political move".

However, during a TechCrunch panel earlier this year, Paul said he was "an outlier" on "the bitcoin things".

That might have something to do with the reason he didn’t win the nomination…. Maybe he just wasn’t Libertarian enough. In a Bloomberg News report, he was quoted to say, "I've been fascinated by the concept of it, but I never would have purchased it myself. I'm just a little bit skeptical."

So, there are probably other politicians who are slowly evolving a positive attitude toward bitcoin and cryptocurrency if for no other reason than their hope that it might keep their sorry asses in office. Whatever happens, you can bet that as public awareness and favorability it increases, most of them will see it as a politically expedient bandwagon to jump on.

Trumps recent statements and appointments are indeed a positive thing but exactly when, where, and how the components of Trump’s administration will fall into place remains to be seen as does precisely how his new administration will deal with the massive tactical problem of (as he says) “draining the swamp”.

To say that there is a lot of inertia in the federal bureaucracy, the upper echelons of Wall Street and the global banking industry, and the US “presstitute media” would be an understatement. Such massive anti-freedom, anti-capitalistic, anti-libertarian machines as have evolved over the recent several US political administrations will take an equally long time to unravel and properly reconstruct, if for no reason other than the fact that it will take time to ferret out the dormant agents of the old regime and its way of thinking. They will not ‘go quietly’.

A few observers are speculating that Trump might try to pull a rabbit out of the federal hat by taking the US economy toward some kind of bitcoin-based monetary system.  

That’s possible but, as far as it goes, there aren’t any indications that such a move is being seriously considered…yet. Plus, it’s doubtful that the existing government bureaucracy would eagerly cooperate with something so totally libertarian.

One notable speaker, author, and economic forecaster, Doug Casey, has conjectured that the US government’s only possible way to avert a total collapse of the overly debt-burdened US economy would be to come out with a federally sponsored and/or designed version of cryptocurrency… which Mr. Casey conceptually calls, “Fed Coin”. See my recent article about Fed Coin and Mr. Casey.

I agree that Trumps appointments are looking interesting but I also think it’s still too early to start popping champaign corks about what it means for bitcoin and cryptocurrency in general. For the time being, the future of such things is still in the hands of private sector entrepreneurs. Whatever the Trump administration might try to do, the devil is still in the details. And the solution to the world’s money problems are still TBA (To Be Announced).
 

Art Williams
Freelance Writer
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