Its on the lips of everyone on and offline, across social media, across the internet, mentioned in notable publications such as the Wall Street Journal and CNN Money. But what exactly is cryptocurrency?
Whether it is a sponsored ad or post, someone you know on Facebook or Instagram talking about investing in bitcoin or talking about the rising and falling market of cryptocurrency, thanks to the current global economy and the fluctuating values of the US dollar, British pound and other notable currencies, bitcoin and cryptocurrency make be more than than The Geek Money Exchange.
There are many notable experts on bitcoin and cryptocurrency, but one in particular in former British glamour model, Secret Veneers CEO and bitcoin trade/entrepreneur Amy Secret—whom we interviewed here—may be one of the most respected and knowledgeable.
Below, I catch up with Amy as she gives The Inscriber the low down on cryptocurrency and the rise of bitcoin…
What is Bitcoin and how does it work? Bitcoin is the first decentralized digital online currency, a cryptocurrency that emerged after the financial crisis and is not underpinned by a bank, it also allows people to bypass banks and traditional payment methods.
That sounds complicated right? and difficult to get your head around, so let me give you an example of something that is decentralized.
Think about this, nobody owns the internet its the most vast and powerful network that humans have ever created – but there is no “internet inc” so it is decentralized. Lots of companies and individuals all build the infrastructure of the internet, and it works across borders and even ideologies.
In 2008 an anonymous researcher came up with an idea called “bitcoin” a digital currency that doesn’t rely on a single particular bank this is a decentralized solution. There is no “bitcoin inc” in charge of the bitcoin network, rather its a peer to peer network that maintains a shared transaction ledger called the blockchain.
In bitcoin instead of bank accounts money is moved between addresses kind of like email. Bitcoin is non geographic, if economies fall or governments change- bitcoin wont be affected and it isn’t affected by different currencies in different countries. It is also much more internet friendly, but the biggest winners here are the billions of people across Asia and Africa and other places that have internet connection but corrupt banks.
With my traditional bank I can shop online and send money across the world even though it’s really slow and I will be charged expensive fees to send MY money. Non-geographic, global money is exactly what people need – it works even if your government or banks don’t work.
Bitcoin is created by “miners” who use high powered computers to solve complex mathematical problems -they must be stored online using a digital wallet, and can be bought and sold using an online wallet on a smartphone app or computer such as Coinbase, Luno & Blockchain.
In 2011, you could buy 1 bitcoin for less than $1 today 1 bitcoin is worth $11,050!!! bitcoins float against conventional currencies and their value is determined by supply and demand, with only 21 million bitcoins available they are in limited supply, many bitcoin traders and professional analysts believe it will extend even further in price. Harvard academic and bitcoin investor Dennis Porto believes that given a few years, the bitcoin price worth could reach $100,000 per coin by February 2021.
This rising price has attracted more media attention and new users, and articles like this cause more people to pay attention to the currency people decide to buy and the value goes up even more, triggering more media interest and more public interest. The interest in bitcoin is now greater than ever turning those who hoarded large amounts into millionaires. With the limited amount of 21 million bitcoins mined in total that will ever exist the value cannot be diluted. There are currently just over 16.7 million in circulation.
Should you invest in bitcoin? bitcoin is safeguarded against fraud and theft through an independent and decentralized set-up, as well as being free from transaction fees. It has also given great returns to some investors, with the price jumping up dramatically on occasions – it had people who invested £2000 five years ago would now be millionaires.
HMRC have announced for the UK no special tax rules for bitcoin transactions are required, because investing in Bitcoin is treated as gambling and betting wins are not taxable, plus bitcoin is also VAT exempt.
The risks involved. The implications for bitcoin are obviously hard to measure. In reality there is a whole industry, fields of research and grassroots growing – much like when there were executives from AOL and young students were trying to explain to people what is this “internet thing” back in the 90s.
But with billionaire business men such as Sir Richard Branson and Bill Gates investing and taking bitcoin as payment for Virgin airlines and Microsoft, and Lady Michelle Mone selling property in Dubai for bitcoin you should be taking note!
The riskiest thing you could do in life is do nothing. Everything worthwhile has a risk. I tell my clients only invest what you can afford to lose and minimise the risk. Even putting your money in the bank is a risk! when you deposit your money into the bank it is no longer your money, and if that bank goes broke, you end up with nothing.
Life is a risk, crossing the road is a risk – but we do that to get ahead in life and to get anywhere we must move forward.
Educate yourself, Bitcoin in my opinion is one of the most important inventions in all of human history, for the first time ever anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction, it’s the dawn of a better more free world. There is a lot to learn but it is not beyond your grasp.
The positives. Here are the major advantages of bitcoin;
- 1.) It’s growing faster than any other, currency, stock or commodity right now and is set to do so for the foreseeable future.
- 2.) It’s entirely private…no government tracking, nobody can ransack your house and steal your bitcoin.
- 3.) It’s borderless in an increasingly global society.
- 4.) It’s transportable….without reliance on a institute.
- 5.) Your bitcoin is yours and is not being used to pay MP expenses, corrupt war mongering institutions, or anything else you have a moral objection to.
- 6.) It is an anchor point for all other crypto currencies that all have uses and more and more emerging ways of using them….most increasing cost savings and cutting out middlemen.
- 7.) A bitcoin based money transfer process is free and globally instant at the press of a button. If I want to send a large amount of money to another country I have to physically go into the bank and ask permission, I have to order the money into the branch, I get asked security questions, I have to prove my identity, I have to explain what it is I am buying, I have to wait 3 days for it to arrive at the destination and I have to pay a fee to send my own money.
- 8.) Bitcoin is way of storing money that doesn’t require banks or peoples names, a tool for private anonymous transactions. Of course, Google would throw up heaps more advantages but for me…these are the top reasons that apply to me personally and why I invest. If you would like any further info on how to invest today free and instantly on autopilot with absolutely NO experience you can visit my website www.tradelikeamy.com
Special thanks to Chrissy Rose, Amy Secret and Intrigue Management UK for their time and assistance during this feature.