Blockchain and Chryptocurrencies

December 16, 2017 // 0 Comments

I wasn’t an early adopter of the blockchain technology. In fact, I made my first transactions involving bitcoin in 2015, seven years after it was first implemented. I still remember them: two separate transactions totaling 38 US dollars. Wow, quite a fortune spent, isn’t it? Those 38 bucks now have a 79x ROI (doesn’t include only price difference, but also accumulation without purchasing more). Do I regret not investing more at that time? No! Greed was never my ally. At the beginning of 2017, despite my virtual ROI from the increase of bitcoin price compared to US dollar, I had a rant toward what I considered to be an artificial price based on smoke. Since then the price exploded even more. How much will it continue to rise or when and how much will the correction be, I don’t know, but in the meantime, I understood there is great value, still unexploited behind the blockchain. However, if you decide to invest, be aware, chryptocurrencies are, at this point, highly volatile and speculative, and their volume and liquidity unsuitable for large investors (so, if they enter or exit the market, they can produce huge waves). What Is Blockchain In Simple Terms? The blockchain uses a different mechanism to store data. While banks, credit card companies, assurance companies, governments, and so on, store digital data by copying it to central locations, a blockchain distributes digital data across its network. I really appreciate the blockchain’s distributed model, and I think it will be the one to embrace in the future. But let’s go over the pros and the cons of each approach: Pros for copying data to central locations: – quicker transactions – lower costs Cons against copying data to central locations: – risks by having the data stored in one central place […]


Bitcoin Dorado

March 4, 2017 // 0 Comments

Bitcoin. Cryptocurrency. With every threshold conquered by bitcoin compared to US dollar, it brings new adepts and users to the new cryptocurrency that only exists as a series of bits on a device or network. We already do most – if not all – of our payments online or using a credit card, so the jump from that to a currency that only exists in a virtual world is a small step. Bitcoin has two characteristics that make it “special”: Fixed Total Amount There is a pre-determined fixed amount of total bitcoin. About 21 million bitcoin when the entire bitcoin would have been “mined’, now over 72% of it being in circulation. For a currency – or cryptocurrency – that’s a bad thing, especially if the total amount isn’t that huge. If there is a market for bitcoin and a price for it – and there are – and someone or a group can control the majority of the existing bitcoin – and they can – they can control the entire market, as small as it is. Anonymity Every bitcoin address is anonymous, meaning it’s not linked to a person, to an organization or company in any way. Which means it is a preferred payment method by people who would rather stay anonymous. Most payment processors and e-wallets who include bitcoin as a payment option will link these transactions to you, so they are no longer anonymous, but the model itself permits complete anonymous transfers. Bitcoin is almost the single representative of the cryptocurrency world which created enough traction already. Yet, the sales of one large retailer in Romania in 2015 were over 65x more than the entire bicoin mass in circulation right now world-wide (funny how I used the word “mass” for an entity without mass). Which means bitcoin […]