Take some time to read, your next choice could change your life!
In 2009 an anonymous developer with the pseudonym of Satoshi Nakamoto, a regular partecipant in mailing lists which were serving as a meeting place and exchange between Cypherpunks , anarcho capitalists and unlikely characters (among them Julian Assange, and others legendary characters gathered around the so called Crypto Anarchist Manifesto), wrote a white paper called "Bitcoin: A Peer-to-Peer Electronic Cash System".
On January 3 2009, Satoshi,who gave birth to the the foundation of the bitcoin source code, mined the very first block of the so called blockchain. As it was the very first (called genesis block), and it was not possible to generate it from a previous transaction, as it happens for blockchain, a random string was inserted, a phrase taken by Times of the same day, a clear reference to the ongoing financial scandal at that time, that of the banks bailout.
Original headline was "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
To get our money circulating, we need what is defined by the lexicon of the political economy as "trusted intermediaries".
Alice sends 100 monetary units to Bob; Bob won´t be able to claim he received only 10, hence the need of intermediary. From here, the rooted need.
The definition is easy to understand, especially regarding the first term (intermediary), while by definition the "trust" of the intermediaries is generated by the rules and regulations of the financial sector empowered by the laws.
Trust at that time, and probably still today, was undermined by the facts: byscandals, court trials, fines, imposed to banking institutions, and the harsh repercussions that these behaviors had on the lives of millions of people.
Unfortunately, there were no alternatives to that model of money circulation.
Then came bitcoin.
Bitcoin simply removed the need to have trusted intermediaries to allow money circulation, using a decentralized and peer-to-peer system (node-to-node), implementing a brilliant cryptographic solution mixed with the "game theory" ,that prevents transactional being counterfeit, and at the same time resolving a known problem in financial environments (and not just those): the issue of "double spending".
The problem is actual and well-known: to understand its magnitude, even in the era of smartphone s, think of this recent case: ING Bank has just announced that it has developed a new system for the sale of oil and natural gas based on blockchain technology, that aims to solve, among other things, the problem of double spending.
A few days before the official announcement (July 2017), an oil tanker on itsroute from african coast to China, before reaching the destination port, had been sold 3 times.
In a few years, what was initially unknown to most and reserved to a few nerd, libertarian and cyber punk, became a global business, which is now moving nearly $ 200 billion.
Many already know that bitcoin in 2012 can be bought for few dozens of dollars, while at today's date, bitcoin has touched $ 4,500 (7000 USD IN NOVEMBER 2017, UPDATED BY AUTHOR)
Is it still worth investing in bitcoin and crypto currencies today?
Obviously, the answer is yes. Let's see why.
This graph represents Bitcoin's value from 2012 to date, on a logarithmic scale (the ranges between the order-axis prices decrease exponentially, as noted in the chart).
Tho things are clear even for the less experienced ones: the first is that blue line that represents bitcoin price support in the given time range (and how rigorous it is, despite time has passed); The second one is represented by those red lines and their relative price levels - the enormous decrease in price (DIP) of bitcoin since it has appeared on worldwide exchanges, that has narrowed 90% of its own value.
There are reasons that can try to explain both these circumstances.
These are the economic characteristics that qualify a currency:
In this short excursuswe will consider two of these features: scarcity and divisibility.
Bitcoin is a "scarce" good. The new currency issue rate (inflation) is written in its code. At today's date 16,529,900 bitcoins were mined and are "circulating". The inflation rate is about 4%, while the maximum bitcoin limit that will be issued is 21,000,000, due to a technical limit in the structure of the blockchain. In other words, already 3/4 of all bitcoins have already been mined, and issuing new ones entails increased encryption difficulty (mining difficulty), requiring more and more computing power.
When no more bitcoin will be mined, the computational power which is required to ensure the security of the distributed database, will only be economically sustained by the fees generated at the time of each transaction.
If every bitcoin owner had only one, only 21,000,000 people could have a bitcoin. Indeed, today, as can be seen from the below table, almost 40% of the bitcoins are stored inside more or less 1800 wallets.
Bitcoin is therefore a scarce asset, much less than some of the currencies adopted by states, which have the power to inject liquidity through the emission of new currency, when deemed necessary by their central banks, often in an attempt to influence the fundamental parameters of the macroeconomic environment, such as the inflation rate.
Bitcoin is also infinitely divisible.
Today, to calculate transaction costs, we already use the so called Satoshi, or 1 / 10.000.000 part of a bitcoin.The average transaction cost today is about 400 satoshi per bite, or 100.000 satoshi per transaction, equal to about 0,001 bitcoin
The union of these two factors can explain the exponential growth of the price of bitcoin, as represented by the blue line in the above graph.
Many analysts, mathematicians, influential people, such as John McCafee or Bill Gates, claim without biting that bitcoin price will rise to $ 500,000 in 3 years;some predict a much higher value. The same people have predicted the price of bitcoin in the last two years following that blue line, and to date have not been denied.
Others say that bitcoin is a speculative bubble; to this day his obituary has been printed and circulated hundreds of times.
Among the reasons of the detractors of bitcoin, the most argued is the example of the technology stocks bubble, coccurred between 1997 and 2000, called DOT COM BUBBLE. But the numbers point to a different scenario.
Among all the possible arguments, this graph is particularly appealing due to its simplicity. it seems evident that there is still plenty of space available before reaching the roof!
The world still has to be aware of bitcoin, although the first signs of this tendency are clear, with banks and investment funds in line to enter their with their capital into the crypto space.
Bitcoin is scarce, as we have been able to observe. This make me think that when everyone will ask for bitcoin, its price will go "to the moon".
Bitcoin volatility is another factor to consider. Bitcoin suffered pricing adjustments in a colossal scale, the worst reached a price drop of 90% of its entire value!
It's happened in the past, and nothing can prevent us from thinking it may happen again in the future. Bitcoin always prooved its ability to recover, and yet its volatility represents the greatest risk (along with other sneaky amenaces) for inexperienced investors.
Many in the past sold their bitcoins at heavy loss, for the benefit of so called "whales" (investors with large capital availability that influence the market and buy big stocks of crypto during times of price crash, with huge discounts).
With cold mind we all may think we are immune or clever enough,but many are wrong. during "bear market", when the market is crashing, the descents of prices are much stronger for crypto , rather than stock exchange market, or forex market. This because of a different general liquidity.
It has happened to many more people than you can imagine. Moreover, this makes very difficult to choose which are the best "entry points", prices levels when to buy and enter the crypto market.
Another very important and underestimated risk is represented by the "conservation"
Bitcoin seems like a virtual currency, but in reality it's a cryptographic system, with a public key and a private key. Your bitcoin portfolio is an alphanumeric string and represents the private key of the system.
If you lose that key, you lost your money. If anyone gets that key, you've lost your money. Hackers around the world are bitterly attracted by the bitcoin wallet, inventing daily new threats to enter computers of unknown users and steal keys and money. Do not underestimate the problem, it has also happened to the most famous exchanges, such as Bitfinex!
Bitcoin custody, which requires a computer to live, is a very serious fact today that can't be entrusted to chance or to the lack of experience of the average computer user.
Finally, the world of blockchain is in a hurry. A new industry is raising (in this case, the comparison with the "dotcom" is appropriate: the internet industry was emerging in fact at that time) with all the opportunities, the excesses, distortions, the traps that characterize these moments of genesis. To bet on the wrong horse can be fatal. And to know on which horse to bet, you must have a considerable level of computer and technical knowledge, which is missing for the most.
For these and other reasons, we have created the Easycrypto service.
Easycrypto is ideally representing a community of people combining their efforts to overcome the present and future threats of investing in the crypto space, which is necessarily a medium or long-term investment for the reasons outlined above.
There is a need for highly specific multidisciplinary skills to ensure that all participants a certain grade of tranquillity, and easycrypto aims to be the focus of that know-how.
We have selected and are selecting the best traders, risk managers, IT engineers, world-class crypto space experts, to allow less informed users to claim their place in the crypto space, minimizing the risks and concerns associated with this new world that is evolving fast.
For the first time, we offer a homogeneous, complete, multidisciplinary and specialized service in this field.
We have come to the end. The question everyone makes, sooner or later. How much can you earn?
It's hard to say, what we can do is to look critically the profit percentages of the first 8 months of 2017 (yes, just as while you were talking with your banker that was trying "sell" the other derivative product or stock fund on emerging markets, of course in loss).
Easycrypto is a service designed to reduce risks and maximize profits within the crypto currencies. We have entrusted our savings to banks and institutions, thinking of taking calculated risks; the recent record has taught us that nothing can be considered safe.
One of the pillars of our service is Algorex forex,
You can control the trend of trading yourself by visiting this url: https://algorex.easycrypto.io