BITCOIN SURGES AGAIN - UNKNOWN TRADER BUYS $344 MILLION WORTH
The market follows an billionaire who believes in Bitcoin. Marijuana Companies set to adopt Bitcoin as a standard method of payment.
What has this got to do with marijuana? Bitcoin and other crypto currencies are set to take over internet commerce as a method of payment, and that includes the cannabis business.
Top cryptocurrency bitcoin recovered to $11,000 on Monday, which is double its previous low of $6,000 earlier in February, 2018.On Feb 18, Bitcoin price rose above 11K $US following news that an unknown investor had grabbed $344 million worth of bitcoin last week. This purchase preceded a massive sell-off that hacked a whopping 50 percent offf the cryptocurrency market value amid nervous speculation and fear.
Bitcoin hit a wild $20,000 in December 2017 and quickly tanked to just under $6,000 by February 4. Boing, after the news of the unprecedented single buy of $344 million, other investors raced back into the market with the assurance that at least one very rich person still very much believed in Bitcoin.
The reason Bitcoin took off in the first place is that as a currency, it possessed many advantages over traditional fiat currencies. The core problem with fiat currencies is that the general public or even most intellectuals have no idea who really controls their currency. They know about bail outs, they know about the professional manipulators, they know about the big banks, and in the mix, they know that they are getting ripped off holding their own country's currency one way or the other.
Enter cryptocurrency. Bitcoin was created on a the back of advanced computer technological know how, which uses of millions of computers on the internet to keep track of all accounts and transactions in a way tha virtually eliminates hanky panky (fraud). The creation of bitcoin is controlled through a computer program which deals out coins to bitcoin clients (miners) around the world at a set rate, thus the "over-printing" of Bitcoin is an impossibility. Big business likes Bitcoin because it is not subject to international monetary controls that make larger transactions burdensome, and shines unwanted light on their business, which may or may not be above board.
The small guy loves bitcoin. People that never had a bank account can own it. There are no transaction and monthly charges, which means people can purchase, say a video for 0.1 cents. The safety of a bitcoin account is much better than a credit card, where most people have been ripped at one time. To steal bitcoin, someone needs to get a hold of your wallet key, so if you keep this information secret, you really can't be ripped off, at least, there are no documented cases of someone getting ripped off. You can definitely get ripped off if you leave your wallet ID, in say, a notepad or word document on your computer or device, and that device gets hacked into, or stolen.
So cryptocurrencies are here to stay, but the long term value of Bitcoin or any other currency is unknown, as there is no limit to the number of types of cryptocurrencies that can be created and new features of a yet to be determined cryptocurrency may dominate and push today's dominant cryptocurrencies, like Bitcoin to the sideline.
Right now, Bitcoin's volatility is due to the volatility of the new Bitcoin players, players who don't necessarily know what they're doing exactly, they're playing Bitcoin more like a Vegas crap shoot. People are mortgaging their house, stealing, ramping up their credit cards to buy Bitcoin, and when there is a drop in Bitcoin, they have to pay the piper. So a massive amount of Bitcoin is thrown back on the market as these poorly financed speculators are wiped out.
On the buy side, there is huge upward pressure. Billionaires believe in cryptocurrencies. Again, the internet is set to make cryptocurrency purchasing a standard, and this will revolutionize e-business. Content creations, say with 200,000 followers can charge 1 cent per month to followers, and gather and income of $2k per month from youtube views alone. This phenomena was not possible using traditional rip off mechanisms of central bank currencies with their gluttonous credit card transaction fees and interest.
You have everyone from Chinese Billionaires to poor Somalis with a phone now using Bitcoin. In places like Venezuela, where the government currency is a very poor option, cryptocurrencies are set to take over commerce, provided that the internet stays up. To give you an idea about what the market thinks about Bitcoin vs Venezuela Fiat currency consider the exchange rate:
" 1 Bitcoin equals 281,029,938.75 Venezuelan Bolívar" - Feb 19, 2018
BACK TO TODAY
Interestingly, total search volumes of “buy bitcoin” is three times more frequent than “buy gold”.
“Not sure who that big buyer was but many have bought this dip and have added since the rebound and additional regulatory clarity in the US and Asia,” - Alex Sunnarborg, founding partner of Tetras Capital
More than 80 percent of 100 cryptocurrencies were trading higher on Monday. Vitalik Buterin, founder of Ethereum, the second-largest cryptocurrency warned that digital money remains a very risky asset. We agree, but investing a small part of one's portfolio will make life interesting,
Good cryptocurrencies have stood the test of time and as an investment, you're not dealing with a scam, that is with cryptocurrencies that have been around for 5 years and have a market cap of billions of $. With that said, you want to know what you're doing, especially when purchasing currency. Start small, and work from there.
“Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet,” Buterin wrote on Twitter.
At the end of the day there are three dominant factors in the development of cryptocurrencies.
Integrity. The currency that is trusted is the currency that will rule, that is in a free market. Old money will seek to take over the free cryptocurrency market into developments, technologies therein.
Control and Regulations Old money, which controls 80% of currency now will surely look to take over control of the wild west of currency. This means that they will attempt, and probably succeed at regulating cryptocurrencies, and acquire / control the bulk of the wealth. In this case, you're talking about big bank - big corporation - governments and federations getting together to shut down independent currencies, while promoting their own.
Features of a Currency
The currency or currencies that provide the best suite of features - the reason currency was invented in the first place - will dominate, that is in a free market setting.
Primary features include privacy, security, fast transaction ability, ease to transfer small and large amounts of cash, vendor / ATM acceptance transferability to other currencies, We have more to say along these lines, but that is proprietary information you can't afford.
At the end of the day, everyone should get themselves $100 bucks with cryptocurrency, and probably Bitcoin (right now) and play around with it, and see what advantages are delivered to you. By owning Bitcoin now, you are still ahead of the curve, with a jump start over the masses, many of whom will be asking for advice, in the near future.
420EVALUATIONSONLINE - Soon you'll be able to buy your annual recommendation for medical cannabis in California using Bitcoin and other cryptocurrencies, You'll save on transaction fees, and the big banks won't have access to your purchasing records. The Federal Government still discriminates against cannabis users, as a recent Trump administrator was denied security clearance - which cost him his job, so new cannabis users might want to consider using cryptocurrency as a way of staying clear of this kind of thing.
A medical marijuana card allows Californians to access cannabis of all qualities from all legal suppliers, while being exempt from state tax on recreational cannabis, which amounts to $50 or more in savings per ounce. The 420 evaluation process to become a medical cannabis patient takes only a few minutes to complete. Other advantages include a defense in court against allegations, by a spouse, an employer that cannabis is an issue.
*Bitcoin Index real time info and updates
BITCOIN PAYMENT SYSTEM
*Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency. Its conception is peer-to-peer and transactions take place between users directly, without an intermediary. Symbol: ? Coins: Unspent outputs of transactions (in multiples of a satoshi) Ledger start: 3 January 2009 (9 years ago) Supply limit: ?21,000,000?.
*Founder: Satoshi Nakamoto, the unknown person or people who designed bitcoin and created its original reference implementation using first blockchain database. In the process they were the first to solve the double-spending problem for digital currency.
BITCOIN PRIVATE KEY
*Because the private key is the "ticket" that allows someone to spend bitcoins, it is important that these are kept secure. Private keys can be kept on computer files, but in some cases are also short enough that they can be printed on paper.
*Several wallet types lets private keys to be imported without generating any transaction record while other wallets or services require that the private key be swept. When a private key is swept, a transaction is broadcast that sends the balance controlled by the private key to a new address in the wallet. Just as with any other transaction, there is risk of swept transactions to be double-spent.
*How people get scammed, ripped off, or otherwise lose money using bitcoin
The bitcoin industry is rampant with scammers, so your default behavior should be "don't trust".
If you are new and inexperienced, buy your bitcoins using coinbase, or bitcoin atms. They are trustworthy sources.
Store your bitcoins on a wallet like electrum, mycelium or breadwallet - backup the key, use a cloud wallet app like blockchain wallet app
The duration of a good reputation rating is usually the best indicator of trustworthiness.
"Stay away from car garages on big highways where mechanics know they'll never see you again. Better to go to a neighborhood garage, where word-of-mouth serves as advertising." - Charlie Munger, Seeking Wisdom