How To Be A Bitcoin Billionaire?! What’s Next For CryptoCurrency? | What’s Trending Now!

November 27, 2019

Bitcoin, the entirely-digital currency,
has hit a record high in value, but could the bubble burst at any moment? Welcome
back to What’s Trending, I’m Martini Beerman. Make sure to LIKE and
SUBSCRIBE for more news. Bitcoin just hit a record high of $11,000
per coin. That is a lot of dollars. According to market watchers, in January,
a bitcoin cost about $700 and in less than a year who
soared to past $10,000. I’m not a mathematician, and I genuinely
don’t normally use stocks, but that seems like a huge increase. Many people are
seeing this as a sign that bitcoin is here to stay. And since I have money in
bitcoin, oh do I hope it’s here to stay. Trader Tom Dante tweets, “Getting really
bored of seeing people say, ‘Bitcoin is a bubble,’ and that it will crash. Makes me
think they’ve never witnessed a proper bubble.” But other people are not so sure
what to make of the news. Paul Bassett Davies writes, “If I had a bitcoin for
every time someone tried to explain bitcoins to me I’d have a lot of bitcoins, and
no idea what to do with them.” You might have heard of bitcoin, but maybe you’re
confused about “cryptocurrency.” So how does it all work? Cryptocurrencies are a digitally created currency. Instead of cash being regulated
by a central or federal bank, cryptocurrencies are administered by
thousands of computers networked all across the world. And this
decentralization — meaning that the government is not involved in the money
at all, they don’t regulate it, they don’t have anything to do with it — is what
makes cryptocurrency so revolutionary. And just because you’ve been hearing the
word bitcoin in the news doesn’t mean that bitcoin is the only cryptocurrency
out there. Cryptocurrency is like Ripple, LiteCoin and Aetherium use similar
technology and have also gone up in value. So if you feel like you’ve missed
that bitcoin train you can always go and invest in LiteCoin or Aetherium or any
of the other many cryptocurrencies out there. But what a lot of people don’t
realize, is that when you buy a bitcoin you don’t have to actually buy a full
coin. Right now if bitcoin is up to $9,000 that does not mean that
you have to spend $9,000 to get a coin. You can actually get a
fraction of a bitcoin. So if you have $50 in your pocket and you’re like,
‘I got nothing to do with this $50. Let’s see if I can make some money off of it,’
and you want to throw it into a Bitcoin, you might end up with like .00009 of a bitcoin, but that $50 could easily become $100 by
tomorrow at the rate that bitcoin is going. But just remember the bitcoin is like a
stock, so just like other cryptocurrencies, is it can go up or down or just crash
completely leaving you with nothing. As bitcoin has recently surged in value, Ethereum also has seen a record high. Bitcoin, however, is still the market
leader. The same computers that processed Bitcoin transactions are also creating
new bitcoins in a process called, “mining.” The computers “mine” bitcoins by solving
increasingly difficult puzzles with a special piece of software. The
transactions form a block of information called a “blockchain.” Miners that donate
their CPU power to allow Bitcoin to process transactions are awarded with
bitcoins. However, the reward is then cut in half
after a certain number of transactions. It is estimated that around the year of
2140, the currency will reach its predetermined limit of 21 million
bitcoins. So with a limited supply, or a finite supply and increased demand, it
means that the price ultimately should go up, but again this is a stock and it’s
all based on how much confidence the public has on it in order for it to
thrive. And I can’t help wonder who is the strange genius who invented bitcoin.
The truth is that no one actually even knows. Satoshi Nakamoto is credited with
writing the research paper that led to bitcoin’s blockchain banking, but many
speculate he’s not one man, but an entire team. Nakamoto barely had a trace online
before the paper was published, and he disappeared soon after WikiLeaks began
to accept donations in bitcoin. So what is bitcoin good for? Obviously, you can
buy stuff with it. You can walk into a store with a gold
bar, which obviously has value, and you can walk into a store with your bitcoin.
Now, you’re not likely to be able to trade whatever it is in the store for
that gold bar, but your virtual currency, your bitcoin, that’s got a lot of value
these days. In tech-friendly San Francisco, there are many merchants who
accept bitcoins as well as cash, credit and debit. And like other currencies, you
can keep your cryptocurrency in a wallet. Apps like coinbase allow users to buy,
save and spend crypto- currencies, but there are other websites
like which have a more comprehensive list of other cryptocurrencies that you probably wouldn’t find on coinbase, which I think is
limited to like three of the main ones. Since using bitcoin is pretty much
untraceable they’ve also been used in a lot of shady things. Bitcoin was a
preferred method of payment for the now-defunct dark web marketplace, The
Silk Road. Shoppers could buy anything from marijuana and oxycontin, to automatic
weapons. It’s also like a place for people to buy gross things like kid
porn, or put a hit out on people. I mean, I’ve read all kinds of crazy stuff
that’s happened in that black market. But many people are using bitcoin and other
cryptocurrencies for investing. In May of 2017,
The Guardian profiled many young people in China who earned thousands trading
bitcoin and speculating on the currency market. But with any new currency comes
new risk, and bitcoin is no stranger to that. Bitcoin information is usually
stored in a password-protected digital wallet, but if you’re like me and you
have like 75,000 passwords which you can’t remember at any given point, what
do you do if you forget your password? In 2015, it was estimated that about 30% of bitcoins mined so far have been lost for good. Apps like coinbase
insist that you use an authenticator app, which has a unique code should you lose
your password or need to get into your account. Also, added stress, you could lose
your money to a hacker in an online robbery. In 2011, bitcoin exchange site
Mt. Gox was the target of a hack that simultaneously allowed the hacker to
steal 2,000 bitcoins from customers and cause the value of Bitcoin to plummet.
Because, of course, if people don’t feel like their money is secure in the
currency, they sell. And then that means that the currency goes down. After the
Mt. Gox incident, bitcoins fell to just $17 a share. That is insane and
I’m really sad that then isn’t now. So, yes. You could lose your money in the
cryptocurrency exchange, but when last I checked, my friends all
told me not to keep any cash on my house, and just to go completely to online
banking, and I’m pretty sure you can get hacked there too. Shortly after the
Mt. Gox theft, Bitomat, the third largest exchange at the
time, had accidentally overwritten its entire wallet, deleting customers’ money
in an instant. That is absolutely insane and terrifying,
and again because there’s no government involvement, there’s no federal insurance
that if something like this happens you’re actually gonna have any cause to
claim your money back. By the summer of 2011, MyBitcoin, the oldest Bitcoin
digital wallet service, stopped responding to emails and soon, 25,000
bitcoins were gone without a trace. Experts are warning would-be bitcoin
investors, like myself, to be aware of the risks. The value of Bitcoin is still
pretty volatile and subject to change. And if you’re like me, you’re kind of
hoping it changes in a massive way so you can go right in there and buy, buy,
buy. In November of 2016, bitcoin was valued at $6,500 when it
suddenly dropped $1,000 in value overnight, eventually falling to
around $700 by January. So if you’re all about that rollercoaster
thrill ride, then just hop right on the bitcoin train because it is not for the
squeamish. On Instagram, Katy Perry posted this photo of her asking billionaire
investment guru, and one of the world’s richest people, Warren Buffett, about
cryptocurrency. And Buffett seems to think that the bubble is about to burst.
In a speech to business students this year, Buffett warned that, “You can’t value
bitcoin because it’s not a value- producing asset.” Adding, it was “a real
bubble.” And we’re in kind of a weird impasse because money experts seem to think
that it’s doomed, while tech experts seem to think that
this is incredible. Tech guru John McAfee tweeted, “Bitcoin has accelerated much
faster than my model assumptions. I now predict bitcoin at $1 million by the end
of 2020. I will still eat my d*ck if I’m wrong.” He is a very hungry man…
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