Bitcoin is Better Than Banks

Through my conversations with friends, family, and strangers about cryptocurrency, it is clear to me that most people do not fully understand the potential that Bitcoin and other cryptocurrencies have. That isn’t their fault–the Bitcoin community hasn’t done the best job of communicating the problems that cryptocurrencies can solves, the potential benefits of implementing a system with digital currency, or why we even need to replace the system that we have.

Let’s start with the problems that the current system has and how digital currency can fix them.

Oversupply/Susceptibility to Inflation and Devaluation

Currency as we know it comes in the form of bills and coins. These can be issued at any time without any limit or hard cap on the total supply. If corruption infiltrates our government and decides to print as much currency as they want, there’s not much there to stop them. We don’t vote on the currency supply–we don’t even really pay attention to it as members of the general population. Think about it: if the US government suddenly prints $100 million, doesn’t that make the dollar bill in your hand more common? Less valuable?

Bitcoin has a fixed supply. There will only ever exist 21 million Bitcoin in total. Most cryptocurrencies have a fixed supply. This can only ever be changed through a voting system that would change the code to allow for a larger supply. This ensures that the people using the currency have control over the supply and can prevent oversupply and inflation.

 

Privacy/Security Vulnerability

Privacy issues occur every day in the financial world. You may have even experienced this yourself. Every time you buy something online you have to put in numbers that if compromised, could affect your ability to purchase essentials like food, rent, and electricity. Credit card numbers cannot be easily guessed but they can be easily skimmed. This can be done through a physical device placed on the reader or hidden in a malicious website. It’s insane that we trust our financial security to numbers that we have to enter and expose daily.

Bitcoin transactions are completely secure. You do not need to give any personal information to send a Bitcoin transaction. You need only enter the wallet address of the receiver and specify the amount. No numbers, names, or any other private information that people can steal. Nobody but you can spend your Bitcoin from your private secure wallet. You can complete a Bitcoin transaction online with somebody looking over your shoulder and still not worry about security.

 

Durability

Paper and metal money undergo a tremendous amount of wear and tear on a daily basis. A paper bill takes a beating just from being in a wallet. It gets folded and creased possibly dozens of times a day. Metal coins are more durable but still can corrode. Perhaps the biggest problems with coins is that they are a waste of resources and can be quite a nuisance. Carrying change in your pocket or car is flat out annoying. Coins can be lost or even thrown away before they ever get spent.

Bitcoin is electronic. There is no wear on a Bitcoin. They will always be usable. We will not have to use taxpayer money to put infrastructure in place to replace or repair it. It will never get lost. All small amounts will remain in the wallet. There is no change to keep track of and we can divert all the resources dedicated to designing, minting, and replacing our current currency to other much-needed areas of our government.

 

Transparency

We do not know exactly how many dollars are in existence. We don’t know where they are located. We don’t know when our government moves large sums to obscure locations. We know very little about our money supply.

Cryptocurrency can enable us to understand more about our money supply. We will be able to tell exactly how much of our currency exists and where it is concentrated. Complete anonymity is possible with crypto, but we will still know if large amounts are being hoarded or accumulated with the purpose of manipulation. This is something that we desperately need in a time where there is very little distrust in our government and the massively wealthy.

 

Digital currency is not the only application for blockchain technology. There are so many industries that can be helped with this technology and we are just barely scratching the surface of the potential for this revolution. As always, if you have questions or comments on anything I’ve written or you’re looking for a place to start, feel free to DM me on whichever social media platform you desire.

 

Passive Income In Crypto: Part 1

Everybody wants to make money while they sleep, right? I do too. It’s always been a dream of mine to live off of passive income while I do whatever I please with my time. There are a lot of ways to do this, but they are all either extremely difficult to get started or require a massive amount of capital. Let’s look at the ways by which you can accomplish passive income in your everyday life:

Interest

Mutual Funds

Mutual funds can be great–for preserving already existing wealth. A good solid mutual fund will be lucky to get 8-10% a year, which is awesome if you’re looking for a solid way to store wealth while also making some gains. Is it a practical way to pay expenses and generate income, though? Let’s say you have $100,000. You put it on a mutual fund and it gets you 10% over the course of a year. Congrats, you’ve made $10,000. Take some taxes and brokerage fees out and you’ve got a cool $7,500 in your pocket. It might pay your rent for a year, but after you’ve done that you still have $100,000 sitting in the account and it’s going to generate close to the same amount every year. So, even assuming that you have $100,000 free cash, it’s not a great source of passive income for the average person who wants to use that money to better their lifestyle.

High Yield Checking/Savings Accounts

Again, these are great for people who need to store wealth, but not so great for those that want to generate substantial income passively. My credit union offers 2% APY on their checking accounts. I’d rather keep my money in crypto (any crypto).

Bonds/CDs

The interest rates on these are dismal. Last I checked CDs were under 2%, and you need to lock up your money for a lengthy period of time. You’re kind of getting the point here, right?

 

Businesses

Rental Properties

Buying a rental property was one of the first options I explored. It seemed like real estate was the business to be in if you wanted to be wealthy and property also happens to be an excellent, tangible asset in my opinion. This option obviously comes with some drawbacks. Again, you’ll have high overhead costs because you’ll either have to shell out a massive amount (to the average consumer) in cash to purchase a property or you’ll have mortgage payments if you choose to finance the purchase. You’ll also need a knowledge of home improvement and basic construction as you’ll definitely be dealing with repairs, unless you want to pay somebody to handle all of it. Finally, the tenants. I’ve only lived in two apartment buildings in my life and I can confidently tell you that I now have absolutely no interest in being a landlord. It sounds passive. I can just buy a property and collect the rent every month. Hell no, man. You can’t. It’s way more trouble than it’s worth unless you have several properties in a high-rent area and you really know what you’re doing. Finding good tenants, ensuring they pay, fixing the property when they inevitably destroy it, etc. Does it all sound worth it to you? Because it doesn’t to me.

Opening A Business

Awesome! If you either have a great idea, lots of money (or the ability to raise the money), or some really great connections in a niche market. You’re looking at high overhead, massive startup costs, and a really high risk in most industries. You’ll probably have to quit your job and go without steady income for a few months while you get things up and running. Assuming you make it past that, you’ll need to find some great staff that you trust to run things while you’re away. The only way this option becomes at least a little passive is if your business really takes off and you end up being able to leave the store alone with your staff all day. Most people don’t make it that far.

Opening An Online Business

This is probably the most feasible out of all the options I’ve outlined so far. Opening an online business is fairly easy. You can do it in an hour if you’re comfortable using the computer. The real struggle here is marketing the business. You need to know at the very least, how to use SEO and Facebook ads incredibly well in order for you to have a chance at success. It will also help you to know how to code in HTML, JavaScript, and CSS at the very least. This will take some trial and error. You will burn through a couple thousand dollars to get it started and it will not come easy immediately. There are huge success stories, though. It can work and it’s probably your best option if you’re looking to open a business. In the beginning it won’t be passive, but if you’re able to figure it out it can definitely become passive.

 

So, here’s the problem. Almost all of these options require a massive amount of startup money to be viable sources of income independently. Our financial system and economy is currently set up in a way that benefits the already wealthy. If you $2 million and you are in a mutual fund that earns even 8%, you’re sitting on a yearly income that is 4x that of the average American. All because you already have a lot of money. Examples like this are the reason that crypto is so appealing to the younger generations who have less money. They know that there is a better way to live. They know that our economy can be better and our financial system is completely rigged.

Cryptocurrency opens doors to a world that was previously out-of-reach for the impoverished, unbanked, and underpriveleged. It makes living a life not filled with 40-hour work weeks possible. There are ways to make viable passive income that will actually make a difference in your life by using cryptocurrency. I have exclusively used trading as a way to make money, but this year I want to build passive income that will ensure I have more time to spend with family and do the things that I want to do without worrying about money. In part two, I am going to outline my plan for how I plan to achieve this.

 

 

 

$GUP Update

GUP has been filling out this triangle exactly as I had predicted.

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As expected, we bounced off of support. I have a feeling we will head down again to retest. If we break the support, I’ll be looking to unload what I have for a profit and buy in at a better entry. From here, I expect to see some upward price movement to meet the resistance again. In my opinion we will have a couple more days until we break out of this formation.

Market Update

Last night, the market received a pretty thorough beatdown. The only coin that I sold during this was SALT, as I did not like the way that it was going against what I thought would happen and thought it would be best to secure my profits and move on to the next coin. I am still holding ETH, OMG, NEO, ETC, CAPP, ICX, SUB, and a few other small coins.

On the market dip, I added ZCL (upcoming Bitcoin Private Fork), and GUP (Coin I exited earlier the other day but it has catalysts).

The reason for the dip seemed to be that South Korea was contemplating a cryptocurrency ban. This is nothing new. This type of FUD (Fear, Uncertainty, Doubt) comes up every couple months and the market always bounces back. I will be watching Bitcoin closely because it’s an indicator for the rest of the market so if things look bad there I may decide to move some funds to USD to hedge against the market dip and look to buy some stuff while it’s low. The BTC bounce from the dip has been rather weak, so it may continue down. The Altcoins, however, have been bouncing back pretty well overall.

I will update with a chart on my entries later today. Thank you for reading!

Crypto: How to Not Be An Idiot

One of the greatest things about the cryptocurrency markets is that they are mostly completely unregulated.

One of the terrible things about the cryptocurrency markets is that they are mostly completely unregulated.

Being safe while you are trading and conducting your cryptocurrency business is one of the most underrated skills to have. There are dangers here that don’t exist in other markets or parts of your life. Let’s just dive right in.

DON’T

EVER

EVER: 

  • Respond to an unfamiliar email asking you for a username or password for one of your accounts
  • Click on a link from an unfamiliar email claiming that there is a problem with your account. If the email wants you to check something in your account, go to your app or the secure website and log in from there. NOT from a link.
  • Store your entire portfolio on an exchange. If you can move funds that you are not using off the exchange, you should do so. Obviously, if you have all alts that you don’t have wallets for, you don’t have much of a choice. I like to take extra funds, put them into a secure wallet that I control the keys to.
  • Pay somebody on twitter who has a “secret tip” on a hot coin.
  • Invest in a ponzi scheme. See: Bitconnect. They will promise you daily returns on your investment. DON’T. DO. IT.
  • Publicly declare how much money in cryptocurrency you have or how it is stored. You are begging to get hacked.
  • Give your identifying documents to a non-trusted website, or a sketchy crypto exchange.
  • Keep funds on a sketchy crypto exchange.
  • Keep funds on any exchange where you do not have 2FA enabled.
  • Not check the URL bar of the website you are on to make sure the URL is spelled correctly and it is not a fake website. When you log in, you’ll find your wallet cleaned out.

Honestly, there’s lots more stuff. But for beginners looking to execute a few basic trades, that should just about cover it. If you ever have a question, feel free to DM me on Facebook or Twitter. Don’t take any risks. Happy trading. Be safe.

Setting Up a Bitcoin Wallet on Your Phone

It’s always handy to have some Bitcoin stored on your cellphone. Using your phone, you can scan QR codes for quick transactions or deposits to exchanges. My favorite Bitcoin wallet for my phone is Breadwallet. It is secure, extremely user-friendly, and one of the most trusted apps for mobile crypto storage. To be clear, you should not usually store large amounts of cryptocurrency on a phone. If you do however, you should know how to properly set up a wallet and make sure that you never lose your wallet information. Today I’m going to walk you through setting up a Bitcoin wallet with Breadwallet.

Step 1: Install the Breadwallet app

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Step 2: Create a New Wallet

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Step 3: Set a PIN

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Step 4: Prepare to Write Down Your Paper Key

  • I always write this down on paper and store it in a fire safe. I also keep a text document on a USB drive with this information. DON’T LOSE THIS INFO.

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Step 5: Write Down Each of the 12 Words

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Step 6: Wait For the Wallet to Sync (this will take a few minutes)

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Step 7: You can now send and receive Bitcoin using the “Send” and “Receive” buttons on the bottom. Now, you just follow the steps outlined in my earlier posts. You’ll need an address to send to for sending Bitcoin and the “Receive” tab will simply provide you with your own address or a QR code so you can easily receive Bitcoin from others.