Crypto-Currency

Cryptocurrency, is a disruptive technology (the blockchain database), which is being applied to all sorts of applications, such as finance, security, privacy, identification, ownership, contracts of all sorts, and publishing.

For example, ZeroHedge provides this list:

  • Payments
  • Store of Value
  • Programmable Money
  • Stable Coins
  • Privacy
  • Digital Ownership
  • Decentralized Utilities
  • Alternative Finance

There is a blockchain token in your future. It may be one produced by a national central bank or by some kind of world bank or by a private company or group. But before too long you will probably use some kind of blockchain technology – perhaps without even knowing it. Because most everyone will. Anything requiring a permanent, transparent record will most likely end up on a blockchain.

You can track cryptocurrencies here:

Track cryptocurrency news here:

Blockchain technology will radically change the way things are done, and the few companies or groups that find the best way to introduce their blockchain applications to their target market will become the next Microsofts, Apples, and Googles. The problem, as of late 2019, is that over 90% of existing cryptocurrency tokens are going to fail. The simple way to resolve that problem is to just buy and hold some bitcoin (BTC), since it is kind of the gold standard of cryptocurrencies.

Buying Cryptocurrencies

The landscape is changing rapidly, so take the following as a snapshot of a point in time. Crypto Exchanges (that serve the USA): Kraken, Binance, Coinbase and/or GDAX, Gemini, Poloniex, and (?) Shapeshift.

Coinbase lets you purchase Bitcoin or Etherium with a credit card. This is an easy way to get your first cryptocurrency exposure. Then you can trade that for others. Circle lets you send money from a credit card and so I think you can use it to fund the crypto exchange of your choice. You can always send a standard bank wire, too, but a cheaper method, if your crypto brokerage of choice allows it, is to send an electronic check (ACH transfer).

CryptoCoinsNews and the CryptoCoinTalk forum are pretty good resources on this general subject.

Or you can check in on CoinTelegraph, which is according to one expert the #1 cryptocurrency group in the world.

Michael Robinson, editor of Strategic Tech Investor, is following this industry from an investment perspective. I don’t know how good his stuff is, but he looks well credentialed to be doing it.

Shah Gilani, who looks to me to be a very talented investment writer, is also following it. Here is his, What Every Investor needs to Know about Trading’s Science Fiction Future.

Trading

Will Hatten, on November 25, 2019, offered a persuasive testimony for using an automated trading system called ProCryptoBots, noting among other things that it makes money in both up and down markets. He says that during the 2019 bear market drop of about 80% in BTC value this system profited over 500%.

As for taxes, he adds:

Taxes on crypto in the US are … draconian … . Crypto-to-crypto trades are now treated as property transfers, which means that every single trade is a taxable event and must be reported. …

What you can do – trade futures on Bitmex. It’s identical to trading bitcoin except that you are trading a financial derivative that is pegged to an exchange price for BTC instead of the real thing. …

Future trades are not treated as property transfers like crypto is, so all gains just go into your annual capital gains tax … . This tax rate is better than your regular income tax by about half. …

PCB does have Bitmex functionality, so just make sure you use this option if you decide to have the bot trade your account.

Further Research

Some cryptos that are of interest to me, besides BTC and ETH, are these:

  • Siacoin (SC) – The post-cloud. Decentralized and encrypted (content owners hold the key) data storage (cloud on a blockchain).
  • Monero (XMR) – a privacy token.
  • TRON (TRX) – Free entertainment sharing and content publishing.
  • Substratum (SUB) – Decentralized, censorship-free internet hosting and publishing.
  • LISK (LSK) – Decentralized app development platform using Javascript.

Here is the Craigs List of bitcoin: Local Bitcoin.

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