Adam is a technology consultant with Altus. Bitcoin, and digital currency more broadly, is one of the most divisive concepts of our time. The idea of a currency which is not controlled bitcoin value end 2014 a state or a corporation and which maintains such a high level of privacy for its users is a much needed relief for some and a threat to the whole economic and political system to others.
3,000 by the end of the year As bitcoin is primarily used for trading or transferring value, the value of bitcoin is controlled by the total value of goods in transit tied to bitcoin as the payment medium. As more and more trade is taken up using bitcoin as the transaction medium, the value of bitcoin will rise to equal that trade. However, governments cannot control the supply of bitcoin so as the currency becomes more widely used, a continuous increase in the value of bitcoin is predicted. This theory is born out of research undertaken by the World Economic Forum. Money laundering poses a big threat While many will associate the use of bitcoin with the purchasing of illicit materials from sites such as the now defunct Silk Road, there are now potentially much more lucrative opportunities for criminals. The dark or shadow economy is estimated to take up somewhere in the region of 17 per cent of the world’s total GDP.
Due to the level of anonymity bitcoin provides, there is huge opportunity for its use to avoid anti-money laundering legislation. Any increase in use here would result in a reflected uplift in the value. As bitcoin becomes more pervasive, we predict governments will try to control it, try to understand more detail about how it is being used, and try to monitor its use in the dark economy. However, because of the structure of bitcoin, and the encryption and anonymity which is baked into blockchain, there is very little opportunity to control this. The only clear way for nation states to control the distribution of the currency would be for them to buy up the supply and stockpile bitcoin, as many have done with gold. Regardless of what bitcoin is being used for, the key takeaway is that it is being used more and more widely, and that this expanding use is resulting in a corresponding uplift in value which shows no sign of slowing any time soon. These views are not necessarily shared by City A.
To bring you the best content on our sites and applications, Meredith partners with third party advertisers to serve digital ads, including personalized digital ads. Those advertisers use tracking technologies to collect information about your activity on our sites and applications and across the Internet and your other apps and devices. You may have heard the word Bitcoin or cryptocurrency and wondered what in the world is that? Plain and simple Cryptos are a medium of exchange. Cryptos have been defined by some as a digital currency. And you may ask what is that?
One of the reasons that so many people are getting involved in, and using Bitcoins or other cryptocurrencies in transactions, is because they see it as an alternative to their currency which is losing its value through its increasing supply. Whereas by design Cryptos announce how many there will be and once that amount is reached for that particular coin no more will be made or released. For example there will only be 21 million Bitcoins created or should we say mined. The trust, usefulness, and demand people have for it.
If people trust it, and can use it, then they may want it, and therefore it will have value established on the open market by how much someone is willing to pay for it. So the value is a pure reflection of demand. I have even heard rumors that Facebook and Amazon may be getting ready to accept Litecoin. First you have to select the crypto that you want to own, for there are many of them. Here is a link to a list of all the Cryptos ranked by their respective market capitalization. One of my favorites is Litecoin. Once you have selected the Crypto that you would like to buy, you then need to obtain a digital wallet to store your Cryptos, which is free—just do a search for that coin wallet and you will see what is available.
After you get your wallet downloaded to your computer then you need to choose an exchange through which you can buy Cryptos. One of the exchanges that I have used is Coinbase. You can also mine for some Cryptos. Mining is the process whereby your computer solves complicated arithmetic problems and upon solving the problem you are awarded coins. Another way to gain Cryptos is to trade them. Cryptos, due to their newness and fluctuations in demand can experience much volatility and huge price swings. This is not necessarily a bad thing if you know when to buy and sell.