Should I Invest in Cryptocurrencies?

My Exclusive Free Workshop The Four P's of Building a Successful Investing Program → https://spxinvesting.mailchimpsites.com
Blog: https://spxinvestingblog.com
Facebook Public Group: https://www.facebook.com/groups/433843641082343
https://blockgeeks.com/guides/what-is-blockchain-technology/Show more

The Creation of Bitcoin
Bitcoin created in 2009.
Other forerunners but bitcoin has had the most “staying power.”
The creator Satoshi Nakamoto. Person or a group.
Bitcoin was created to offer:
Low transaction fees
Decentralization
Access to “unbanked” parts of the world. (About 40% of the world’s population)
Security and convenience
Removal of the middleman
A Brief History of Bitcoin
Aug. 18, 2008: bitcoin.org was registered.
The identity not public information.
White paper called:
"Bitcoin: A Peer-to-Peer Electronic Cash System."
Jan. 3, 2009: Block 0 mined.
"Genesis block.”
Jan. 8, 2009: The Bitcoin software becomes available.
Jan. 9, 2009: Block 1 is mined.
Bitcoin mining starts.
Characteristics of Bitcoin
Bitcoin characteristics include that it is:
Cryptocurrency
Digital
Not issued or backed by any bank or government.
Made secure by using Blockchain, an online public ledger.
Power hungry:
Requires massive computing power for the online public ledger.
Altcoins
Security
Public Key:
An algorithm that generates a number anyone can “see”.
People use this number to send Bitcoins.
Like a bank account or debit card number.
Private Key:
Non-public and secret.
Password, or PIN.
Both are needed.
Miners
Miners maintain the decentralized ledger called Blockchain for credibility and security.
Paid in bitcoins.
Peer-to-peer technology
Miners receive payments at a declining rate.
Miners incentive to work hard and fast.
Mining releases bitcoins into circulation.
How Mining Works
Computers solve very difficult algorithms to discover a new block.
Newly blocks added to the blockchain.
Miners receive bitcoins as rewards, or payment.
In 2009, the block reward was 50 new bitcoins.
This number decreases every four years.
As of May 2020, the reward was halved to 6.25 bitcoins.
Mining becomes more difficult as more and more bitcoins are created.
Number of Bitcoins
21 million.
Subdivided into smaller units called a Satoshi.

Blockchain is the underlying technology.
Public ledger of all cryptocurrency transactions that is:
Digitized
Decentralized
Constantly growing
Chronological order
Each node connected to the network gets a copy of the blockchain, which is downloaded automatically.
Blockchain Simplified
Blockchain is a “digital ledger” stored in a distributed network.
What is a Block?
Recent transactions
Once a block is completed it becomes part of a permanent database.
Then, a new block is generated.
The blocks connect like links in a chain.
Every block contains a hash, or information about, the previous block.
The entire blockchain, or “set of blocks”, has information about users including balances and transactions.
Transactions can't be deleted.
The data can be distributed, not copied.
As the blockchain grows larger and larger, this can create issues of storage and synchronization.
That means each individual piece of data can only have one owner.
How to Acquire Bitcoins
Receiving Payments:
An Alternative to cash, credit cards or debit cards.
Earnings:
Working for a Cryptocurrency company that makes payments in bitcoins.
Interest payments:
Possessed bitcoins can be loaned out. Interest can be charged as a fee that is repaid in bitcoins.
Gambling
Some casinos use bitcoins as currency.
Setting up a Digital Wallet
Information stored in the Blockchain
Information includes:
Records of every transaction ever executed.
Blockchain.info provides access to the entire Bitcoin blockchain.
Bitcoin Risks
Risks include:
Regulatory Risks
Security Risks
Bitcoin transactions are permanent and irreversible
Insurance Risks
Fraud Risks
Market Risks
Obsolescence
Tax Risks
Bitcoin’s Price
In 2017, a Bitcoin rose from about $1,000 in January to a high of just under $19,000 in December of 2017.
Bitcoin has turned into a mania as individuals seek to make lots of “easy” money quickly.
As of July 2021, Bitcoin has fallen to a price of just over $30,000 after climbing to over $63,000 in spring 2021. Price is determined by Supply and Demand.
Price is also dependent on the size of its mining network.
The larger the network is, the more difficult and costly it is to produce new bitcoins.
The price of a bitcoin must rise as the costs of production increase.
Mining power more than tripled in 2017.
Bitcoin Potential
Bitcoin supporters believe that digital currency is the future.
It has the potential of facilitating a much faster, no-fee payment system for worldwide transactions.
The foundation being developed can be used for other industries such as:
Smart Contracts
Copyrights and artistic authentication
Purchases
Vehicle registrations
Weapons registration
Medical records
Voting
The goal is to “remove” the middlemen.