Sep 12, 2021 08:04

Caging the Doge

It’s no secret how powerful and engaging the dogecoin trend has been. People who have held $DOGE since even the beginning of January are now retiring, paying off mortgages and more through the incredible wealth transfer that comes with cryptocurrency.

But what can we expect from $DOGE moving forward? Is now the time to buy and hold “to the moon”? Can $DOGE truly become the “money of the people” as many of the initiated believe?

This article will be wildly unpopular in the degen crypto-community I am sure. I fully expect to be raked over the coals for this, be called a “FUDer” (fear, uncertainty and doubt) and new retail money doesn’t want to hear what I am about to write because they probably just invested in this crypto with their new robinhood account;

$DOGE is a bad investment. Stay away from it.

Here are three reasons why:

1. Market Cap. $DOGE is now a top 10 cryptocurrency. It’s current M-cap as of this writing is ~50 billion dollars. This means 50 billion dollars have flooded into this useless coin. Top cryptocurrencies by market cap require intensive amounts of monetary energy to continue to move upward. Think of it this way; small (or “micro”) cryptocurrencies have market caps of ~1 million or less. The monetary energy required to double the price of these coins is 1 million dollars, compared to 50 billion dollars with $DOGE. The price of any crypto is a simple math equation: the market cap divided by the circulating supply. If you are looking for quick gains, there are literally thousands of other cryptocurrencies that give you a better shot at this point. $TNDR for example, is a cryptocurrency with a 1 million dollar market cap and deflationary mechanisms built in, which will result in higher prices. For $DOGE, the boat has sailed on people turning a thousand dollars into hundreds of thousands.

2. Lack of Utility. $DOGE is pointless. It was started as a meme. For some reason, the doge-army believes that this obvious pointlessness makes it the underdog favorite to overcome the massive obstacles it will have for actual adoption. While it is possible the utility of this token can change, anyone who claims it is usable is just shilling the coin to you. As of the time of this writing, for most “big money” players, it is not an investable asset simply due to its lack of utility in the market. It is not a good store of value because of its inflationary nature (10,000 DOGE are minted every minute). Bitcoin is better for that. It is not a good currency for transaction because it is highly volatile (yes, even and especially compared to other cryptocurrencies) and therefore risks you losing your purchasing power. Stablecoins and other utility tokens provide better options. Serious investors and financial giants that are needed to keep moving the price up won’t be attracted to an asset that has no utility and an inflationary supply over time. I am concerned that the majority of retail traders and investors who are new to crypto will be left holding the bags in what is the cryptocurrency version of a ponzi scheme, with all the big players selling their stacks to newcomers while they move into other useful coins. If you want a crypto with utility, just stack Ethereuem.

3. Inflation on Steroids. 10 million $DOGE are created every day. This means that over a billion dollars worth of $DOGE are made each quarter. That is 2% of the total market cap. In USD terms, the kind of new money that has to enter into $DOGE just to keep the price stable is nearly 8% of its current market cap. An 8% growth rate of new money action is unlikely, especially considering the vast amount of other cryptocurrencies out there and considering the lack of interest from major investors and financial institutions. This inflationary nature makes the momentum needed even to get DOGE to a dollar an astronomical accomplishment. Don’t get me wrong, it is quite possible (and dare I say likely) that $DOGE makes its way to a dollar, giving the old phrase “$DOGE to a 1” fresh relevance. But it is unlikely that $DOGE can sustain this energy for long.

I am truly glad for those who have made great gains with DOGE. But personally, when the hype is over, I am excited to see how the money flows out of $DOGE into the rest of crypto. A rising tide raises all boats. My personal approach is to keep building my positions in other cryptocurrencies, waiting for the liquidity to exit $DOGE and pump coins with low market caps, actual utility and deflationary elements.

In sum, buy DOGE for the meme, not for the money.

Sep 12, 2021 08:04

Can Bitcoin Save Political Conservatives?

As the US Capitol fell into riots and chaos, which mainstream media outlets have labeled an insurrection, the consequences following January 6th have been swift and heavy. The US president, Donald J. Trump had his twitter account deactivated, following which several prominent conservative voices claim to have been silenced, and a new social media darling of the right has been cut off at the source, with Amazon removing the app from its cloud servers and Apple removing the app itself from their platform.Violence and rage are never the answer, and only exacerbate the issues in our country, however most conservatives appear to be peace-loving patriots who swiftly condemned the actions of January 6th and are now left reeling with what appears to them as a major infringement on their free speech. 

As an avowed capitalist and social conservative, I saw the responses of “big tech” as not strictly problematic; a company, no matter how big or small, has the right to determine who it will be in business with or allow to use its platform, and we all have a choice whether to use their platforms or not. At the very same time, Facebook, Twitter, and the Iphone have become ubiquitous with information-sharing and for all practical purposes are a public utility that not many other platforms are able to be, and (in my opinion) therefore should probably be judged by a different set of standards than any other kind of company. In short; it’s complicated.

While conservatives across the country rallied to the inevitable conclusion that “big tech” is out to silence their voices and that anyone who cares about free speech should care about this issue, plans have been made to walk away from twitter, facebook, etc...but where will they go? 

The solution, according to conservatives, is found in political action or wrestling with the powers that be; but what if instead the answer was found in the rapidly advancing tech known as blockchain? 

Can cryptocurrency provide salvation for the millions of conservatives who feel disenfranchised by these recent events? I believe the answer is a clear and resounding yes. 

The Problem

The biggest issues conservatives have in the aftermath of January 6th was the decision by Jack Dorsey to ban Donald Trump. Conservatives claim this displays 1) the control and power in the hands of a single company combined with 2) the inconsistency they see in their application of this company’s policies. Conservatives see this as a clear bias against conservative voices, and (in their view) a clear abuse of power by Twitter to regulate the speech of a sitting US President and subsequently their own voices.

As Amazon made its decision to pull the conservative favorite “Parler” off its servers, conservatives again cried foul, as Amazon owns nearly half of the world’s public cloud infrastructure leaving the app without a home. When the ability to engage in the public, do business and surf the web or build mobile apps are completely controlled by the hands of a few tech giants, conservatives fear they are headed for extinction.

Vitalik Buterin, creator of Ethereum, has noted the problems of the centralized and the lack of consistency Twitter has shown in its decision. To summarize, the problems appear to be the centralization of power in the hands of a few and perceived bias in application. 

The Real Solution

While trumpers and right-wing enthusiasts may be convinced that there is simply no democratic solution to the problem of censorship without “their guy” in the white house, a real tangible solution exists outside of the political sphere with Bitcoin and cryptocurrency. Let me explain: 

The Decentralized Antidote

Cryptocurrency projects on public blockchains are able to achieve what most regulated tech companies will never be able to: censorship-free and censorship resistant modes of working. 

The nature of blockchain is to be public and decentralized, meaning no government or agency is able to control or restrict its activity. It’s perhaps for this reason that Bitcoin has been falsely labeled as a criminal friendly enterprise despite the extremely low amount of criminal traffic happening (more criminal activity is conducted with cold hard cash than anything else). Of course, any truly democratic tech can be manipulated or taken advantage of by bad actors, but this is no less true of any other asset, digital or physical. 

But this decentralized nature of Bitcoin means that it is perhaps the truest democratic enterprise that exists; it is controlled by the people. 

Blockchain projects like Ethereum provide app developers a decentralized platform to run a number of blockchain inspired projects that remain resistant to hackers, and, through their consensus protocols, keep the blockchain increasingly open source. 

There are a number of cryptocurrency projects that have attempted to start the “web 3.0” world, applying the tech behind Bitcoin to solve the internet’s most glaring issues: privacy, security, and freedom. 

Projects like Blockstack (STX), Filecoin (FIL), The Graph (GRT), among a host of others are paving the way, building the necessary infrastructure (cloud data storage, domain name services, etc) to allow for internet activity to be truly democratic and decentralized. 

While the world may be years away from this decentralized vision, social conservatives should care deeply about this development. If they truly desire a free, unregulated medium to share and receive information (like the internet), what we need are not new “conservative friendly apps” but an entirely new way of interacting with the web that is resistant to tyranny. 

Eliminating Bias

By employing “smart contracts” that are directly written into the blockchain code, cryptocurrency projects are able to achieve outcomes based on a set of strict rules, eliminating the need for trust between two parties to execute a contract. This “trustless” system can easily be adapted for regulating policies in a fair way, using smart contracts to deploy rules and governance for any blockchain without the need of a human agent on the other side. 

By using these smart contracts, no company can be guilty of censorship or manipulation: the nature of smart contracts literally prevents them from being able to interfere with the deployment of these rules, the code is simply operating as it was programmed. And what’s more, the terms of the contract are generally clear and publicly available, meaning no arbitrary or otherwise disputable interactions can happen.

Luckily, some (or most) of these blockchain projects (like The Graph and Filecoin) are available on major US exchanges like Coinbase or Kraken for conservatives to support. US citizens interested in Blockstack will have to wait for this crypto to be available for US users. Readers who want to learn more can sign up for reputable exchanges can do so by going here for Coinbase and here for Kraken. These two exchanges are notable for their desire to comply with currency US regulations, despite there being a current lack of clarity surrounding the cryptocurrency space. By signing up at the links above, you are actually supporting this site and the content creators behind it.

Sep 12, 2021 08:04

What is Ethereum? How is it different than Bitcoin?

There will always be a lot of hype around Bitcoin. In fact, Bitcoin is the cryptocurrency household name. Even our site has used Bitcoin and its name brand in order to be more recognizable to new users.

But what about all the other coins that are out there? How do they relate to Bitcoin?

What makes them different? What makes them the same? Aren't they all just digital forms of money?

Well, not all of them. There's one coin in particular that has stood out above all the other altcoins (or alternative coins). And that is the coin Ethereum (Its ticker is ETH). Ethereum boasts of the largest market cap of any altcoin in the markets (for right now). And that's for good reason. Many people argue that Ethereum should not even be considered an “altcoin” because it's in a class of its own.

So, what is Ethereum?

Ethereum is a blockchain protocol, just like Bitcoin or any other cryptocurrency out there. But one way that it is set apart is through the use of what's called a “smart contract” that is employed on the blockchain. A “smart contract” is simple in its concept, but actually, it's a revolutionary idea when it comes to technology. A “smart contract” essentially is an automated contract that is executed whenever the terms of that contract have been met. The use case for the financial sector is pretty obvious. I send funds to an escrow account, for example, perhaps for a home loan, and whenever those funds are received on the blockchain, it triggers an automatic deposit into your account for the purchase of the home. These kinds of things are very easy to do, and have traditional been done in the traditional financial sector by title companies, central banks, etc.

What makes Ethereum unique is that not only does it employ “smart contracts”, but it comes with a developer language called “Solidity” that was developed in part by Gavin Wood, one of the initial founders of Ethereum. This programming language allows blockchain developers to actually build “decentralized applications” (or Dapps) on top of the Ethereum blockchain.

TLDR: basically means is that somebody who's a blockchain developer can use the Ethereum blockchain, use the Solidity developer language, and the sky is the limit as far as their creativity goes in what they can create.

They could use a smart contract to track supply chain management, for example. Or they can also employ smart contracts for things such as real estate, and for any legal contract that is out there. They can revolutionize any industry with a few lines of code.

There are so many ways that smart contracts can be employed. It really does end up being about how creative a developer is and how technically savvy they are with writing in the programming language.

Vitalik Buterin was one of the founders of the Ethereum blockchain and it's probably the most recognized name when it comes to ETH.

It's notable that Vitalik is incredibly young. He's only 24 and has built one of the most sophisticated and technologically advanced blockchain protocols in the world. There's simply nothing like it right now.

Essentially, in order to process these smart contracts, people pay fees in what's called a “gas fee”. This gas fee goes to a network of miners who use their computers in order to validate the Ethereum network.

Anybody can mine as long as they are able to properly set up their equipment and join a validator network.

A notable issue in recent months has been the Problems of scalability with the Ethereum blockchain. Because so many different cryptocurrencies and Dapps are being built on top of the Ethereum blockchain, ETH is being dragged down by network congestion. It's also having issues with scalability because the number of cryptocurrencies and smart contracts and Dapps that are utilizing the Ethereum blockchain have increased the amount of information being processed on the network. This in turn has led to exorbitant gas fees, making it sometimes unusable for small traders with limited funds.

You can perhaps imagine it like this: more and more cars getting on a highway, increasing traffic and slowing everyone down. All the cars idling on the highway as the congestion continues, are going to spend more and more gas as going slower in your car is less efficient and it takes more and more time.

There are a few “competitors” out there trying to solve these scalability and price issues on the Ethereum ecosystem, such as Polkadot, Cardano, and others, all of which have been dubbed “Ethereum killers” by some people in the crypto community.

The jury is still out whether they will accomplish this goal. We personally believe that there's enough room in the cryptocurrency pool for everyone to enjoy and splash around. And so much has been developed on Ethereum already, this kind of change to other blockchains would likely happen over the course of years, not months. Moreover, the Ethereum developers recently just put out version “2.0” of Ethereum, which will allow users to stake their Ethereum tokens, which will hopefully be a more economic and ecologically friendly way of validating the network. And their hope is that version 2.0 will solve some of the scalability issues as well as they introduce various updates to the protocol.

There's a craze in the cryptocurrency world right now called decentralized finance, and most of the decentralized finance protocols are being built on the Ethereum blockchain. Because of this popular trend, the Ethereum blockchain is continuing to receive tons of use, even despite the scalability problems.

When one considers the markets, Ethereum is the second in market capitalization only sitting under Bitcoin. What that means is that people that are looking to trade and invest in something that is going to be around for a while, may have their sights set on Ethereum. While institutional investors are piling into Bitcoin, many people are speculating that Ethereum is the next asset they will go after, as it has already passed the SEC's “permission to play” because it is not being recognized as a security.

We love Ethereum as much as we love Bitcoin. In fact, we are holding ETH for the long term in one of our interest bearing accounts. If you want to find out more, you can check out the Ethereum foundation at the link below.

Sep 12, 2021 08:04

Volatility: Is This the End of Bitcoin?

As the price of Bitcoin starts to drop, many people are wondering if this is the end of Bitcoin as we know it. Fortunately, this isn't the first time this kind of noise has made it into the mainstream. The notorious critics of cryptocurrency and Bitcoin long for the day for Bitcoin to go down lower because they want to be able to say "I told you so."

This type of negativity is expected and can cause a lot of fear, uncertainty, and doubt.

Bitcoin was able to reach $42,000 this year, and as it begins to plummet down toward 30,000 (or worse) a lot of people are wondering if this crazy bull run for Bitcoin is over.

One thing that's clear about cryptocurrency markets is that they are anything but stable.

Crypto-markets are full of volatility, and it's not uncommon to see corrections and retracements of 40, 50, even 60% in some cases.

Veterans that have been around cycle after cycle investing in Bitcoin know these things. And they're not surprised when they see Bitcoin go down in price on the markets. People that are seasoned with Bitcoin and cryptocurrency also know the power behind holding onto Bitcoin and blocking out the noise. Most people that are investing in Bitcoin are not doing so because they believe it's a quick get rich quick scheme. (Well, at least the majority of people aren't.)

Bitcoin enthusiasts see this as the future of finance. They see cryptocurrencies and blockchain as the future of the world. They believe themselves to be the early adopters of a technological and financial revolution that is happening right under our nose.

Even should the price of Bitcoin continue to drop in the weeks to come, Bitcoin holders worldwide are not betting on the market for tomorrow, they're betting on the market over the next decade.

It's important to know if you're new to cryptocurrency, this kind of volatility is normal and expected. The last thing that you want to do is buy your Bitcoin at the top of the market and sell it at the bottom of the market.

Buying in a sort of frenzy and euphoria, when the market is filled with greed, people are entering in because they see the prices rising, and they want to get in before it's too late. And then when prices drop, newbies are selling at the bottom (they are said to have “weak hands”.) Weak hands see the price go lower and they get fearful that the price of Bitcoin will drop to zero, and they will sell all their Bitcoin.

Smart traders are doing the very opposite thing. They are selling Bitcoin when it gets to the top of the cycle (ironically to those people that are buying because of greed and euphoria.) And when the price of Bitcoin drops to the bottom, they are buying that Bitcoin that weak hands are willing to sell.

So, if you're new to cryptocurrency, and should you be making the decision to enter cryptocurrency exchanges, this is more or less a PSA to expect a bumpy ride. Any new and emerging technology and asset class is sure to have ups and downs. Make sure that you are engaging with cryptocurrency for the right reasons and not being subject to your emotions.

Sep 12, 2021 08:04

New to Bitcoin? 3 Must-See Resources for Beginners.

We all start somewhere. Maybe you are seeing Bitcoin break it’s all time highs approaching 40,000 USD. Perhaps you own some Bitcoin or Ethereum but find that you don’t really know much about the tech.

Obviously, subscribing to this site will help you as you begin to understand this space, but if you are looking for some resources to help you “level up” your knowledge and understanding of Bitcoin, here are Beginner Bitcoin’s top 3 must see resources for January 2021. Here’s to helping you uncover more of the joys of the cryptoverse!

Beginner Level: Banking on Bitcoin. This Netflix film may be the most popular documentary on the subject, perhaps precisely because it is on Netflix, and anyone with an account can watch it. (Also available on amazon)

Intermediate Level: Blockchain Revolution by Don & Alex Tapscott. This is a good book to put on audio as you drive to work. Don and Alex break down the fundamental technology behind bitcoin in a way that helps you see truly how revolutionary it is. The writing is a bit technical, so we suggest you check out our blockchain basics before you begin.

Advanced: Satoshi’s Bitcoin Paper. Not much is known about the mysterious creator of Bitcoin, Satoshi Nakamoto. His nine page abstract however is an original document that explains the technical side of what the Bitcoin vision is. For anyone new to Crypto, you need to at the very least see this document.

Sep 12, 2021 08:04

Exchange Matters: What is Coinbase?

As new people engage in buying and selling Bitcoin, Ethereum and other digital assets, they find themselves entering into the world of exchanges.

What is an exchange?

Exchanges are simple: a marketplace for people to engage in trading behavior, whether they're buying or selling or trying their cryptocurrency. There are a lot of different exchanges. Among all the centralized exchanges that exist, there are a handful of them that are popular in the United States. One of the most successful and most popular in the US is the Coinbase exchange.

It's obviously not the only exchange that people can buy and trade and sell cryptocurrency, but it is probably the most popular one because its app is very user friendly, they have a great marketing team, and they boast of some of the top leadership in the cryptocurrency space in the US.

For example, Brian Brooks, was the acting director of the Office of the Comptroller of the Currency until just very recently. Because of these reasons, Coinbase is an exchange that is a little more reputable, and therefore, it feels at least a little bit safer for citizens of the US to engage in cryptocurrency.

Here's a few things about Coinbase that make it a good exchange to begin with:

1) It is user friendly, meaning that it has an app and a website that is simple to use with a very intuitive design. I mean, I recently helped my mom get on Coinbase (if you knew my mom and her lack of technological acumen, you would understand how big a deal that is.)

They go out of their way to make it easy for beginners to get involved in buying and selling cryptocurrency.

2) Coinbase Earn. This exchange has an earn program, which we explain in our free E-course or in our E-book on Amazon, how you can use that program to actually make cryptocurrency for free. This is something that we love about Coinbase-they're going above and beyond to introduce beginners to the world of cryptocurrency by creating educational content, that's going to help people that are new to the space, understand what they're getting into. And maybe they are not the most in-depth videos or articles, but they're at least a good start for people who are entering into this world.

3) Compliance. Coinbase is going above and beyond in order to comply with regulation, whether that's submitting to KYC regulations or whether they're trying to only list coins and assets that are reputable, they do not want to come under suspicion by the SEC. This is really good news for cryptocurrency in general. But we like that they're going further with regulation and lawmakers then they really have to because they want to demonstrate themselves to be “above board”. This is not an exchange for criminals or for people to do illicit or illegal behavior.

When XRP or Ripple Labs was recently under fire from the SEC, Coinbase was one of the first exchanges to announce that they were going to delist that cryptocurrency from their exchange. And they did this I think in a show of good faith that they want to be above board, and they want to have staying power when it comes to cryptocurrency exchanges in the United States.

One last exciting thing about Coinbase is that they are going to be having a public offering an IPO in 2021; they've already filed for this. And this is huge news in the cryptocurrency world because this will be one of the first times a major cryptocurrency exchange has filed for a public offering allowing you to buy and trade stocks for this cryptocurrency exchange. That is a big deal. Coinbase has been incredibly profitable and incredibly successful, and they're ready to be listed on stock exchanges with their IPO. If you are a little bit concerned about engaging in cryptocurrency because of its volatility, or maybe you're concerned because digital currencies are not yet backed by the FDIC, you can just simply wait and buy stock in Coinbase if you're wanting to support cryptocurrency space, but you're not about the volatility. But that’s not investment advise. Make your own choices people!

All in all, Coinbase is an incredible exchange. We really love it here at Beginner Bitcoin. For most people who are beginning in cryptocurrency, Coinbase is probably their first stop, because of how easy it is to use.

You simply download the app or you get on a web browser and set up an account. If you're interested to figure out how to set up a Coinbase account, please use THIS LINK.

We will get a referral for referring you to them. And we should mention, Coinbase isn’t asking us to make this review (We don’t even have an affiliate partnership with them as of yet.) We wrote this article because we genuinely like Coinbase.

But please note that we're not financial advisors. This isn't financial advice. If you choose to engage in that kind of behavior, buying and selling and trading, that's your decision. And you should probably talk with a trusted financial advisor before you do it.

Sep 12, 2021 08:04

What is a Stable Coin?

There are thousands of different types of cryptocurrencies out there on the market today, from Bitcoin to Ethereum, to the various Altcoins (what are called “alternative coins”). In reality, an Altcoin is anything that is not Bitcoin. One particular class of Altcoin that is really important to know about is what's called a “stable coin”. Stable coins are a cryptocurrency class that essentially are relatively stable in their price. This digital dollars are typically pegged to the price action of a specific fiat currency. For example, the US Dollar coin, USDC is pegged to the price of a US Dollar. Some governments are even attempting to create their own, government issued stable coins.

These coins are important for cryptocurrency investors and traders alike as they provide a bit of reprieve from the volatility for investors or traders while trading their Bitcoin or Ethereum for US Dollars. Commonly, traders will use these stable coins to make trades to US Dollars without pulling their money out of the exchange into their traditional Fiat bank account. That may seem like not that big of a deal, however when it comes to trading in the cryptocurrency world, it's very, very helpful for cryptocurrency traders to have US Dollar Stable coins in their arsenal, because when they engage in buying and selling and making purchases and paying their bills here in the real world, they have to use USD (or whatever currency is native to their country).

When they engage on the cryptocurrency market, they're obviously doing that in cryptocurrency, so being able to exchange your cryptocurrency earnings for something that provides a familiar value of your country’s currency is really important.

Recently, the OCC, the Office of the Comptroller of the Currency, announced that traditional banks are now given permission to engage with cryptocurrency specifically with stable coins.

This is really good news because hopefully in the future you will be able to send your USDC (US dollar coin) or your USDT (true USD) or other stable coin assets to your traditional bank, which will speed up the process of transferring money, remittances, and wire transfers. It might even remove the need for wire transfers and ACH bank deposits all together because you can send your stable coin to a secure stable coin wallet hosted by a traditional bank in mere seconds, eliminating the need for these other slower and more expensive forms of remittance.

This is all really good news for the cryptocurrency market. Stable coins are providing an easy entry point for most countries in the world to begin their foray into cryptocurrencies. As much as traders love it, it's not to everyone's best interest for high volatility to keep going in the market. It's certainly not good if you're trying to make everyday purchases and trying to live your life. In general, people like a bit of assurance that their money is worth something that is stable over time.

This becomes good news for investors and really anyone, retail users included, because right now, if you were to put your US Dollars into a savings account, even a high yield savings account, you would likely only earn somewhere around 1.8 to potentially 2% interest. We've written about how this actually doesn't even help you keep up with inflation in another article. So stable coins are allowing people to beat the market, beat inflation simply by holding their US Dollars in stable coins. Digital currencies are not yet FDIC insured so that's one obvious drawback. Just remember, when you hold your money in stable coins, as stable as they are, it is still a risk simply because the federal government is not backing them yet.

Hopefully new legislation and the introduction of stable coins into traditional banking institutions will be a net positive effect on bringing cryptocurrency to all.

What are your thoughts on stable coins? Let us know in the comments or on Facebook.

Sep 12, 2021 08:04

What has Gamestop to do with Cryptocurrency?

Unless you have been under a rock, you have likely seen the fiasco between “r/wallstreetbets”, Gamestop and Robinhood.

A Quick Recap

Over the last week, a subreddit channel called “wallstreet bets” decided to set their aim on a dying company’s stock: Gamestop (GME).

The group apparently coordinated a massive buy of the GME, forcing major institutional investors out of their short positions on the stock price. This is classically called a “short squeeze”. Essentially, this subreddit channel was able to liquidate millions of dollars from the hands of major institutional investors and hedge fund managers.

Robinhood, a popular investing and trading app, came under fire for restricting buy orders for their retail clients with regard to GME and a few other stocks while (and this is important) keeping those order open for larger investors, engaging in what many in the cryptocurrency community are calling market interference. It is not fair for major investors to be privileged over the smaller investors, and moves like this clearly indicate preferential treatment.

Who let the Doge out?

The wall street bets community was quick to move into the cryptocurrency space, coming after Dogecoin, a meme coin that has a over 100 billion coins in supply, and that was started as a joke.

And the antics continue to spill into other cryptocurrencies. At the time of this writing, Ripple (XRP), and Stellar Lumens (XLM) are having dramatic rallies.

How Do These Two Worlds Collide?

Wallstreetbets is obviously on a mission to show the power of democracy. While there is bound to be certain collateral damage from their actions (instability in the market and affecting investment accounts for investors worldwide), at the very least, their recent scheme displayed a glaring hypocrisy in centralized financial sectors; it favors the wealthy.

The reality is that short squeezes happen all the time, but generally the losses stack up in the account of the little guys. Wall street has every incentive to keep the status quo, and it is no surprise that hedge fund managers are furious at what has transpired.

The actions of Robinhood are especially concerning, as restricting access to trading certain assets is a clear move (in my opinion) to prevent a continued rally of these stocks. This amounts to basically a large exchange protecting their wealthy investor’s positions at the expense of smaller investors.

While cryptocurrency exchanges are able to list or delist certain coins (such as what is happening with XRP) the reality is that cryptocurrency cannot only be traded or stored in exchanges. You can store crypto in a wallet, on an exchange, and you can even trade it without the use of a centralized exchange, using DeFi exchanges.

The news about Gamestop and Robinhood only serve to display the benefits of a truly decentralized and democratic form of payment such as Bitcoin, and the need for a change in the financial system. If you are concerned with censorship, privacy, and financial freedom, your best bet lies in crypto.

Sep 12, 2021 08:04

Best kept secret for beginners in cryptocurrency.

There is a lot to learn as you enter the crypto-space. Undoubtedly, new users need to beware of scams, bad advice and more as Bitcoin and other cryptos become more widely accepted globally. The technology driving the industry is always growing, adapting and evolving, an ample environment for misinformation and bad actors to take advantage of newcomers.

Thankfully, some of the major exchanges that operate in the US are taking steps for newbies to wade into the Bitcoin waters with helpful content and beginner friendly apps.

Our eBook helps you get started by taking advantage of some pretty valuable offers from major exchanges, without ever depositing a dime.

With the cost of this eBook, you can easily make your entry into cryptocurrency without investing or trading any money at all by accessing little known promotional offers.

Alternatively, you can read it on Kindle Unlimited for free by CLICKING HERE.

Sep 12, 2021 08:04

What is an “altcoin”?

Bitcoin is in its heyday. Setting all-time highs in 2021, and garnering the attention of major institutions and investors, it is clear that 2021 is prepared to be a giant year for the cryptocurrency behemoth.

But what about all the other “coins” out there? Is Bitcoin the only one?

If you are new to cryptocurrency, it is easy to be overwhelmed by the sheer volume of cryptos out there on the market. What sets them apart from Bitcoin?

These cryptocurrencies are called “altcoins” (literally alternative coins) and named such because they are “alternatives” to Bitcoin. Literally anything that is not Bitcoin can be considered an altcoin.

So what makes these special?

Ethereum, the stand out

Ethereum deserves its own entire article; created by a team of high profile experts in the computing space, Ethereum rose to prominence as the second largest cryptocurrency, sitting directly under Bitcoin. In fact, Ethereum is so large, that many don’t consider it an “altcoin” at all, maintaining that ETH should be touted as its own achievement and deserves special recognition.

And all the rest?

Readers are probably wondering…why all the options? Do we really need thousands of other Bitcoin alternatives?

Well, “alternative” is probably a misnomer. Most cryptocurrencies do not solve the same set of problems as Bitcoin, or if they do, they try to do so in a different way or improve where Bitcoin was weak.

Bitcoin is touted as a digital store of value. In that regard, it is like gold, and stands far above its competitors. But altcoins utilize blockchain technology in a similar way in order to achieve other ends.

For example, Polkadot, a cryptocurrency we are quite fond of, aims to accomplish something called “interoperability” between blockchains. The problem they attempt to solve is that different blockchain projects can’t interact with each other. DOT is attempting to become an internet of blockchains, more or less, allowing the different blockchains to communicate with one another.

Other altcoins, such as “stable coins” like USDC, are attempting to provide a cryptocurrency that is pegged to the price of US dollars, in an effort to bridge blockchain and digital spending without the high volatility that is often found in the cryptocurrency space.

So…are they worth anything?

Most of the altcoins out there (not all) provide some kind of utility. They utilize cryptography and blockchain to solve real world problems.

Their worth in many cases is directly tied to their ability to accomplish those goals; this is why it is important to understand the tech and their team in order to assess whether you think this is possible.

Most of these projects are governed in a decentralized way by issuing their tokens in the form of a cryptocurrency. This allows holders of this token to be a part of governing and helping the project move forward.

For example, many coins allow you to “stake” your coins. By putting your holdings up for stake, you generate a reward of earning more of that coin. The staking actually secures the network, and thus you are incentivized financially to help the project succeed.

The Biggest Upside

Altcoins are known for their ability to rise and fall quickly in their prices. For that reason, traders absolutely love them. It is not uncommon for people to 10x their portfolio simply by picking and holding the right altcoins.

Altcoins enjoy both good and bad reputation for the above reasons. Some love them, some hate them. But if you are beginning in Bitcoin and cryptocurrency, you at least need to know about them.

Just be careful, there are literally thousands of altcoins out there, and it’s hard to know which are scams. The most reputable coins are listed on platforms like Coinbase or Kraken, both of which are known as safe exchanges to buy and sell selected altcoins.