What is going on lately?
It is now March 3rd 2021, and we are still in a questionable climate. Despite the previous year being as bad as it was. Predicting the storm settling any time soon would seem redundant. With those concerns come people doing what they can to get by. While others prepare for the future in anyway, they can whether that includes investing in Doge Coin or Bitcoin. This seems to apply to everything across the board these days. Including big businesses considering the fall out of the whole game stop fiasco.
But it got people talking and seemed to even catch eye of big names like Elon Musk who seems to have been a strong advocate for Doge Coin as of late.
The tech giant is not a stranger to the cryptocurrency market and as of late other celebrities seemed to have joined in the fold. While being outspoken about the unreasonable events taking place in this climate. As the population of the US suffer great hardships during the pandemic. As the system in place has been struggling to keep up with the demand required by the people who need it most. Which could have sparked a new energy in investment in things like cryptocurrency.
Which, by definition, is considered the wild, wild west in terms of the money market.
Why is cryptocurrency relevant and why is it a thing at all?
It all began as a currency mined from computers by using things such as graphic cards. Bitcoin could be purchased aside for a very low-price range. With one coin valued at five dollars at one time and now being worth near an estimate of 50k this day. Meaning, if some bought one coin for $5 ten years ago then that very coin would be worth the true estimate of $48, 988 today. So, you can see why people would get invested in such a thing.
What also made it appealing is that crypto is often compared to stock exchanges only it works around the clock 7 days a week.
At one time it could have even overtaken modern currencies based on how popular it had become. With special ATM’s designed for it popping up all around the world. That was until taxes and regulations seemed to have slowed the progression. Which spooked people into reconsidering the idea when the news broke. However, at the time it was announced the details of taxing earnings appeared to be too convoluted to understand. So, it appeared as if many investors would consider waiting till all the details were worked out before getting involved again.
Because the major factor of reporting on the taxes appeared to deal with the recordings of value of exchanging currencies
Meaning, the very value of a currency at the specific time of exchange of both currencies would have to be tracked. At the time it appeared to create disdain for the idea since trading currencies would be done in great quantities. It appeared as if it only applied to those who use wallets and crypto for short term use. Possibly compared to reporting quarterly taxes if one was actively using it for daily purchases. However, it was believed to be overlooked for the long-term use. As more leniency was allowed for people who would choose to report this on a yearly basis as a sort of investment.
This may have possibly changed and been updated in 2021 as software now exist to help track these sorts of things.
But it still stands strong today compared to where it was when it all started. As observers had their speculations of its legitimacy. Which is to be expected when being used to a world driven by fiat currency. Still, in that very world not many people would get involved, let alone try to understand the regular stock exchange. So, of course crypto trading would appear intimidating to anyone who was not willing to learn the complexities. As fiat is known for being backed by a form of value like precious metals and crypto is a currency meant to cap out at some point in time.
Cap out meaning that the value would hit a threshold and stop. Which is a time period that is a mystery to everyone and creates plenty of compelling prediction analysis online.
The appeal here for this digital currency seems to be based on a freer market. However, as interesting as that may seem. There are some significant draw backs to investing in this. The first being that none of this is insured the way the fiat system is. So, if by any chance someone loses their earnings due to something like hacking. Then they lose that money for good with no way of getting it back unless you hire some specialist who can track that sort of thing (not sure if that option exists).
The most known secure form of protection from that sort of thing is having a physical password protected digital wallet. Basically, a glorified flash drive that allows people to store their earnings like a bank account only an offline version that wouldn’t be connected directly to the internet. Anyone can get one of these one amazon or another service provider online. The biggest risk from having one of these is protecting a physical item that could end up being of great value and forgetting the password. As the most recent story of some one who does this had them nearly be locked out of the device due to wrong password input. Since this specific wallet would lock up after ten wrong entries and erase the entire value of the cryptocurrency inside (This was mind you, after learning the worthless crypto in this wallet suddenly became worth thousands).
Fortunately, this person managed to find the password after having only two entries left. (Stress)
The second thing to consider is that there are big investors who are called whales. Ballers who have the power to pull out of any involvement at their discretion. Which can devalue the currency unless another whale gets involved again. Decisions probably based on the knack to pay attention to the digital currency market to know when to get in and get out. This is the sort of thing that causes some versions of cryptocurrency to grow and then suddenly drop in price. And much like dealing with stocks, the options are to buy low, sell high, trade or hold.
This can be seen a lot with doge coin as it has taken off as one of the most popular currencies online.
After Elon Musk had placed some interest in it recently and seemingly invested himself. While encouraging other “Whales” to get in on it. The prediction would be that it could overtake bitcoin in value as it did make its way up the top ten list. As if there was a movement for crypto enthusiasts to focus primarily on this specific coin. With Elon mentioning that it could be valuable enough to be used in stores. Which was bizarre since doge coins original intent was to be nothing more than a parody of the whole crypto system.
But based on real time analysis the value would only sporadically continue to rise and fall.
Which is the kind of risk one takes when being involved in a market like this. Because the initial prediction of this coin’s value was for it to become the new bitcoin. However, it hasn’t seemed to have made that mark yet. Even with big investors like Elon and who ever he may have convinced to get involved. As interest was most high on the day of the super bowl of 2021. It was believed if an ad could be squeezed into this event that it would even further increase doge coins value.
However, the failure to capitalize on this meant people began to shy away from the idea.
Many of them hoping to make change with their earnings and place a stamp on the idea that doge coin is here to be a player.
What’s the end game here and should the everyday person start tuning into this?
Technically, there is no one right answer for this when you think about it. Since it appears the whole landscape of things seem to be up in the air. However, reports came out that big corps are making their way into this business model. Only they are using specific cryptocurrencies to do it. So, that is clearly something to take notice of as the more markets sway in different directions the higher the risks of devaluing currencies come into play. And in this climate the place for opportunists is at an all-time high.
The answer here for the everyday person taking notice is, yes!
It is vital at this point to at least learn about what this market is all about. To keep a thumb on the pulse of where the world may be taking us and not be caught off guard.
Besides, with the extra time people have these days. It wouldn’t be as hard to learn something new, especially with how vast the information on this is online. Here are a few ways people get involved in cryptocurrency below.
· Buying and selling from apps or sites that allow cryptocurrency.
· Crypto Mining from the computer (Which requires energy costs and a pricey graphics card)
· Crypto Mining from the browser (A special browser that can left on the computer or phone)
· Faucets (Even though these can be very risky)
· Playing game apps (For a little extra cause why not)
· Using apps that reward content creators with crypto.
· Using crypto dot com to invest and collect interest.
· Trading crypto based on the value of the market like stock exchange
· Buying up worthless crypto and storing it in digital wallet in case value increases
Bitcoin is still currently the leader in the top ten choices when it comes to this market. As the originator of it all but you’d be surprised to know that no one really knows who created this. Even in a world where secrecy is a footnote to information. Somehow, all these years later crypto becomes as popular as it is, and the only information people have on the original source is a hunch. The persons name being Satoshi Nakamoto whose involvement is based on pure speculation.
Let’s just hope it isn’t someone watching the world change from a high rise while stroking a cat and asking for lasers on a shark’s head.
Written by Antonio Westley
Disclaimer: Be advised that I am not a financial advisor, nor do I participate in crypto earning or exchange of any sorts. So, feel free to use any information in this post at your own sole discretion and make sure to do your own research. Affiliate links can also be found in this post in relation to the provided reading content.