What You Need To Know About Bitcoin And How It Can Help You Become More Financially Independent

Two focuses of my blog are Financial Literacy/Money and Technology. Bitcoin and the other cryptocurrencies are now the talk of the financial world. Some swear that they are the wave of the future, while others are not so convinced. If you’re going to get involved with in this area, there are somethings you should consider. The following contributed post is entitled, What You Need To Know About Bitcoin And How It Can Help You Become More Financially Independent.

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How would you like to be able to stop living paycheck to paycheck? How about not having to worry about the next bill that is due or the money for your child’s college tuition? Bitcoin can help with all of these things. This blog post will discuss what bitcoin is and how it can help you become more financially independent.

Photo by Crypto Crow from Pexels

1) What is Bitcoin?

Bitcoin is a cryptocurrency that was established in 2009 by Satoshi Nakamoto. It can be used to buy things or send money without involving banks, credit card companies, and other third parties like PayPal (which takes fees).

The first thing you need to know about bitcoin is that there are no physical bitcoins. Bitcoins exist only as computer files; the entire currency consists of nothing more than unique numbers protected by digital encryption. You should also note that not all countries recognize bitcoin as legal tender. For example, it’s banned in Iceland because the government says its value has been too unstable for them to put trust in it! But people use it there anyway since they don’t have any rules against using cryptocurrencies at this time. Secondly, bitcoins are created through a process called “mining.” Miners use powerful computers to solve complex mathematical problems in order to verify and record bitcoin transactions into the blockchain (a digital ledger).

Bitcoins aren’t that different from regular currency when you think about it. Fiat money is also intangible and created through a central authority. The difference is that bitcoins have been explicitly designed for secure financial transactions. For example, each transaction is verified by miners who compete to solve these complex math problems; this creates an added layer of security against fraud or counterfeiting. In addition, bitcoins aren’t subject to inflation like regular currency since there will only ever be 21 million bitcoins mined. This makes them attractive as an investment option! Consider visiting Cyber Hornet for more information.

2) How It Can Help Your Finances

Bitcoin is decentralized, meaning a single organization or government does not control it. Decentralization means that bitcoin can help you become more financially independent since the fees are lower with this type of currency than when using credit cards and other forms.

You will also be able to send money anywhere in the world at any time without paying unreasonable wire transfer rates. This way, you have access 24 hours per day, seven days per week! You won’t need to wait for banks to open on weekends either, so transactions complete quickly.

And if your wallet gets stolen? Some countries even offer insurance against theft which makes getting into bitcoin incredibly easy! Combined, these things make it easier to become financially independent with crypto-currencies like Bitcoin.

In conclusion, Bitcoin is a digital currency that has been designed for secure financial transactions. It’s decentralized, meaning any one organization or government doesn’t control it, making it attractive to people who want to become more financially independent. Bitcoin can help you send money anywhere in the world at any time without paying unreasonable wire transfer rates!

Why It’s Time For Your Business To Start Accepting Bitcoin

Three focuses of my blog are Financial Literacy/Money, Business/Entrepreneurship and Technology. Talk of Bitcoin emerged earlier this century, but only recently have discussions emerged about using it in actual business transactions. The following contributed post is entitled, Why It’s Time For Your Business To Start Accepting Bitcoin.

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You’ve been putting it off for years, but now the time has finally come when your business needs to start accepting bitcoin. The earlier you can get on the bandwagon, the more of the wave you can ride in the future.

Bitcoin isn’t just a cryptocurrency for speculators. It is also a tool that businesses can use to make their brands more compelling. Many entrepreneurs are choosing to host a bitcoin ATM so that customers can convert their cash into digital tokens. But why?

Lower Transaction Fees

The primary reason for using bitcoin for businesses is the lower transaction fees. Traditional banks and credit clearing companies charge merchants a small fortune for banking services. Every transaction implies an additional fee which eats into profits and competitiveness.

However, fees for bitcoin transactions are orders of magnitude lower. With crypto, there is no middleman shuffling money from one account to another. Instead, it’s all done independently via the crypto network. The result is almost costless transactions, even if you’re accepting payments from other banks or overseas.

Faster Processing

The traditional banking system doesn’t always debit or credit your account immediately. Sometimes, it can take a couple of days for payments to clear – not good if your cash flow is tight.

But that’s not true of bitcoin. Processing is essentially instant, which means that the moment you render a service, you receive the reward. You can then use bitcoin to purchase the other inputs that you need.

Higher Security

Then there is the security issue. Bitcoin offers people higher security than traditional banking, even though no banks are involved. Customers, for instance, want to be able to pay in coins personally linked to their identity. They can’t do that when they use regular payment methods, but they can do it with crypto.

Many customers buying overseas from you prefer to use crypto because, in some cases, they can specify the terms under which you receive the payment. For example, you only get the money if you deliver the goods.

This might sound like a bad thing, but it’s actually the opposite. It encourages more people to buy from you and increases the size of your market.

Access To The International Market

Speaking of which, bitcoin actually gives you instant access to the international market without first having to go via the international banking system. The currency is the same all over the world, and is usable for anyone with an internet connection. This means that there are no exchange fees, and no issues working out what your prices should be in other currencies – which is always a hassle.

Having said all this, you’ll need to accept that there are some risks that come with bitcoin transactions. For example, you’ll need to educate your customers that they can use the digital currency to buy your products and services. You’ll also need to regularly convert out of bitcoin into cash and adjust your prices, based on the going bitcoin rate, since it tends to fluctuate considerably from week to week.

Why Is It So Easy To Make Mistakes When Investing In Bitcoin?

Two key focuses of my blog are Financial Literacy/Money and Technology. An important part of understanding money is investing. Many investors now have their sites on Bitcoin and other cryptocurrencies as lucrative investments to get into. The following contributed post is entitled, Why Is It So Easy To Make Mistakes When Investing In Bitcoin?

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Making money is challenging. If it was easy, everyone would be rich. The key is to search for value, and to be decisive when you find it. Otherwise, the opportunity will slip from your fingers. With Bitcoin, investors feel as if they have the value they have been looking for their entire lives. After all, the price value is currently at record highs.

However, it’s easy to make mistakes with cryptocurrencies, and errors lead to losses. Why are mistakes so common? It’s because investors fail to research the entire fund before channelling their money into trades. When it comes to crypto, the smallest detail can have the biggest impacts.

The ecological element of Bitcoin is a prime example. Most people don’t understand how damaging the process is, and how mining for Bitcoin can lead to energy wastage that’s akin to the usage of nations. A single dollar of Bitcoin is equal to 17 megajoules of energy, which is an incredible amount.

Unfortunately, investors don’t recognise the links between Bitcoin’s carbon footprint and the effects it has on their chances of success. For instance, as mining for coins gets tougher, the need for specialist equipment is vital if you’re going to find enough currency to make it worth your while. And, expert tools don’t come cheap.

Thankfully, you can learn more about the ecological effects of cryptocurrencies via the infographic below. By doing that, you’ll be more aware of the potential drawbacks of investment opportunities, meaning you should take fewer risks and make fewer errors.


Designed by Arbtech ecological consultants

What Can You Buy With Bitcoin?

A key focus of my blog is Financial Literacy/Money. Cryptocurrencies are now a force to be reckoned with in the financial world and have the attention of both world governments and citizens. Bitcoin started off as a speculative investment for building wealth, but can it be used in business transactions? The following contributed post is entitled, What Can You Buy With Bitcoin?

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There is still a weird assumption around bitcoin. It’s because you can’t physically touch it, the people still think they are worthless, and that no one buys them. But we should all remember when bitcoin was very first available, many many retailers jumped on the bandwagon and accepted them. Since then there has been a decline, but that doesn’t mean that you can’t spend your bitcoins, mining, and use them elsewhere.

Photo by Dmitry Demidko on Unsplash

Bitcoins and Blockchain can be used in so many different industries, for example, blockchain is helping supply chains-and if that sounds like something you’re interested in you should follow the link to find out more. And if you want to get a deeper feel for how blockchain and bitcoin work then check here.

So if you are considering buying bitcoin, or working out where you can spend yours-that this is a great list of songs in places.

Real Estate

In general, the goods that you can buy with bitcoin might be considered quite luxurious. This also means that you are telling your bitcoins into long-term investments. The standard housing market is not the place where you would look to spend your bitcoin though. You’ll actually be looking at luxury real estate. In fact, there is a company called the bitcoin realist date, which allows you to buy and sell the property directly in bitcoins. It also has a huge range of worldwide features that can be purchased, so you won’t be looking only local.

Travel

There are still many places that will accept bitcoin as payment for booking flights, hotels, and so much more. You can check at BTCT trip for somewhere that is exclusively designed to take payments in bitcoin. Of course, there are others available, and well done you said you might notice Expedia has bitcoin terms and conditions on the website. However, they stopped accepting bitcoin payments in June 2018. Here are a few alternatives:

● Travel for coins
● Cheapair
● Virgin Galactic-if you feel like going into space
● ABITSKY
● Future.travel
● Gold and silver

If you feel like turning your bitcoins into real money and investing it well, then purchasing gold and silver is the ideal thing for you. There are plenty of companies that will accept bitcoin as a payment option. It is also worth noting that some companies can offer their own native bitcoins too. Ampex is one of the companies that will be happy to trade goals for bitcoins or bitcoin cash. You will have to make sure that your bitcoin wallet is compatible with their payment system though. In most cases, any of these transactions will take 15 minutes or less. The reason it will be so quick is because of the fluctuation of bitcoin price. And there might be a price limit on what you can spend. Bitcoin can often no longer be accepted as a payment amount once you hit a specific dollar amount.

Gram gold has a particular process in which it can purchase 1 g of investment-grade gold, and receive a smart contract as proof of asset. Which is a very interesting way of acquiring crypto gold.

You could also check at Jm Bullion, this is another great place you can purchase gold, platinum, silver and even Palladium with bitcoin. And you get a nice 4% discount when you pay with bitcoin too.

We should’ve bought Facebook and Bitcoin stock: An investing and technology story

“Over your lifetime, you’ll actually miss more deals than you’ll catch onto.”

Two of the principles of my blog are “Long-Term Thinking/Delayed Gratification”, and the teaching of “Financial Literacy” as money and investing are topics that I ponder and study quite a bit these days.  I wasn’t taught a lot about them as a youth and strive regularly to fill that space in my personal toolbox.  Learning about investing money is actually critical for all employees who are responsible for saving into their own “Defined Contribution” plans.  A third principle of my blog is “Creating Ecosystems of Success” – helping others to be successful.  This particular story involves all three principles and focuses on two investing opportunities from years past – both of which could have drastically changed my life today if I had been in position to take advantage of them.

This post was inspired by two people.  One is a mentor who has literally adopted me and whom I regularly meet with to talk about the content of my blog, economics, current events and everything else under the sun.  Everyone should have a mentor like this.  The second individual is a long-time friend from our hometown of Buffalo, NY.  He worked in the banking industry, and has always had a bit of an entrepreneurial mind.

Instead of diving right into the story, for context I’ll go back to my brief high school basketball career – one of the best times of my life.  One of the things our coaches tried to stress to us was “boxing out” on defense.  That is putting a body on your man once a shot went up from the opposing team.  By committing to boxing out as a team, any team almost certainly could position itself to get the rebound and limit shot opportunities for the opponent no matter their height or leaping ability.  It was a simple and effective technique if used consistently and for our young minds, that was the hard part – doing it consistently.  All it took was being mentally alert, and positioning oneself at the right time.

Okay, let’s talk about Facebook and Bitcoin.  I’ll start with a reading assignment my mentor gave me about three months ago.  One of the topics we discuss regularly is investing money – something he is very experienced at and has taught his kids to do – something I’m playing catch up on.

At the conclusion of one of our mentoring sessions, he gave me a book to read titled “How To Turn $100 Into $1,000,000: Earn, Save and Invest by James McKenna and Jeanine Glista with Matt Fontaine, the creators of Biz Kid$.  When he first handed me the book, I made a comment about it being a, “Children’s book,” to which he quickly snapped back at me, “Do you know everything thing in this children’s book?”  Eager to know more of what he knew, I didn’t take offense, but instead appreciated his coaching.  He tasked me with reading the book prior to our next mentoring session.

As I read through the book, the initial chapters started with basic money lessons youngsters should have – ways to legally earn money such as through doing chores or eventually getting a job, and also planning and goal setting – some lessons many children aren’t taught at an early age.  Later the book delved into investments in a very simple and digestible way – charts, diagrams, pictures and all.  One caption that stood out for me was something on page 106, which told the story of Facebook’s Initial Public Offering (IPO) back in 2012.

“We should all pool our money together and buy Facebook stock,” my friend described earlier said enthusiastically.  It was the holiday season up in our hometown of Buffalo, NY.  He had worked in the banking industry for a while and had knowledge of investment vehicles that myself and my brother, and probably most of his family didn’t have.

We were all at his grandmother’s house where his relatives gathered to fellowship as they did most years.  I watched as he floated around his grandmother’s upper unit telling everyone, “We should pool our money and buy some Facebook stock.  They’re about to have an IPO.”

At that point, Facebook had completely eclipsed Myspace as the number one social media site and most everyone was on it.  While most everyone was using it to reconnect, share the most intimate details of their lives, and other unscrupulous things, its creator Mark Zuckerberg, was cleverly devising ways to monetize his creation through selling advertising space.  It never occurred me, and I would guess the majority of the users, to invest in it.

A mischievous guy at times, I thought this was just another one of my friend’s bright ideas that he was trying to suck us all into.  But was it?  As described in How To Turn $100 Into $1,000,000, Facebook’s initial stock price in 2012 opened at $38 per share.  Shortly thereafter the stock price decreased to $17.55.  When I heard that the stock price went down, I laughed internally at the prospect of all of us “pooling” our money to buy this Facebook stock, and the fact that my friend was lobbying so hard for us to do it.  But that was just the beginning.

Facebook’s stock rebounded over the next five years from that $17.55 per share drop and eventually appreciated to around $100 per share in 2015 when How To Turn $100 Into $1,000,000 was published.  Just before crafting this piece, I checked the business section of the Washington Post for stock prices and to gauge the health of our economy – a regular exercise now.  There I saw that Facebook’s stock is now trading around $170 per share, that’s right $170.  It’s also now considered one of the “Four Horseman” of technology stocks – the other three being Amazon, Apple, and Google.

So let’s put this all in perspective.  What occurred to me when I read that passage in the book was that if I simply had $2,000 lying around and ready to invest in 2012, I could’ve purchased just 100 shares of the Facebook stock for a total value of $1,755 (plus the cost per trade).  Holding onto that stock for another five years, those 100 shares would have appreciated to a total value of $17,550 which could either be cashed out for another purpose, or held for more appreciation.  There would of course be the potential of loss too as with all investments, but Facebook has become a very strong company.  But if you were positioned to get into the game at that point, you would’ve been rewarded later on.

I’ve come to realize that life is all about positioning similar to the way smart basketball players position themselves to get rebounds when a shot goes up, as opposed to simply leaving things to chance.  When I look back to where I was in 2012, I honestly wasn’t in position to safely buy stock of any kind.  I was still lugging around a considerable amount of debt from school, and from mistakes made shortly after starting my federal career – paying too much money for some real estate investing trainings (discussed in another post).  I was recently out of a tumultuous relationship where money was an issue – my not spending enough.

I further had no Emergency Fund (see Dave Ramsey), and I hadn’t started funding my government retirement plan at least up to the point where I would get my 5% matching contribution – something all employees should position themselves to do if employers offer it.  What’s more is that I didn’t understand much about the stock investing game other than you want to “buy low” and “sell high” whether or not you get into an opportunity when it’s first offered, or if you find something of value at a discounted price and chances are it will appreciate – stocks, real estate, whatever.  By the way, to see why it’s critical to have an Emergency Fund and to be prepared for disasters, I recommend reading An In-Depth Guide to Financial Emergency Preparedness by Brian Robson.

But there is so much more to it than buying low and selling high.  There are lessons which take time and commitment to learn – this is part of positioning one’s self.  Furthermore, there are often sacrifices to be made to have money to invest – sacrifices such as not buying a car if public transportation and Uber can be used, taking one’s lunch to work more often times than not, and not “Turning Up” at the club on a regular basis.  As a man, another position might be not having a girlfriend for a while, or at least finding one who isn’t high maintenance.  These are examples of the positioning one must do to be ready to take advantage of the next Facebook if and when it ever comes around.

My friend was right in that it would have been good for us to take advantage of the Facebook IPO.  Coincidentally a couple of years later, he came back to us and told us that we should take advantage of something called “Bitcoin”, a new cyber-currency which I thought was another one of his silly ideas.  Years later I would learn that it ran off of something called “Blockchain” technology.  He was very enthused about it, but one of the issues was he couldn’t clearly explain to us what Bitcoin was and why it was important going forward.  This brings up another very key point.  A very important investing rule of thumb is that one should never invest in something they don’t understand.  It turned out though that he was right again.  Two to three years later, Bitcoin seems to be paying off for those who positioned themselves and invested in it when it was dirt cheap.  See the recurring theme here?

This post is not about buying Facebook or Bitcoin today in 2017 per se. Those ships have arguably sailed, and you’d have to have enough money readily available even just to buy 10 shares of Facebook stock today. In terms of getting into these opportunities early when they’re affordable, you have to position yourself, and that’s the central point. Either you’re in a position to take advantage of an opportunity when it’s presented to you, or you’re not. You must be prepared.

This involves knowledge and resources. Study your investment of choice, minimize your debt, save for emergencies, and then allocate your money to invest – money you won’t be adversely affected by the if the investment doesn’t work.

If you’re not in a position to take advantage of a particular opportunity, you can always position yourself for the next one, and the one after that, and then the one after that. It’s all about foresight and positioning. Before starting discretionary/speculative investments, it might also be worthwhile to see a trustworthy financial planner (or someone knowledgeable whom you really trust) who can make sure you’re on sure footing. They may be able to give insight into what type of investments are best for your particular financial goals. Click here if you want to know more about your options.

For the people who were in position to get into Facebook and Bitcoin, it wasn’t magic.  They had the resources and they were probably spending time studying those opportunities so that they were able to strike at the right time.  It all takes some time and effort, and how you spend your time will determine if you’re in position to take advantage of the next Facebook.  In closing, I highly recommend How To Turn $100 Into $1,000,000 to youngsters who have the aptitude for money and finance, and for adults like myself who’ve needed to play catch up.  I’ve personally started sharing copies with those in my inner-circle.

Thank you for taking the time to read this post. If you enjoyed this one, you might also enjoy:

Your net worth, your gross salary, and what they mean
The difference between being cheap and frugal
A look at STEM: Blockchain technology, a new way of conducting business and record keeping
A Cryptocurrency App Case Study
Why SEO really is the key to a successful online business
The Best Apps for Crypto Investment
Who will have the skills to benefit from Apple’s $350 billion investment?

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