Cryptocurrency: the future of money or the biggest Ponzi con in history?

You may have heard the saying, “rich as Croesus”. Meaning that you have to exceeding wealthy to be richer than the king of Lydia in Asia Minor in 560 BC. He is believed to be the first person to mint coins as “money” from gold, although I visited a ruin in Rome where the Italian guid said the Romans first minted coins and coined the phrase which became known as money. Why was Croesus fabulously wealthy? He formed and controlled his own currency which dominated the region.

Now others want to form their own currency and dominate the financial markets.

Is it a currency or just a speculative investment?

But are cryptocurrencies, such as bitcoin, the answer or are they, in the words of Warren Buffett, a “mirage”?

Buffet has called it wrong on previous technological revolutions, but you have to sit up and listen to one of the greatest investors and richest men in the world.

The leading and most well-known cryptocurrency is bitcoin. In the last five years, the price of a single digital bitcoin has risen from $263 to over $10,000.

However, it rose to $17,000 in 2017 and failed to just over $3000 a year later. It has doubled in price since March 2020, as soon investors sought a “safe” haven for their cash during the financial crisis.

What is Cryptocurrency?

Cryptocurrency is a digital assets design to become a medium of exchange where individual coin ownership records are stored on a ledger in the form of a computerised database records known as the blockchain.

The US dollar is the world reserve currency, which gives America a tremendous advantage because other countries need to change their currency into dollars to trade internationally.

China is launching its own digital currency based on its paper currency, the Yuan. Although not the same as a cryptocurrency, China would like to break America’s dominance in the financial markets and become the most widely used international currency.

How do you buy a Cryptocurrency such as a bitcoin?

The answer is you exchange your real money dollars or pounds for digital bitcoin stored in a “wallet”, which comes in various forms.

When you sell it, you get back your dollars or pounds.

Bitcoin is not a practical and real currency accepted by markets and governments. You cannot go down to your local supermarket and pay for your shopping in crypto currency. Well, not yet. Digital currency is definitely coming as the banks try to phase out money using “Covid 19” as a convenient excuse, but whether this will be in the form of bitcoin is another question.

Furthermore, if you accepted payment in bitcoin in December 2017 when the price of one coin was equivalent to $17,000, a year later that bitcoin would be worth $3000.

There are many other contenders for the digital currency market, including powerful companies like Facebook with their libra currency.

Some form of digital currency will eventually replace paper money, but that will be a sad day for all of us. Money in your pocket represents a bit of freedom and more difficult for banks and governments to take it from you.

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Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.

Are you ready to adapt to the new economic model?

As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?

By Charles Kelly, Wealth Mentor, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon https://bit.ly/2MoneyBook.

If you’d like further information on wealth mentoring and coaching, how to survive the crisis and even quit the rat race, email me at [email protected] or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com

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