Hi
Let me introduce myself. I've been a consumer of steemit for a few months now, but not really a content creator. I love the platform and thought it was about time I introduced myself and hopefully shared a little information that might be helpful to others.
I have a keen (and growing) interest in Crptocurrencies, working currently in the tech sector. I love the idea behind the blockchain and how it could be used to help humanity, but like any technology I believe it could be used for both good and bad. My hope is that this post will perhaps help others new to the world of crytocurrency understand the space a little better, and hopefully alleviate some of the fears they may have.
In this post I would like to answer two important questions, and in doing so present possible insights into the current crypto market, and hopefully provide some tips on how to safely get involved in cryptocurrencies.
How can cryptocurrencies be protected against future (predicted) government intervention ?
How can profits be maximised and protected legally ?
For those of you who have been silently and passively observing the crypto space for a while, the above two questions may resonate with your own thoughts and apprehensions about jumping into the wild world of cryptocurrency.
Lets be honest from the start, crypto is not for the faint hearted! At some point your investment is going to drop (or rise) by 50% in one day, so unless you can find a place of serenity during these troubled times, you are going to end up sleeping with your phone and checking your Coinbase app every 10 minutes to see of BTC has gone up or down.
You may ask, why have cryptocurrencies exploded in the last few months, and what is going to happen in the future ? Honestly, I have no idea but here are a couple of my thoughts:
Governments have racked up so much debt that they need a way to make some serious profits and balance the books, enter BTC. BTC is introduced and pumped to raise the price as high as possible, and suck in as many normal people, who part with all their hard earned savings, in the hope of becoming millionaires. Since the government’s own most of the BTC they simply wait until everyone is invested then sell off their coins at huge profits (books balanced) and the price now tanks to zero. The result is debt is paid off and all the countries citizens are now broken and fully dependent on the state.
Satoshi Nakamoto is a real guy who invented the blockchain, and the governments and banks have been completely caught off guard with the rise in cryptocurrencies. If so they will need to take back control and will look for ways to do so, such as targeting centralized exchanges, banning the use of cryptocurrencies, and criminalizing their use. The result is governments and banks take back control and citizens who invested in cryptocurrencies loose their savings and are fully dependent on the state.
BTC has been used to condition the masses to accept a future digital currency which will be fully controlled by the government/banks, and which citizens will be forced to use. Citizens who have made money in BTC et al will be evangelizing to the rest about how wonderful cryptocurrencies are, and the fear of missing out in the future will drive everyone to accept a new world currency (which was the government’s plan all along). Our current FIAT currencies are crashed intentionally and the result is citizens loose all their wealth and are fully dependent on the state.
Trump starts a war with North Korea
Trump starts a war with China
Trump starts a war with (replace with the country of your choice
Ok so as I said earlier I have no idea what is going on in the crypto, and the above is simply me allowing my thoughts to be expressed. Use the information as you see fit.
I’d like to finish by trying to answer the two questions at the beginning of this post, sharing what I have learned from watching in the wings as the crypto space has unfolded, and providing two tips on how to safely get started in cryptocurrencies.
With all the uncertainty caused by China’s attempts to regulate the use of cryptocurrency, is natural that you may also fear future intervention in the space by your own government. The first tip I will share is to avoid leaving your coins on a centralized exchange. If you do not plan on trading them for a while, store them in an offline (or hardware) wallet, so that you have full control over them. Of course, most people will probably like to trade them on a regular basis to buy and sell as the price fluctuates. This is completely understandable so my tip is store them on a DECENTRALIZED exchange. A number exist but the best by far is Bitshares.
Bitshares is a cryptocurrency exchange similar in many ways to the likes of Coinbase or Bittrex, but differing in one VERY important way – it is decentralized !
As a true Decentralized Autonomous Company (DAC) Bitshares is designed to use a Delegated Proof of Stake (DPoS) consensus model, to provide near instant transaction speeds with extremely low fees, and an infrastructure that can scale to rival the networks of existing financial institutions such as Visa/PayPal etc.
Bitshares decentralized blockchain infrastructure means that unlike centralized exchanges such as Coinbase, it does not have a single point of failure for corruption, data theft, fraud etc and is not susceptible to government sanctions (like have been witnessed in China).
The second question explores how profits made from trading cryptocurrencies can be maximized and protected legally. Let me be clear, if you make profits from trading cryptocurrencies pay your taxes. Do not fall into the trap of thinking your government is never going to find you, or that they are not interested in taxing cryptocurrencies. A time is coming very soon (if not already) when they will be putting pressure on centralized exchanges to release information about customer transactions. Plus, to withdraw profits from cryptocurrency trading, you need to send this back to your FIAT bank account, which provides a simple point of ingress for government regulation. I would like to present you with my second tip which is rather than withdraw profits into FIAT bank accounts, store your cryptocurrency profit in a crypto debit card such as Tenx (PAY).
The whole aim of TenX is to address this exact problem by enabling people to use cryptocurrencies for everyday purchases, by connecting blockchain assets (such as BTC, ETH etc) to a debit card, which can be used for everyday purchases in shops and online. Using this method, you are no longer withdrawing profits which would be liable for capital gains tax, but instead simply spending the profits on your everyday normal purchases. In addition, it features zero fees, 0.5% (ETH) rewards to TenX token holders for every transaction the token holder receives, and 0.1% (rewards for card holders in the form of cash back (PAY).
Hopefully you find the above information useful and I would love to hear your views in the comments below.