STOCKS 101 – Stocks Explained to the Beginner
Episode 18. All About Cryptocurrency
Bryan Reich - Website: www.makestocksfun.com
If you want a copy of today’s seminar,
Everything is updated on Make Stocks Fun website.
My name is Bryan Reich. I am a successful stock investor and my goal is to become a stock millionaire.
In these sessions, I want to pass on my knowledge of wins and losses so you can enjoy the success I have today.
In last week’s interesting episode, we discussed “Fire your
Financial advisor”
We discussed key concepts on why you
Can do investing yourself especially if
You are NOT receiving the returns they promised.
With books and the help of resources at our website
You can invest in stocks on your own.
Has anyone invested in cryptocurrency?
<Group Discussion>
Quote of the week: “Make the money, don’t let money make you. Change the game, don’t let the game change you”.
Funny quote “ Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” Peter Lynch
Cryptocurrencies: Can you make $20K a week?
Cryptocurrency was invented due to the bank crash of 2008. People were furious as corrupt bankers and mortgage lenders were rewarded for a dubious system of prime sub-loans which was a direct effect of the Clinton administration taking out the Glass-Steagall Act which made mortgage notes available to investors.
It was 2004 and I was looking for my first investment property. Every time my realtor and I noticed a home realty sign in the yard, the place was already sold seemingly before it ever went to market. One property of interest had one open house with 16 offers above market price on a Sunday afternoon. I shook my head as I said” I just want a duplex, is it that hard to buy one”?
The shift had started and in the following 2 years, the application process for buying a home would be thrown out the window. No Job, who cares if you can afford this house? No credit, who cares? We will give you this mortgage and even a second line of credit so you can furnish your debt-ridden place even if you have no job. I had full intent on moving to Phoenix in 2005 but a line of wannabe homeowners and a real estate market flipped upside down delayed my dreams.
That is the story that started the great recession and home meltdown of 2008. People were fed up with the all-mighty dollar and wanted a change from the system. The system was corrupt with deregulation and mortgage loan officers were getting bonuses for writing more loans. That is why Bitcoin was invented so people could get away from the dollar and the tax. They wanted to stay anonymous and buy as they pleased without Uncle Sam’s involvement.
It was 2012 and I had just finished watching The Social Network, aka Facebook movie, and as the movie closed, I wondered what the Winklevoss twins were going to do with all their awarded legal money for Zuckerberg’s infringement. I followed the rabbit hole that led me to Bitcoin. I knew they wanted to create something to change this world and since they couldn’t have Facebook, there was an opportunity for something else that would be revolutionary.
Bitcoin was cents on a dollar in 2012 and I was ready to load up $500-$1500 and at that time Bitcoin was 2 cents. I went to the bank and said I will take some Bitcoin, please. Banks looked at me in utter confusion. Back then you couldn’t buy Bitcoin, you had to mine it. You needed a high-density graphic card and a complex algorithm. As the algorithms were solved the equations became more difficult. If you could stomach the high energy bill, your computers would have to run non-stop to produce Bitcoins. To this day you still can mine Bitcoin through complex blockchain technology. I became frustrated and eventually gave up on my Bitcoin dreams.
Why do you feel Bitcoin is in “play”? <group discussion>
Here to stay- dollar needs competition.
Do you feel like Bitcoin could be the standard global currency?
What are the current changes in our world?
5G – you can see more towers being installed here in Arizona.
Faster- The world continues to speed up and we learn faster through this information age.
Whole Foods doesn’t accept cash in their self-checkout lines.
AI - Everyone knows about ChatGPT. 30% of all searches
Are now done through AI vs Google.
Who has done searches using ChatGPT?
We can’t talk about Bitcoin without bringing up blockchain.
Blockchain is a type of shared database. Blockchains store data in blocks linked together.
The future of blockchain technology holds significant promise and is likely to continue evolving in various ways.
Scalability: As more applications and users adopt blockchain, there is a growing need to improve transaction throughput and reduce latency.
Let's name a few:
JPMorgan Chase: They have their own blockchain platform called Quorum.
Walmart: Utilizes blockchain for tracking food supply chains.
Amazon: Filed for blockchain-related patents and may explore blockchain for supply chain and other applications.
Dubai: Aims to become a blockchain-powered city.
Privacy and Confidentiality: Enhancing privacy and confidentiality on public blockchains is a priority. Technologies like zero-knowledge proofs and confidential transactions are being integrated into various blockchain platforms to protect sensitive data while still benefiting from the security and transparency of the blockchain.
NFTs and Digital Assets: Non-Fungible Tokens (NFTs) have surged in popularity and are being used for digital art, collectibles, and even tokenizing real-world assets like real estate. The future may see broader adoption of NFTs and the development of new use cases.
Does anyone know what NFT s are or know someone
That has bought one.
Blockchain and IoT: The integration of blockchain technology with the Internet of Things (IoT) has the potential to secure and streamline various IoT applications.
Examples of these applications:
Smart Home and Office.
Wearable Devices.
Autonomous Driving.
Agriculture and Smart farming.
Industrial IoT for manufacturing.
Disaster management.
Smart Grids and energy management.
Big Data Analytics.
Regulation and Compliance: As blockchain adoption grows, governments and regulatory bodies are likely to develop clearer frameworks for blockchain and cryptocurrencies. How these regulations evolve will significantly impact the technology's future.
Remember that the blockchain space is dynamic and subject to rapid change. The future of blockchain technology will depend on technological advancements, market demands, regulatory developments, and the creativity of developers and entrepreneurs in the space.
Various types of crytocurrencies-3 Types
There are thousands of cryptocurrencies in existence, each with its unique features and purposes.
Bitcoin (BTC): Created by an anonymous Bitcoin is the first and most well-known cryptocurrency. It is often referred to as digital gold.
Litecoin (LTC): Created as the "silver" to Bitcoin's "gold," Litecoin offers faster transaction confirmation times and a different hashing algorithm.
Filecoin (FIL): Filecoin is a decentralized storage network that enables users to rent out their unused storage space or purchase storage from others using FIL tokens.
These are just a few examples, and the cryptocurrency landscape is continually evolving, with new projects and tokens emerging regularly.
Tokens are created and operate on other blockchains, using their technology and infrastructure. Tokens can represent a wide range of assets and have various use cases:
Stocks that involve bitcoin
Here are five companies that are related to the cryptocurrency sector:
Coinbase Global, Inc. (COIN): Coinbase is one of the largest cryptocurrency exchanges in the United States. It allows users to buy, sell, and store various cryptocurrencies. Coinbase went public in 2021, making it one of the most notable companies in the cryptocurrency sector.
NVIDIA Corporation (NVDA): NVIDIA is known for its graphics processing units (GPUs), which are popular among cryptocurrency miners. The company's GPUs are used in mining cryptocurrencies like Bitcoin and Ethereum. Additionally, NVIDIA has shown interest in blockchain technology.
Advanced Micro Devices, Inc. (AMD): Similar to NVIDIA, AMD manufactures high-performance GPUs that are used in cryptocurrency mining. AMD's products are often favored by cryptocurrency miners for their processing power.
Square, Inc. (SQ): Square, founded by Jack Dorsey, is a financial services company that offers a range of products, including the ability to buy and sell Bitcoin through its Cash App. The company's involvement in the cryptocurrency space has grown in recent years.
PayPal Holdings, Inc. (PYPL): PayPal is one of the world's largest online payment companies. In 2020, it announced plans to allow its users to buy, sell, and hold cryptocurrencies like Bitcoin and Litecoin through their PayPal accounts, significantly increasing its involvement in the crypto
Best way to invest in bitcoin
Investing in Bitcoin can be a profitable endeavor, but it also comes with risks. Here are some steps to consider if you're interested in investing in Bitcoin:
Educate Yourself: Before investing in any cryptocurrency, including Bitcoin, it's essential to understand how it works, its technology, and the underlying principles of blockchain.
Risk Assessment: It's a speculative asset, and its price can fluctuate significantly in a short period.
The US government has over 5 billion in bitcoin that was seized from illegal operations.
Choose a Reputable Exchange: You'll need to use a cryptocurrency exchange to buy and store Bitcoin. Some popular exchanges include Coinbase, Kraken, Finance, and Bitstamp.
Secure Your Investment: After buying Bitcoin, it's crucial to store it securely. Consider using a hardware wallet
Risk Management: Set a clear strategy for when to buy and when to sell. Use stop-loss orders or other risk management tools to protect your investment from significant losses.
Beware of Scams: The cryptocurrency space has its fair share of scams and fraudulent schemes. Be cautious of offers that promise quick and guaranteed returns. Always verify the credibility of the projects and individuals you're dealing with.
Remember that the cryptocurrency market is highly speculative, and prices can be extremely volatile. It's essential to do your research, understand the risks, and make informed decisions when investing in Bitcoin or any other cryptocurrency.
Key losses in bitcoin/crypto
Cryptocurrencies have gained significant attention and popularity, but they also come with several downsides and risks. Here are some of the key downsides of cryptocurrencies:
Lack of Regulation: Most cryptocurrencies operate in a largely unregulated environment, which can lead to fraud, scams, and market manipulation. Investors have fewer protections compared to traditional financial markets.
Security Concerns: While the underlying blockchain technology is considered secure, cryptocurrency exchanges and wallets are vulnerable to hacking and theft. If your digital assets are stolen, they are often irretrievable.
Limited Acceptance: While the acceptance of cryptocurrencies is growing, they are still not widely accepted for everyday transactions. This limits their practical use for buying goods and services.- What is the acceptance exactly?
It's essential to carefully consider these downsides and conduct thorough research before investing in or using cryptocurrencies. Cryptocurrencies can offer opportunities, but they also come with significant risks, and they may not be suitable for everyone's financial goals and risk tolerance.
Next week we will discuss how to invest $500 and grow to $5000.
Please join us next week because it will be something you don’t want to miss.
Stay tuned to the website to see if we make any bitcoin purchases
In the coming months.
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