How to properly invest in Bitcoin, Blockchain and other cryptocurrencies
People keep asking how to invest in crypto-economy step by step. What I need to know? How not to lose money? How to choose right cryptocurrency that will skyrocket?
In this guide you will find exhaustive answers to many of those questions. But before I will explain you how to invest, I will better answer the question, why the hell do you need to invest your hard acquired money? I will try to explain it as simply as possible.
Invest because it is growing.
There is such a thing. Over last 20 years with the invasion of the Internet, many people have earned amazing amounts of money on one simple thing as a Network Effect. What the hell is that? In 70-s there was one engineer Robert Metcalfe. He fully invented what we now call Ethernet. In order to make a profit on this invention, he was selling the network cards. At that time people did not understand why the computers need to connect to the network. Robert realized that it is necessary to find a reassuring argument that would prove that his network card is a panacea for all their illnesses. Robert said:
The network’s value is proportional to the square of the number of
users in this network.
Well, you buy 10 computers without a network card and their conditional costs is equal to 10. But with network cards - conditional costs of 10 computers will be 45! This is 4.5 times more profitable! “Wow” — corporate workers said and began to buy Robert’s network cards.
It turned out that Robert’s consideration is quite reasonable! You can use it for assessment of the Telecom companies which was rolled on a planet with redoubled force. The capitalisation of Telecom companies depends on the number of its users. And the dependence was not a straight line but a quadratic. At the dawn of the social networks, venture capitalists quickly remembered the cherished formula and applied it to such things as Facebook, Twitter, Skype, etc. So the Metcalfe’s law has led to the fact that millions of Ethernet grids has evolved into what we now call the Internet.
Simple truth — if the number of network users is steadily growing, the exponential growth of our investments is expected. Thus, Facebook was worth more than $ 300 billion. The formula is simple. Looking for a network which is growing steadily at the very beginning => put money => wait => profit! The question is — why Bitcoin? Because it’s the same network and it’s growing. Is growing quickly. Judge for yourself:
2010–10 thousand users
2012–100 thousand users
2014–1 million users
2016–10 million users
Of course, these figures are very approximate, because there is no way to determine the exact number of users. The numbers listed above is my own assessment. To make it look more convincing here is a graph of Blockchain.info wallets
Question : How long it will grow and when the growth will slow down?
Answer : Blockchain technology refers to a class of technologies “No Way Back”. This is when Homo sapiens starts to use something and could not imagine how they lived without it. Here’s a graph in the case of TV, electricity and other technologies:
Growth will be carried out at the S curve until saturation occurs.
There are about 3.5 billion people who use the Internet, and about 20 billion connected devices or just bots. Considering that the Bitcoin network has properties that are not offered us by any Government or Corporation, we can assume that there is a high probability that the majority of connected people and machines will use this network. What are these properties?
- No taxes
- Free opening of accounts. They are simply calculated from your
private key :-) - Low transaction fees
- Predictable and transparent clearing. You always know what is the
status of any transaction - The transaction cannot be rolled back
- Nobody asks the personal identification information
- Nobody can write off your money
- Nobody can block the account
- No stupid limits
- Suitable for all forms of property, not just currency.
- A complete history of all transactions
- Possibility of privacy and anonymity
The list of benefits can go on and on, but you get the idea. This is a kind of manna from heaven, which is better money in comparison with paper dollars. But most importantly:
It’s just the economic miracle of mathematics, cryptography and computer science.
Investment in the blockchain as the best investment opportunity since the start of the Internet
👍 keep it up my bro.....
Great article look forward for new ones.
thank yu
Nice post Vic!
thank yu