My Cryptocurrency Journey
I knew about cryptocurrency since 3 years ago. But at that time I was not interested to invest my money in it. I thought cryptocurrency was purely speculative and gambling. I hate gambling !
Till around a month ago, when I read an article about bitcoin prices that rose up to USD 6,000. That was really crazy, I thought ! I remained skeptical, but started to research to find out what those craziness all about. It didn't take long till I realized that all my thoughts about cryptocurrency were wrong !
Then, at early of November'17, I began to invest in crypto. At that time I started to invest around USD 7,500. Almost two weeks later my investment grew to be as below :
![Blockfolio.png](https://steemitimages.com/DQmZ2KSPn3egjdknAv2tvCWwgDFJFq4hHZ7z9feKr43v4ut/Blockfolio.png)
That’s quite a lot for me but it’s nothing compared with the future opportunities that possibly happened.
So now maybe you think that I started to love gambling & speculation because I made significant profit on it. Well, you are wrong ! Because till today I still hate gambling and avoid it as much as possible. So what made me change my mind ?
The Blockchain
When most people think about cryptocurrencies, their entire focus is on bitcoin. They are missing the forest for the trees when it comes to cryptocurrencies.
![blockchain is the tech.jpg](https://steemitimages.com/640x0/https://steemitimages.com/DQmdCjiNSQoVj8NfcwZzs9RdfEQNqbFoUcrvUnfTonVzXJk/blockchain%20is%20the%20tech.jpg)
The truth is : Bitcoin is just part of a much, much bigger picture. Comparing blockchain with bitcoin similar like comparing Internet with Google. As we all know, google is just a platform that uses internet technology to run it. There are still many other platforms like amazon, ebay, paypal, facebook, alibaba, etc…. you named it ! Bitcoin also the same….. it’s nothing without blockchain technology.
The blockchain was initially developed in 2008 as an online network to track bitcoin payments. Each transaction record is called a block. A block is essentially a line of computer code. Below is a sample of a line code of transaction block :
36d5d11d8aaaa5a778defe871681c1859b62a96ede57d8080c70960701b98e0d
The above block of code is programmed to accept bitcoin as payment. After a block is verified, it’s added to the chain of previous blocks as below
36d5d11d8aaaa5a778defe871681c1859b62a96ede57d8080c70960701b98e0d
e023a3584a29015e3180bda549d2769993062d8983dc73d25adae10b50f48105
45337b01b621445afa836a1b264e0e739c8f430d2b239bf3d24d89743f96dc59
8991a3bbd965bb5d98dfc2d0f00a9da38081f5b18570b0f2dfd1ece874950cca
And so on……
so that's where the “blockchain” name comes from !
This blockchain is a bookkeeper adding entries into a “ledger”. But unlike company’s ledger, this “ledger” is public and online.
The blockchain is maintained by thousands (or even more) of in¬dependent computers. These computers constantly “talk” & synchronize each other, comparing transactions data to make sure the ledger is valid. Each individual computer connected to the network (called a node) must verify a transaction before it’s added to the chain. By storing data across its network, the blockchain eliminates many of the risks that come with storing data in a central location.
![blockchain.jpg](https://steemitimages.com/DQmYV2vmxcWaEYMXSoV7EZpWtvTLfsev827YumP3t1Ve3eu/blockchain.jpg)
At this point, you might be asking : since the data is accessible to anyone on the network, hackers could get into it easily to change the transactions or do whatever they want to do ?
Well, it’s theoretically possible to hack the blockchain, but you would have to hack the majority of the com¬puters in the entire network simultaneously (more than 50 %). Suppose there are 10,000 node on the network, hackers should hack at least 5,001 node and change the blockchain data on all those hacked node. Sound difficult, right ? Well, there is an easier way to do it. Hackers could buy new 10,001 nodes and connect them all to the network, so now total nodes in the network are 20,001 and hackers control more than 50% nodes of the network !
But……
That would require a massive investment of capital. GoBitcoin website estimates that it would cost $700 million today in raw computing power to hack the bitcoin blockchain.
Then again you might say : Well, with bitcoin market cap more than USD 120 billion and growing, it’s a worth investment, so hackers might find some investors to fund their operation.
Agree with that. But that’s just the first hurdle. Hackers would need computing power equivalent to 10 days’ worth of New York City’s energy consumption to hack the bitcoin blockchain. Not only that, they have to complete the hack before the next block was mined. Please note that the bitcoin blocks are mined every 10 minutes. It means, hackers would have to compromise more than half the computers in the network at the same time… and do it all in under 10 minutes (some other cryptos took only a few seconds before the next block mined)
So you can see, while technically possible, it’s imprac¬tical to hack a blockchain
Decentralized Data Storage
Everyone relies on data storage. Institutions like banks, companies, and governments use data storage to back up financial records, banking records, credit card information and even national secrets.
But there is a problem.
The current data-storage model is centralized. And that makes large databases juicy targets for hackers. When you store all your data on one centralized serv¬er, a hacker only has to break through a single line of defense to steal all of it.
![decentralized.png](https://steemitimages.com/640x0/https://steemitimages.com/DQmUXrhCeQuUb98V7KW5DpBnMduaK7gibA65i9wUfZE8THv/decentralized.png)
Imagine you have a castle. In that castle, you have $1 billion. Thieves only have to break through your castle walls to get your $1 billion. It’s difficult, but it’s worth the gamble because the payoff is so large.
That’s the problem with this centralized model of data storage. Each trove of data becomes a high-value target. Imagine instead of having one castle with $1 billion in it, we had 1 million castles that each had $ 1,000 in them? For $1,000, what are the odds anyone would even attack your castle?
Breaking into a castle to steal $1,000 is just not worth it. And the costs to break into 1 million castles to steal the entire $1 billion would be astronomical.
That’s the power of a decentralized model.
You don’t keep the data in one place. You split it up, encrypt it, and disperse it. That makes any attack against your data costly.
Decentralized storage is the future of data storage. Everything from your personal data to your most sensitive data will be stored this way. Large-scale data hacks will become a thing of the past.
**So….It’s all not about Bitcoin **
There are many coin using blockchain technology that have bright future
Ethereum, an open-source, public, blockchain-based distributed computing platform featuring smart contract.
Ripple, focused on becoming the world’s largest payment platform for banks. It gives banks a uniform currency that can be used to complete transactions across multiple types of pay¬ment platforms. It’s faster, more transparent, and cheaper than the current SWIFT payment system.
Monero that solves two of the key problems with bitcoin which are “scaling problem” & “privacy”
Steemit, a social media platform that rewards content creators. And it’s threatening to overthrow Facebook’s supremacy.
Golem, a decentralized sharing economy that allows people to rent out their unused computing power.
Augur, a decentralized prediction market that lets you forecast events and be rewarded for predicting them correctly.
DigixDAO, an asset tokenization platform.
Melonport, blockchain software for asset management.
Filecoin, a decentralized sharing economy that allows people to rent out their unused computer storage.
And many many others……
Cryptocurrency Gains Regulatory Approval
The U.S. Commodity Futures Trading Commission (CFTC) regulates futures and options markets. Recently, the agency granted the first-ever exchange license to a Bitcoin options service. It's extremely bullish for Bitcoin. The company getting the license is Bitcoin exchange LedgerX.
![CFTC.png](https://steemitimages.com/DQmYf5NcWj5whooFAwJEWg5fYQJ42qpuJ2NQpJx68ntbjp6/CFTC.png)
Here's why the news is so important...
Large institutions such as hedge funds have refrained from investing in Bitcoin. Now, that's about to change. There are two reasons for this.
First, they were afraid of trading a non-regulated asset. Now that LedgerX is approved by the CFTC, this hurdle is removed.
Second, they had no way to hedge risk. Portfolio managers lose their jobs when unhedged portfolios blow up. That's why institutions hate unhedged risk. With the pending launch of LedgerX, institutions will have an options market they can use to hedge their cryptocurrency positions. And that will open the floodgates to enormous institutional investment.
The other thing is the Chicago Mercantile Exchange (CME), came out and they said that they are going to launch bitcoin futures.
![CME.jpg](https://steemitimages.com/640x0/https://steemitimages.com/DQmevomT54YCsHuVA4jectu5Tq79UVHWyBWyoENcg4Q1niF/CME.jpg)
So just like gold futures, silver futures or futures on the American dollar, you’ll be able to trade futures on bitcoin. And this is what has charged up the price of bitcoin recently from about $6,000 to up above $7,500 a bitcoin. The altcoin market, the other coins other than bitcoin, immediately move up.
Japan, the world's 3rd largest economy by GDP, officially greenlighted Bitcoin. It even issued 11 licenses for Bitcoin exchanges recently.
![japan.png](https://steemitimages.com/DQmSvjhRAhmJmAcwQARUv8i5FfY1pYgXaov2PRpWbGH6nYv/japan.png)
Governments will continue to realize that it's better to have a hand in how cryptocurrency is shaped and regulated than try to destroy it (which they can't).
Think back to when the U.S. government finally realized that prohibition was unenforceable. Better to regulate alcohol and tax it.
Lessons From the Dot-Com Bubble
The last time we saw this much early-stage technology opportunity was in the early 1990s. The internet was just beginning to pick up steam… and most people still didn’t understand it. But the internet was showing up on the radar of venture capitalists and forward-thinking investors. There weren't any real consumer applications yet. But those of people knew the technology would be transformational. Then, like now, we started seeing an enormous amount of money pour into a brand-new sector.
![dotcom.jpg](https://steemitimages.com/640x0/https://steemitimages.com/DQmYfZasj9WBiLDwY3qKGJ8oKp3fPNZY3ChmKNMe8hCrPn9/dotcom.jpg)
Blockchain technology going through the same cycle. People have heard of it, but they don’t yet fully comprehend how it will touch virtually every aspect of their digital lives.
We are at the very beginning of a massive technolog¬ical change. As the internet remade entire industries, so will the blockchain. Many people can’t visualize a different future until they are living in it, but by then, much of the really big gains have disappeared.
Within the next few years, we will see an explosion of brand-new consumer and institutional applications for cryptocurrencies and their underlying technology—the blockchain. Just like what we saw happen in the internet space when "go live" applications like Amazon and eBay started hitting the marketplace in 1995.
Bloomberg reports cryptos are minting a new class of millionaires. In the past 12 months, no investment market in the world has grown faster, or produced more explosive gains, than cryptocurrencies.
But don’t make the mistake of thinking it’s too late to get in… 2017 is just the beginning
We aren’t the only ones who like cryptocurrencies. Big money and names are starting to flow into the space.
Venture capitalists have invested over $1.3 billion in cryptocurrency startups.
That includes folks like Peter Theil, co-founder of PayPal and the first outside investor in Facebook.
Marc Andreessen, a Netscape co-founder and one of Silicon Valley’s most influential venture capitalists, is also investing in cryptocurrency startups.
And billionaire Richard Branson… Yahoo founder Jerry Yang… Salesforce CEO Marc Benioff… Google Ventures… and more.
The banks are getting in on the game, too. JPMorgan Chase, Barclays, Citigroup, and Goldman Sachs are starting to invest in cryptocurrency technology.
JPMorgan alone is investing as much as $9 billion.
On top of that, many of the most powerful countries, including China, England, Russia, the Netherlands, and Canada are “beta testing” cryptocurrencies.
![cryptocurrency journey.jpg](https://steemitimages.com/DQmTL133GHqaLP8aVsP45owcuhHjUhkhnvD9K1YaHZKDf31/cryptocurrency%20journey.jpg)
So start your Cryptocurrency Journey now
Before you missed the boat !
Excellent post! I did not even know about cryptos until about 2015. Wishing I'd have found it sooner!
thanks @nikethemutt ..... we still have time before this blockchain & crypto get booming in the next 1 - 2 years
Hey! Awesome post! I too am interested in cryptos and already invested a bit.. made about 12% in 2 weeks!
I resteemed and followed you and would be happy if you would too! Best wishes! And best of luck in the market!
Thanks @pokedude..... we have a similar journey here. Hope we can learn the knowledge and share each other. Thanks for resteemed ! Following you back already...... best regards :)
If I may as, what are the cryptos you think will be growing the most apart from BTC?
I am actually thinking about ripple here, especially on long term.
Other than that, I am really impressed with the profit you made! Keep up the good work!
Ripple is a good investment, current price only 20 cent. Will raise much higher once the big banks give announcement to use it's platform to send & receive money. Monero is a great coin but currently it's price is over value I think. Ether will continue to grow as many new platforms use Ether's technology and held ICO, thus demand will continue raise. NEO and GAS will explode once China govt regulate crypto and not banned it anymore. And of course..... Steemit, this awesome platform that have significant users growing day by day, will become the next big thing in social media, I believe !
Monero is one of those currencies I hold simply because I like everything about it. It doesn't seem to go down when Bitcoin grows, but it still benefits from Bitcoins slightly less private nature. I'm curious though, will steem dollars actually increase notably in value if Steemit grows?
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Monero is what got me hooked. At the time (about two years ago) I mined Monero just because the technology of the project and mining itself interested me. I held, got more involved in learning about currency and why it's important, then the price starting increasing. It was a rush knowing my GPU was making more money than what I bought it for. I'd call it a hobby but cryptocurrency, especially ethereum, is redefining the internet and creating a new version very few of us understand.
I can see that you have a very good sense of investment. 2 years ago, monero price is less than 50 cent, and now it's price increased 25,000%. Ethereum also similar, but gained more as many platforms use it's technology. I believe that nowdays we are still able to catch that kind of opportunities. Invest our money for long term and just wait a year or two, then see how much we can earn from it !
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Wow..... thanks @bitgeek for the report. It's my 7th day on steemit, and this is my 3rd post till I get this achievement. Love it so much :) Steemit is the best !
steemit is dead
I really understand your skeptical and I know why you are saying that..... I read it on your blog. But this is just early stage of Steemit. It will get better and better. Why ? Because we have people like you @bankholiday that care and realize about lack of Steemit's rules, then decide to help, contribute & educate this community to make it better. Hope you could stand with us for a better Steemit community !
that being said, i don't forsee any protocols or changes to make this a better product than say reddit or youtube, i mean if this wasnt decentralized one of those companies could buy out steemit but they can't so i don't see it improving without mass adoption and considering there's no draw other than repackaged crypto news, the community wont grow. I use twitter to follow currencies and coins and youtube for analysis which isn't great but its better than listening to the whale personalities trying to keep people from selling off and devaluing steem, even with the 3.5 powerdown time i don't see a future in this coin.
well... this is new perspective for me ...... thank you for your enlightenment and sharing :)
Hi @sonny.dharmawan... Thanks for sharing this...It was so expository and educative.
Resteemed!!!
thank you so much for your support @yanga
Well for somebody who just started in to the world of cryptocurrency it will be a little bit hard to jump straight to Bitcoin (there might be few exception of new comers that have a lot of capital to invest).
There is no question about what you wrote in the blog and well done as it's well explain and easy to read. We are on the same page as i do think that cryptocurrency is the future!
Nice portofolio you have over there but keep in mind there are a lot of altcoins that really worth attention.
One thing is for sure... slowly slowly Bitcoin (BTC) will increase in value.
Take care, have a great Sunday and always Steem On!
PS: It's strange i thought i post this comment under this blog but show up in a different one...so i delete it from there and repost it here!
Totally agree @georgemales ! There are a lot of great altcoins but there are also a lot of shit coins that we should avoid. That's why we need to be careful and do the research before we invest :)
I know @sonny.dharmawan!
Unfortunately there are more shit coins then great altcoins with great projects and teams behind. But i guess it is what it is and like you mention we need to be careful and make a strong research before we invest :)
As well i suggest to keep track of all your passwords from the wallets as for example i was a little bit distracted regarding this and now i can not remember the password from my BitShares wallet!
Absolutely agree with you! cryptocurrency is the future! Thank you
that's true !
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Interesting post, thanks, and I have followed.
I am also studying cryptocurrencies in detail right now, and it is a bit overwhelming. it just seems to be such a vast playing field with very few rules and there is almost no obvious factors in understanding the frequent and dramatic movements in prices...
I have basically chosen stronger currencies such as BTC, LTC and ETH to invest in for the long term, and then look at trading the swings in many smaller currencies with, pretty much no knowledge of their underlying technology, such as GRS, VTC and RDD... the swings are pretty routine though, so as long as not too much capital is risked it is a pretty easy way of making a bit of extra money...
I am not sure how much longer this can continue however, before a few key and actually useful currencies rise to the top, with most of the others falling away, and the whole scenario becomes a lot more like actual currencies, more stable and predictable and better understood.... very interesting topic right now though, and not one that should be ignored.
I genuinely think that people who are not aware of cryptocurrencies or interested in them at all will fall behind as they are here to stay and a certain part of the global financial scene.
thanks @lifeoptimisation, agree with that. So many coins often make us confuse and difficult to choose which one is the best that potentially raise in the future. That's why we need to do a deep research before we invest. For me, one of the most important thing to be checked before invest to a coin is : who is the men behind the platform & how are their track record. Once I am confidence with their profiles then I will invest.
I agree entirely. I have now got a portfolio of good coins with good technology behind them. I started with a trading mentality, trying to play the swings, but it doesn't work, as, like stocks, no one knows the swings, so you always miss out. I am in for the long term now, buckle up!
good for you :)
Welcome to Steemit and I saw your join in November ;). I think is not a wise idea to show online how much your invest in crypto.
thanks a lot for your advice @chesatochi...... will keep remind that :)
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