Archive for November, 2017
So, it is near the end of 2017 and as I look down this page, it has been quite a while since I used this page for anything, so I figured I would use it again for the purpose of telling you about cryptocurrency and the mining that can go along with it. Since my last post, a long time has past (2013 I see) and during that time, a friend of mine that goes by the name KornyKory on twitter, got me started in the Bitcoin world back in 2015.
Now mind you, Bitcoin actually got started in 2008 after the whole house market crash and all things related to it, but it really didn’t starting gaining traction until 2010 or later (don’t quote me on that). I am not going to give you a history lesson on Bitcoin, but the basic idea is that the creator of Bitcoin, wanted a decentralized way of sending and receiving money that didn’t include the world banks. I am basically giving you a high altitude version, because you don’t really need the details, but just know that Bitcoin is an online digital currency that allows you to buy and sell ‘things’ (everything to be more specefic) that knows no boundaries.
Since the inception of Bitcoin, it has grown into other alternative digital currencies known as AltCoins (alternative coins to bitcoin). One of the most popular is called Ethereum or ETH for short. The idea behind these altcoins is that bitcoin had a really great idea, but they wanted to make it better and faster. So to this day, there are over 990+ altcoins out there and the list keeps growing! All of that aside, I wanted to get you to where I am today with Bitcoin and cryptocurrencies.
So back in 2015, my friend KornyKory,who I had met through playing Ingress, which is a whole other ball of wax on it’s own, had spoken to me about Bitcoin and I had heard of it and kind of had an idea, but never really looked into it. He was trying to show me stuff about it and get me into the idea of buying Bitcoin. So he started me off by clicking on some link and getting like $0.000048BTC or something small like that in the initial purchase for being an affiliate I guess, through a company called ChangeTip. It was something small and I never really paid any attention to it again; I was just helping a friend out. Until months later, when ChangeTip went out of business and was telling everyone to get their balances out and move into some other service like CoinBase to maintain their balance.
So I moved my BTC over to CoinBase and for creating an account, I got a $1 USD worth of bitcoin.
So now my account was filled with $0.004499 BTC in 2015. Back then, obviously, you can tell, bitcoin wasn’t really worth that much. Fast forward 2 years and my same friend got me back into talking about bitcoin again as it was starting to hit the tech news cycles again. This time, due to the rising cost of bitcoin. Over the years, it has gained popularity and notoriety and the price per coin has SIGNIFICANTLY gone up. Around the time I was looking into it, near the end of October 2017, bitcoin had gotten over $5,000 USD per every single bitcoin.
So, I fired up my email and began looking for all of my bitcoin transactions, knowing that I had some bitcoin of some kind and needed to know how much! So I began looking around and found the email where it all originated and was happy to find that I had apparently put in $25 USD into BTC the same day I brought over my balance from ChangeTip. The sad part, for some reason, it got cancelled 4 days later for some unknown reason.
As you can see in the email above, the going rate for BTC was roughly $225.49 USD = $1 BTC. I am not really sure why this transaction got cancelled, but I am kicking myself for it now, because as of this writing, it would be worth $927.27 USD (current BTC price – $8,115.32). All of that aside, I still had the original $0.004499 BTC, so I began looking into it again around the beginning of October 2017 and was getting excited! As I said before, it was over $5,000 USD at this point and now my $0.004499 BTC was worth about $25 and I literally did nothing but hold on to it!
Outside of this, I had recently cashed out my 401k (I know this is a bad idea, but I was facing some extenuating circumstances) and had some ‘extra’ money on hand and I decided I would take some of it and try out this bitcoin thing again, but with a lot more money this time. So I set aside $1,000 USD and purchased my 2nd bitcoin on October 23rd, 2017. The then, going rate was $5,671.87 USD/BTC. This transfer of funds would take right at about a week. As you see in the email below, it would not be available until October 31st.
The fun thing about BTC, is it is a lot like stock trading in the New York Stock Exchange at this point, due to the high volume of BTC and the availability of so many other altcoins out there. So, even though, I bought at a certain price, the value of the purchase could go up, even in the 8 days I had to wait just to gain access to my funds. Now, you will also see a transaction fee associated to the purchase, which goes to the system (in a generic sense, but partly to the pool or miners that are doing the work processing your transaction), so I actually got $985.32 in the exchange, which is roughly a 1% fee (0.01468 to be exact). This can be seen like the processing fees for businesses that have to pay Visa, Mastercard, Discover to process their payment system of plastic cards.
So, after my 8 days of waiting was up, sure enough, the price of bitcoin had gone over $6,000 USD. I had purchased in at $5,671.87, but now the price was $6,143.85. Now my $0.17372054 BTC was worth $1067.31 (well $1,067.312939679). In the 8 days I waited for access to my funds, I had already gained back the transaction fee that I paid and made money! Just about $67.31, but that was cool! I literally didn’t have to do anything but wait and made $8.41 USD a day in waiting! So I began looking more into this.
As you see in the chart above, the price began to increase even more on a daily basis. This again, was just in the price of BTC going up, just like the cost of a stock in company, but this wasn’t a company, it was digital currency! I was getting excited! So I watched it for a few days and by November 2nd, BTC had now crossed the $7,000 price! It was crazy! Some analysts and bitcoin people are already predicting $10k by the end of the year, but this was crazy to watch, in just less than 10 days that I made my initial purchase!
I was getting more and more excited as the days passed and I had been reading more and more about bitcoin and cryptocurrency and the history and current developments. I was trying to get my hands on everything I could, because it was obvious, this was getting off the ground. So as my money was growing, I was trying to figure out what to do with it. So on November 7th, I had researched and thought Ethereum would be my next purchase. By then, my initial purchase had turned into roughly $1,300 USD. The then price of Ethereum was roughly about $300 USD per ETH coin. So I took my profit and bought $0.97573352 ETH. I didn’t get a full 1 ETH coin, due to processing fees and such, as previous with BTC, but it was enough to make me happy.
So, in the first 15 days of owning my BTC, I had made roughly $20 a day, without lifting a finger! I was then able to transfer that profit into an altcoin and see where that would take me! I have not looked back and this experience, I plan on documenting as I go along. I want to share this experience as it happens and hopefully get more people on board the cryptocurrency bandwagon and see if it can help you! As always and in every bitcoin and cyrptocurrency video I watch, I will repeat what they say, I AM NOT A FINANCIAL ADVISOR. I am just someone taking this as it comes at me and see where it goes! If you think you want to join, I can set you up with a CoinBase account and you can get started too! Complete transparency, if you use the link above and buy $100 USD or more, then we both get $10 USD in bitcoin (which is roughly $0.0012354800210526 BTC)!
I say all of that to talk about this graphic below, known as the bell curve. It is interchangeable to multiple topics, but this is one I think best fits the idea of where bitcoin is and where it is going. The time of the innovators and early adopters is already passed and we are now getting into the early majority. I consider myself the early adopters and at this point and of this article, you will be in the early majority. Bitcoin and other altcoins are going to become a real thing in the future of payment options. Just like credit cards started out as diner’s club cards and mobile payment systems are now becoming a thing, bitcoin and all of it’s little brothers and sisters will also be the future.