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Cryptocurrencies and their rise

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Over the past few months, cryptocurrencies, most prominently Bitcoin, has exploded in popularity. A lot of people are starting to invest, mine and really consider getting into Bitcoin. For those unaware, cryptocurrencies are virtual currencies that aren’t regulated or connected to any country/bank. This makes them fairly unstable and potentially unsecured, but they are also very useful and convenient.

A lot of OFWs (Overseas Filipino Workers) are actually using Bitcoin to send the money they make home to their families. The advantages of doing this are faster turnover rate and fewer fees to pay but at the cost of the unstable nature of Bitcoin. For all they know, the next day when their families receive the Bitcoin, the value might crash and they lose all the money they were gonna send home. It’s obviously a risk many are willing to take though because a lot of OFWs are doing this. It’s to the point where the Philippine government is looking into regulating this practice, which is fine as long as they don’t take away the convenience factor, otherwise, the OFWs will just stop using this method.

Tagalog Buddy

I think the government looking into regulating Bitcoin is a good sign, it means they are open to the idea of virtual currencies. I know that Indonesia banned the use of cryptocurrencies for transactions int he country, which I don’t think is a good idea just because the more prominent these currencies become, the more people will want to use them for more and more stuff. I think having the choice of using regular Php or Bitcoin is nice. Of course, the businesses in the country will have to adapt as well, and if not enough of them get on board then the convenience factor will be lost and the currency will be less used.

A lot of people now are holding onto Bitcoins (or part of Bitcoins), with many more jumping in. The value is still rising, which is kind of scary because the bubble is bound to burst soon and the value will crash right? Who can say, it might burst tomorrow or even years from now. That’s why I personally wouldn’t invest in I or at least, not this late in, there’s too much uncertainty.

I mentioned security risks, and those security risks are very much a big problem with Bitcoin. Just weeks ago, millions of dollars worth of Bitcoin was stolen. You might think, “just store it in a bank” but that’s the thing, Bitcoin isn’t connected to any bank, so there s no bank to store it in. Well, unless you store it on a flash drive and store said drive in a safe deposit box in a bank. If your money is stolen from a bank, you can simply call your bank and get it sorted, if your Bitcoin is stolen, you’re out of luck as it’s on you.

Overall, cryptocurrencies are looking like they have a bright future, but really only time will tell if they stabilize or crash. We’ll see how that turns out, as well as how the Philippines plans on regulating it.

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AJ Martin

Aaron Martin, also called "AJ," is the son of Bob & Feyma Martin. Aaron is a graduate at Ateneo de Davao University High School in Davao City, Philippines. Aaron was born in the USA, but has lived in the Philippines since age 3.

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Aaron MartinAlexander MooneyPeter BellAlex Kennedy Recent comment authors
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Alex Kennedy
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Alex Kennedy

I agree. I wish I invested in Bitcoin early on bit I’m reluctant to do so now.

Aaron Martin
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Aaron Martin

Yup, wish I had invested before but now it seems like it’s too scary haha

Alexander Mooney
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Alexander Mooney

Check out some youtube videos. People are still making money with bitcoin. Just like people are still making money with real estate.

Think about it like this. WAAY back in the day the US government gave away land for free. Just because you didn’t get in on the free land doesn’t mean you can’t make money buying real estate.

Peter Bell
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Peter Bell

I have always been, and remain, very suspicious of crypto currencies. They rely on people ascribing value to something which has no intrinsic value or purpose. One might argue that this also applies to commodity markets and government currencies but these do, at least, have almost universal acceptance and physical goods to back them. Ultimately, someone will stand up and say “But the emperor isn’t wearing any clothes” at which point the crypto currency bubble will burst. Morally, I cannot convince myself that I should profit from something so intangible, in the same way that I avoid MLMs, Pyramid schemes,… Read more »

Aaron Martin
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Aaron Martin

I was also suspicious of them, but they’ve become very popular and more and more businesses accept them. I think over time, as more countries and institutions recognize it, it will become more stable and less of a gamble.

Alexander Mooney
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Alexander Mooney

Intrinsic value is secure, low fee & easier transactions. It takes thousands of dollars in electricity/computing power to create a single bitcoin. Bitcoins can’t be printed out of thin air like a US dollars are.

If we think about it the US dollar is a bubble as well. It wouldn’t take much for the USD to crash or any other currency for that matter. The US is barely recovering from a real estate market bubble, that doesn’t mean real estate is a bad investment.

Alexander Mooney
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Alexander Mooney

Actually the bitcoins which were stolen were in a type of “bank” a company which holds bitcoins for you. If each person withdrew all their crypto currency and stored them on their personal desktop wallets that would mean a hacker would have to compromise thousands of wallets to get the money, in the case of the stolen bitcoins they only had to compromise the wallets held by the company which made it an easy target. The most secure way of storing bitcoins is on an encrypted partition on a local wallet. The great thing about bitcoins is there is a… Read more »

Aaron Martin
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Aaron Martin

Yeah, the company that held the Bitcoin seemed like a bank but I don’t think they are regulated as a bank. I’m sure when Bitcoin becomes more popular, banks that are regulated as such will pop up.

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