Bitcoin special session notes
A room full of expectant people wanting to take a moment to learn more about why Bitcoin is the trending topic in investing. Thanks to Luke Moroney our speaker for the night. Luke is a cryptocurrency investor and is passionate about creating new revenue streams.
There are many ways to plump your cash flow through different types of investment strategies. We know that everyone is different and we recommend that you choose an investment strategy that suits you and after you have spoken to professional financial planners.
Speak to those who are in your support team to make the best decision that is right for you. Investing in cryptocurrency and bitcoin is becoming one of the many ways that you can invest and create a second revenue stream. Luke went through a very interactive discussion and this is what we learnt from the evening:
What is important when creating wealth?
- Connection with your support team. – Having a tribe you can bounce ideas off is so important for your constant growth and stimulation in the passion you desire. There are people that have great expertise in investment and know what the number should look like. So stay close to those who can support you and give advise.
- Understand and learn the future of the product – when you want to invest in something understand whether it will be ongoing or not. There are many opportunities that arise but also just as many that do not make the distance. Know what is backing up the growth and who is playing in the space that will leverage it.
- Profits – Playing in a space that will be generating more wealth and not put you in more debt.
What is Bitcoin and where did it come from ?
Bitcoin is a cryptocurrency that was created from the development of a technology called the blockchain that allows information to be distributed but not copied. It is the first decentralised digital currency (meaning you can make a payment without needing a bank or third party).
The network is a peer to peer and the transaction takes place between users directly through the use of cryptography . The transactions are verified through network nodes and recorded in a public ledger called the blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
There are and will only ever be 21 million bitcoins. You must be asking where the bitcoins actually come from or as they term it ‘mined’ from? As described on the bitcoinmining website a special software is used to solve math problems and are issued a certain number of bitcoins as an exchange. Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.
The movie Banking on Bitcoin was a recommendation for the night which gives a broad perspective on where the concept was birthed from and also how the first commodity to ever be purchased using Bitcoin was a Pizza in 2009. Since then the value of bitcoin has escalated at an alarming rate, today there are large possessions such has Lamborghini’s, houses etc being purchased on bitcoin. People have opened up to the use of bitcoin as a true currency which is where the fun starts.
How can you build wealth with bitcoin?
The facts are that only 9 out of 10 people still do not have bitcoin which is almost equivalent to 15 million people. The more people start to be aware of it and use of it grows as an accepted currency, its value will continue to incline. Therefore starting to get bitcoin in your investment portfolio could grow your wealth over time. Bitcoin is one currency amongst many digital currencies. There are three main ways which include:
1. Trading Bitcoin
This involves the constant review of the market where you buy on the low and sell at high. And benefit from the difference. Constant monitoring of the market is required thus is very involved.
2. Mining Bitcoin
Mining required the equipment, it’s the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released.
This is a complex way that you need to know how the exchange markets work to be able to inter-trade between currencies. In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance.
Without being an expert this may seem overwhelming this is why there are companies that can do this on your behalf. With the Bitcoin that you purchase on the exchange, place it into an investment wallet where you can see up to 40% return on your capital. Whilst receiving 1% every day which you can withdraw if you want.The maturation periods can run anywhere from 140 days to 1000 days depending on the company that you use. Researching and understanding more about the company is important so that you are comfortable.
Taxman and the Bitcoin
It is important that you seek consultation with a financial planner and accountant to understand what you need to do. There have been press releases issued out by the government, so be sure to be aware of the laws around investing in Bitcoin and cryptocurrencies. Here is a link that was shared on the night https://www.moneysmart.gov.au/investing/investment-warnings/virtual-currencies
Learn more about Bitcoin:
The Bitcoin Phenomenon https://goo.gl/GB5nzq
Bill Gates perspective on Bitcoin https://goo.gl/UqjHeZ
Send us an email if you are interested in more information.
About the speaker Luke Moroney
Luke is the owner of First Time Property investing. He started with the passion of building wealth for himself which turned into assisting other individuals to learn from his experience and guide them through ways of investing through Property and now into cryptocurrency. Contact Luke if you want to know more.