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Should Students Invest in Cryptocurrency?

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There are very few students out there who give investing in any shape or form much thought. Most students are too busy having a good time while also trying to pass the next semester. The problem with this type of thinking is that it is very nearsighted.

College does not last forever and although it is a time that should be enjoyed to the fullest, careful thought about the near future also needs to get its fair share of attention. Cryptocurrency is one of the most talked-about investments of recent years and if you think about where Bitcoin started and where it is now, it deserves the talk.

The question remains as to whether students should invest in Bitcoin or not?

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Why The Timing is Right

As a student, there are a couple of things that count in your favor. For one, there is not nearly as much responsibility that rests on your shoulders than when you exit college. In the greater scheme of things, there is much less risk involved and even when you make a bad investment, there is time to make it right.

When it comes to Bitcoin and other cryptocurrencies, its volatility has subsided and the financial world is not seeing it as a fad or a gimmick anymore. It has value and it is starting to surge. Getting in the game earlier rather than later will mean a bigger payout in the end.

Getting a handle on the basics

Cryptocurrencies are complicated and getting into the game is easier said than done. Gaining a firm understanding of crypto is one of the biggest student investments you can make.

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It ranks right up there with completing academic assignments when you are facing deadline issues or simply lack the motivation to write. In this case, you need assignments by writix.co.uk, which is a top-ranked writing service for school and college students. You save yourself a load of headaches and questions and you will have the confidence to take on the investment world.

There is no one guide for students who want to learn about crypto, but the one thing that you should do is to start. To free up some time to delve into the world of crypto, use an academic writer to do your schoolwork while you work on your future return on investment.

Knowing which crypto to invest in

Understanding cryptocurrency basics is essential if you want to make a success out of your investment. The one thing that many people are very wary of is that there are suddenly hundreds of cryptocurrencies available, all vying for their share of the market. You could argue that Bitcoin is too expensive at the moment and that Etherium is too risky, but that is the nature of any new venture.

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There is a significant amount of risk involved in investing in crypto and you should do your homework well before deciding on a currency to invest in.

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It Is Not Just Short Term

Investing in cryptocurrencies used to be perfect for day traders and the average investor, but things have changed. More and more people are turning to cryptocurrencies for long-term investments. If one looks at the history of Bitcoin, it ballooned in 2019 and fell dramatically when that balloon popped.

If you were to jump ship at the time, you would have lost big time. However, for those who held on to their investments, the gamble paid off. Bitcoin recently surged to levels past $50 000 and experts are saying that it could reach even higher.

Online Dangers 

The biggest problem with cryptocurrencies is not that it is so volatile. The fact that it is a digital currency that is traded online makes it a prime target for internet fraudsters and hackers. If someone gets their hands on your account and steals your currencies, there is not much you can do.

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Hacking is a big threat to cryptocurrencies because the trade in cryptos occurs online. Crypto investors are required to use non-traditional custodians who do not have the security track records as those of traditional custodians like Fidelity and Vanguard. If you put all your money into one account, you could land up losing everything in the process.    

Invest What You Have

Students are often impulsive and will make rash decisions like take out loans to invest in crypto. In most cases, they are inexperienced and when someone is good enough at selling them something, they will jump headfirst into the fire. With crypto, it is no different and students need to be mindful of the risks involved.

Study debt is no joke, but when you add a personal loan on top of that, it could get even worse. Crypto is not a get-rich-quick scheme. It should be well-researched before climbing in and then it should only be done with money you already have.

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Conclusion

If ever there was a time to invest in crypto, it is now. The financial world is starting to accept its legitimacy and it is gaining speed. However, as a student, it would be wise to do your due diligence to have a better idea of what they can expect and what they need to do and avoid.

Author Bio:

Judy Nelson works for a marketing agency as the lead PR and online marketing consultant and helps new brands gain ground in the market. She has some great writing skills as well and freelances as a management and technology writer for a leading essay writing service. In her free time, she loves finance magazines, volunteers for social causes, and plays board games.

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Cryptocurrency

This Is What Jack Dorsey’s Cryptic ‘705742’ Tweet Might Mean

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A simple but cryptic tweet from Jack Dorsey, Founder and CEO of Twitter and payments firm Square, has sparked a debate about the meaning of the post, and whether the well-known Bitcoin (BTC) advocate has any BTC-related plans that have yet to be announced.

As pointed out by many users replying to the thread, the tweet, saying just “705742,” likely refers to a block number on the Bitcoin blockchain. A block with that number was indeed mined on Tuesday at 20:14 UTC, but it is still unknown what else is special about the particular block.

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Twitter users were quick to pull up the bitcoin block explorer to see if there was anything unusual about block 705742, which at that point had yet to be mined. However, little out of the ordinary could be found.

Others, meanwhile, joked that the number could be Dorsey’s “[end of year] price target for bitcoin,” or that it could be somehow related to “Moscow time,” – bitcoin slang for the value of 1 USD in satoshis.

Speculating further, one user on Reddit suggested that the block number could be the first block to be mined by a new mining system that Dorsey has proposed.

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“Maybe the first block that Square mined as part of their [research & development] for a potential public mining platform,” the user wrote, before adding that it looks like the wallet that received the block reward already has both in and outbound transactions worth almost USD 2bn. “Seems like a plausible volume for Square/Cashapp,” the user added.

However, according to various Bitcoin blockchain explorers, the block in question included 2,787 transactions and was actually mined by the BTC.com pool. Moreover, the block was mined almost an hour after the tweet was published.

In either case, as reported, the latest tweet from the Twitter CEO followed another thread from last Friday, where Dorsey said that Square is considering building “a bitcoin mining system based on custom silicon and open source.” 

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“Mining needs to be more distributed” and it “should be as easy as plugging a rig into a power source,” Dorsey wrote, asking his followers what the biggest barriers are for people who want to run miners.

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Facebook Finally Launches Digital Currency Wallet Novi but Senators Want to Close This Project

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Amid the Facebook Novi launch, some federal legislators want the social media giant to discontinue the project.

Facebook Inc (NASDAQ: FB) has launched the pilot phase of its digital currency wallet Novi in the US and Guatemala using stablecoin Paxos. Facebook finally launches Novi and is going with Paxos’ USDP after its own native crypto Diem failed to secure regulatory approval. Furthermore, the social media giant heralded the pilot launch in a blog post on Tuesday.

Novi’s pilot launch is more than two years after it was first announced. The wallet will facilitate fast, secure, and free fund transfers between users via mobile smartphone apps. However, all users must register with government-issued identification.

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For now, Paxos’ stablecoin will serve as Novi’s transactional currency, while powerhouse exchange Coinbase will provide custodial services. According to David Marcus, head of Facebook’s Novi wallet, this pilot phase will, “test core feature functions, and operational capabilities in customer care and compliance.” Furthermore, it will test the viability of stablecoins as a valid and sustainable form of payment.

Facebook Launches Novi to the Disapproval of US Congress

Amid the Facebook Novi launch, some federal legislators are calling for the social media giant to discontinue the project. Senate Democrats addressed a letter to Facebook CEO Mark Zuckerberg on Tuesday questioning the company’s credibility with crypto. In their own words, Facebook “cannot be trusted to manage cryptocurrency”. The senators base this conviction on the social media company’s past inadequacies in handling cyber risks and keeping consumers protected. Signed by Senators Brian Schatz, Sherrod Brown, Elizabeth Warren, and others, the letter read:

“Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape — not only for Diem specifically, but also for stablecoins in general.”

Part of the Congress letter to Facebook further states:

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“We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.”

Facebook responded to the Senators’ query through a spokesperson for Novi, suggesting that the company would address the issues raised therein.

Facebook Has a Long-Running History with Federal Lawmakers over Its Operational Practices

In recent times, Zuckerberg and Facebook have locked horns more frequently with Congress. Back in 2019, Congress summoned the Facebook CEO to provide testimony on the Diem project (then called Libra). Zuckerberg’s summoning was the culmination of weeks of tussling, between Facebook and the federal lawmakers, who were skeptical of the project. In addition, the Zuckerberg hearing came just a year after Facebook’s Cambridge Analytica scandal. This may have been another reason federal legislators were agitated against the company.

Another recent red flag raised against Facebook was earlier this month from whistleblower Frances Haugen. Haugen appeared before the Senate Commerce Committee to testify on the threat Facebook posed to users. Some of these include the usage of Facebook itself and other affiliated services, such as photo and video-sharing behemoth Instagram.

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Australian Parliamentary Committee Sets Guidelines to Give Crypto Industry a Big Push

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Australia’s parliamentary committee on crypto-assets aims to bring concrete regulatory and policy changes to give a major push to the crypto industry in the country. The committee believes Australia needs a robust policy and regulatory changes to help it compete against the global leaders. The said committee released a draft report on 20th October outlining the need for encouraging investors and ensuring protection against frauds.

Some of the key recommendations in the draft report include,

  • Establishing a market licensing regime for Digital Currency Exchanges, including capital adequacy, auditing, and responsible person tests under the Treasury portfolio
  • Establishing a custody or depository regime for digital assets with minimum standards under the Treasury portfolio
  • Conducting a token mapping exercise to determine the best way to characterize the various types of digital asset tokens in Australia

Andrew Bragg, a senator from the conservative Liberal Party and chair of the committee said that the recommendations in the draft would help Australia set a new regulatory framework for the highly popular crypto industry which will, in turn, help Australia compete against the likes of Singapore and UK. He said,

“The draft recommendations are a big push to detail a cryptocurrency framework for Australia, which would allow us to compete with the U.K. and Singapore,”

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Crypto Market Has Become Too Big to Ignore

The Crypto market was primarily seen as a speculative ecosystem for the most past of its life, but that perception has changed quite fast over the past year. Governments have now realized that the crypto market has become too big to ignore as a fad. This is why the likes of El Salvador have made Bitcoin a legal tender, while Paraguay passed a law to legalize the use of Bitcoin and Ethereum in the financial market.

The United States’s policymakers who were adamant about keeping the crypto market at bay have finally approved the first-ever Bitcoin Futures ETF. This shows how the sentiment around the crypto market has changed as it became a $2.5 trillion industry again in October.

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