Cryptocurrency Investing

             I recently became more interested in the topic of crytpocurrency, like many people in America, after the recent Bitcoin bubble. One thing I've discovered while watching this market is that it is a very unpredictable roller-coaster ride of an investment. If you're not able to trust that your decision to invest is a wise one, I'd strongly discourage your investing in this new commodity. Those who are stacking up this "currency" right now are people who whole-heartedly believe that it is going to revolutionize the financial landscape across the globe. If your not willing to take on a big risk of losing everything you invest after a flop, then I would avoid gambling on it. However, if you like to take risks and you have a little change to throw at it, I will go ahead and give you a quick run down of what I know and why I feel that it may actually be a very good long-term investment for young people.
           The idea behind cryptocurrencies is to create a payment system that is not controlled by a central banking authority or a government. As you can imagine, this is a very popular idea among people whose domestic currency is rather weak or volatile in relation to other currencies. South Korea seems to love this stuff and can't buy enough of it. The average price of these currencies in South Korea actually raises the overall global average. Now, that being said, if you plan to invest in these currencies, you better hope that South Korea's government doesn't plan to do something to stop this craze. If they happen to ban it, the market price would drop significantly. This could create a good entry opportunity for people who don't want to pay the high prices we have today, but it could also lose a lot of current investors a big chunk of their net worth.
            I'll say again, that if you are the type of person who likes to take a risk, this is still a good investment opportunity. I would not advise someone who is already low on cash to invest in something so volatile. You really need to be financially stable and have some extra money to actually "invest" rather than use to hope you make a quick buck while jeopardizing your liquidity. If you're confused by that word, it's a fancy way to say how much cash you have or could have easily available if needed. Trying to get rich quick while already living paycheck to paycheck is typically a bad idea. Some have gotten lucky and pulled it off, but I would definitely say don't try it. You must be able to afford to lose your entire initial investment and still be okay. That is the way to invest in something that is still such a speculative item. I have done a little research on some of the currencies and what they do and their purpose. I will name a few here to keep an eye on just in case you're interested in buying in and I will also leave some links to articles that both vouch for investing in it and warn about avoiding it. This way you are able to get a very well-rounded look at all the risks involved.
           The first cryptocurrency is obviously the king of the crytpo world, Bitcoin. Bitcoin was created in 2009 and remained relatively inexpensive throughout it's existence with an exception in 2014 during a previous speculative bubble where demand rapidly increased. It did not hold and the price eventually plummeted back down rapidly and limped along for another few years until 2017. Last year, Bitcoin went main stream and everyone had to get their hands on some. Coinbase also brought it into the pockets of millions with easy access to Bitcoin as well as Litecoin and Ethereum. Bitcoin was meant to be a peer-to-peer payment system. However, it basically has become much like a stock or commodity investment and is only accepted by a small number of merchants worldwide right now. That could change in the near future, but only time will tell. China is already very involved in mobile payments through their WeChat app. This app is similar to Facebook. However, I don't see actual Bitcoin or other cryptocurrencies catching on yet. The technology is rapidly changing and improving, so this could also change.
          Another large cryptocurrency that I've researched is Ripple, or XRP, as the token is called. This company is attempting to work with large lending institutions to implement a blockchain payment system that they can use to send international money transfers very quickly and inexpensively. The company has an excellent idea and has come up with an excellent token. However, if you're looking for the currency that is not controlled by central banks or a government regulation, this is not it. They will ultimately be regulated and may be eventually used like a digital currency by banks. Still a good one to keep an eye on in case it goes main stream for payments and demand skyrockets.
          The last one I want to mention is my "sleeper" coin. It is called Digibyte. No one is saying much about it at this point, but basically this is Bitcoin in hyper speed. It can process a large number of transactions per second more than Bitcoin and uses multiple algorithms to "mine" coins. This is important because it provides the user with more security and a faster payment process because coins must be "mined" by a "miner" who is helping run the payment system. The more algorithms and security, the safer and faster your transaction will be. Digibyte also has other ventures including Digusign, a remote document-signing system that uses the blockchain to send documents. Their website also mentions IoT, which stands for Internet of Things. This is a very exciting technology that would basically use the internet to run cities or just about anything. The very light bulb you put in your bedside lamp can already be hooked up to the internet through a lot of new security systems. This is the Internet of Things already at work. Digibyte seems like a company that is setting themselves up to have multiple sources of revenue through blockchain technology. Keep an eye on this one for sure. 
         That is all I have for you for now on cryptocurrencies. I'll keep doing some research and may even cover more coins in the future. Feel free to shoot me an email with any questions or coins that you may want me to discuss in the future. This is a very exciting new technology and we are just scratching the surface of what it can do. I am very interested in learning all I can get my hands on about it, and you should be too. Thanks for taking the time to read this entry and I hope to hear from you! Check out the links below for two good reads with different points of view on cryptocurrency investing. Thanks!

30% Of Millennials Would Rather Invest In Cryptocurrency: Here Are 3 Tips To Help You Do It Smarter
Here's Why Warren Buffett Swears He'll Never Invest in Bitcoin