Bitcoin & Cryptocurrencies
2018 started on a great note as my Money Monday series continues with Dineo Ranaka and Lerato Kganyago on Metro FM. The topic at hand was “Bitcoin & Cryptocurrencies” and below is a summary of the 10 minute conversation:
Cryptocurrency is a Digital asset that works as a form of exchange using blockchain (self-auditing system that allows digital information to be distributed and not copied). Blockchain can be seen as a peer to peer network that validates record or “blocks” secured using cryptography. Bitcoin is a the most popular type of cryptocurrency that has taken the world by storm and is currently estimated at around R194 700 – 199 000 per Bitcoin.
The creator of Bitcoin is unknown but is referred to by a pseudo name “Satoshi Nakamoto”. He, she or they created Bitcoin in 2009 with the aim of bypassing the control of banks and to dominate the financial system. With over 16 million Bitcoins currently floating, the Bitcoin protocol allows for only 21 million Bitcoins to be mined. Fortunately Bitcoin can be mined until 2140, therefore, it’s seen as a more long term type of investment.
Many may say that the puffery of Bitcoin is governed by hyperinflation. In 2010 the first known transaction was made when someone paid for 2 pizzas worth $25 using 10 000 Bitcoins. Today those very same Bitcoins are worth of $100 million collectively.
Due to the nature of cryptocurrencies, it’s imperative to know the pro’s and con’s before investing in them. Below are two advantages and disadvantages of Bitcoins:
- Cons: prone to hackers- irreversible
- Cons: limited transactions- very few places accept Bitcoins
- Pros: easily accessible- mobile payments
- Pros: make a lot of money- continue to increase in value
We will be offering a FREE seminar on Bitcoin in Johannesburg and Umhlanga KZN within the coming weeks. For a ticket to this event please contact the Bear Run Investments team.
Johannesburg Workshop Details:
• Date: 31 January 2018 (Wednesday)
• Time: 18h00 – 19h30
• Venue: Spaces Building, Design Quarter, Leslie Avenue, Fourways (just off William Nicol), Gauteng
Call our Fourways office on: (011) 513-3108 or send an email to: email@example.com
Umhlanga Workshop Details:
• Date: 10 February 2018 (Saturday)
• Time: 11h00 – 13h00
• Venue: Spaces Building, 2 Ncondo Place, Ridgeside, Umhlanga Rocks, KwaZulu Natal.
Call our Umhlanga office on: (031) 571-0760 or send an email to: firstname.lastname@example.org