Tag Archive | how to buy cryptocurrencies

Why You Should Crypto

It didn’t take much thought for me to realize what changed between my initial crypto purchases and the more recent ones that turned me into a Cryptocurrency evangelist: Porcfest. By sheer coincidence, I happened to have my laptop with me, which gave me access to my meager amounts of crypto, but the drive had also been damaged in the drive, so I wasn’t actually able to use them (and will never be able to recover them). But I saw there something I didn’t expect: cryptos in use as currencies.

Since, I’ve been paying more attention to that, and I’ve noticed that we are not far from the threshold of widespread crypto acceptance. In Keene (to where I’m soon moving), many brick-and-mortar businesses accept it, for example. This all caused me to really consider them as viable currencies–ones that will ultimately shatter state power over us.

So why should you begin moving money into Cryptocurrency? There are many reasons, but let’s start with the obvious.

Profits

Are profits guaranteed? Of course not. Nothing is ever certain. But the indestructible and immutable nature of cryptos means that the wealth can’t be destroyed by any government or any coalition of governments. The internet unleashed a power that we haven’t really begun to harness, but one thing has been repeatedly made clear: the governments of the world can’t stop anything on the internet. Scientific research papers leaked and given away for free, software, The Pirate Bay–which is centralized and has been repeatedly and directly attacked by governments–continues to stand, undefeated. It has become a hydra, they learned; cutting off the head caused thousands of copies to spring up (of varying legitimacy). Now there is LBRY (tell me before you join, and I’ll send you an invite, so we both receive 3 LBRY credits, valued at 22 cents per presently), which is like a decentralized world wide web. It’s like Tor, except it has a built-in currency that rewards contributions. In all their efforts, the state never took down the Tor version of The Pirate Bay, because they can’t. Not without shutting down the entire internet, which would cause instant revolt. Ditto for cryptocurrencies.

So your wealth is imminently safe, as long as you don’t make stupid decisions. The government can’t and won’t bail you out if you buy Scamcoin. And while there’s no guarantee of short or mid-term profits, one is virtually guaranteed long-term profits.

Cryptos Inflate

Contrary to much confusion, almost all cryptocurrencies are inherently inflationary–to a point. This is because they are Proof of Work based (It’s not really important to know what that means), which means miners that verify transactions are rewarded for their intensive calculations by spontaneously-created coins. Each transaction, therefore, increases by some small degree the total number of coins in circulation. This is verbatim inflation, as no new wealth is created–only new tokens spread across the same amount of wealth.

However, people are adding value to cryptos in the form of Demand. As long as this demand, represented by people purchasing cryptos, is higher than the rate of inflation, the value of the coins increases. Say one new coin is created each day. This would make everyone’s currency less valuable unless people out there wanted to buy more than one coin each day. If people want to buy ten coins each day, then values will increase despite the inflation. That’s a bit simplistic, but the reason it works is that prices and values are generated dynamically by all these factors, not by a central authority making educated guesses.

However, each new block (basically, a set of transactions) involves a lot of complicated calculations, and these calculations are steadily becoming more difficult in labor-intensive. Additionally, hard-written into many of these currencies is a soft limit and a hard limit. As more coins are created, the number of coins created spontaneously by miners decreases, which obviously slows the rate of inflation. This decrease in supply increase means the Demand and Supply ratios change, allowing Demand to further overtake Supply. What happens then? Value increases exponentially. Once the hard cap is reached, there is no more inflation, so Demand causes even further value increases. This, of course, is years away for most currencies. Technically, they may never hit the hard cap for the same reason humans are unlikely to ever drill 100% of the oil on the planet–eventually it stops being cost effective to drill (or “mine”).

No one can predict what will happen around that time, but I expect that Bitcoin, like Blackcoin is and Ethereum is doing, will move to Proof of Stake. But given that Bitcoin can’t go through with a plan that nearly everyone signed, maybe such a shift is beyond its capabilities. Anyway, crypto values increase because more people are acquiring them with other money (work) than there are people spending them. Growth appears to be exponential, as well; Bitcoin took years to get to $600, but just a few months to go from $600 to $3,000.

Anti-War?

If you’re against war, then the best course of action is to begin defunding the war machine by diverting money from USD to cryptos. There is a strong libertarian and anarchist ideological dominance among cryptocurrencies, and it’s by design that they’re resistant to hacking, theft, corruption, spying, and centralization. Use of HD wallets such as Jaxx and Coinomi allow no one else to know how much you actually have, because “you” to outside observers are dozens or hundreds of random strings of characters, which are linked to one another only by the software itself and the local copies of your private keys. No one but your software can tie your many wallets together.

The Cusp of Change

It should be clear to anyone who has been paying attention to national and world events that we are on the cusp of change, and that changes have been happening for twenty years at a quickening pace. When personal computers first made their way into the home, it was revolutionary. Then there was the modem, which was revolutionary. Then the smartphone, which was revolutionary. Then torrenting (actually, BitTorrent came before smartphones, but it doesn’t matter), which allowed every single computer on the Internet to be a server. Then came the blockchain, a remarkable innovation the full scope of which I, a tech person, cannot fully grasp. It’s like the General Relativity of technology–yes, it’s that serious.

Imagine you have a spreadsheet that two or three people can work on. That’s a bit of a problem, isn’t it? Being a tech person, I know this problem well. Clients tend to throw the spreadsheet onto a shared drive and, oops, it turns out to be locked by another user who left it open. Different versions come into existence, one person overwrites another person’s data accidentally, someone’s computer crashes and there’s now an Auto-Saved version and no one is sure which is the correct and most recent… Take it from someone who has no less than thirty copies of Dancing in Hellfire on her harddrive–it’s a real problem.

The blockchain is like a spreadsheet that everyone shares, while it also solves the version difference problems. Imagine what this will ultimately mean. Take democratic elections, for example. The government should be at the forefront of this, because blockchain could be used to record votes. The data, the calculations are complete and stored in a block, is immutable and unhackable. It will remain in that block untouched until the end of human technology. It’s called a “chain” because each block points to the block in front of it and the one behind it–like if one spreadsheet ended 00003 and the next one began 00003, which ended in 00004 while the next one began 00004, only the “numbers” are much more complicated. So it’s a chain of these spreadsheets, really, and, once stored, they cannot be changed. This is what causes “hard forks” to happen. When a change is made to the protocol and technology, it creates a distinctly new thing–that “change” doesn’t apply to older blocks before the change, and it never will, because those blocks cannot be changed.

So if your vote is in 00003, it’s there forever–no changes to the vote process or anything else can ever change your vote. It’s permanent, immutable, fixed, and safe. And this is just one such application. There are countless others. One company is using blockchain technology to verify that all fish are safe or something like that. Another is using blockchain to monitor for ebola in realtime. The underlying technology that is the blockchain is the greatest breakthrough in technology since the invention of the Internet itself, and we’re still trying to fully incorporate the Internet, thirty years later.

Golem uses blockchain technology to share computing power for 3D rendering software Blender. I hate Blender. But it’s a proof of concept, especially for complex animations. Imagine being able to use five thousand processors all at once to compile your animation–Golem is making that happen, and Blender usage is its proof of concept. What further uses will we see this put toward? Password cracking? Probably–and hopefully, since that’s my only hope for getting into my encrypted backups that contain, I believe, a number of Litecoins (perhaps as many as ten, but I don’t recall, because I wasn’t really into it then, because I hadn’t seen… the proof of concept at Porcfest).

The world is changing. All throughout the world, people are deciding that they don’t want to be ruled by others, and, yes, this is even happening in the United States. The only thing holding us in our current system is our addiction to ruling over others. California won’t secede from the union because they are too eager to have the power once more, they are too eager to get a Democrat in the White House in 2020 and “make the Republicans pay” for four years of Trump. It is true that they don’t want to be ruled over by Trump and a Republican-controlled federal government, but they won’t secede, and they won’t demand decreases in state power, because they’d rather bide their time until they are, once more, the ones with the power, and can then make the GOP pay for the years of President Trump. Conservative states did the same with President Obama–that’s why we have Trump now, in fact.

We saw it with Brexit. We see it with Kurdistan, Catalonia. We are slowly reawakening to the reality that we don’t like being told what to do by governments who aren’t us and who don’t have our best interests at heart. Meanwhile, the American behemothian military machine is weakening, losing its grip, with its only hope of survival being continuous warfare–warfare that Americans (and the rest of the world) are losing their patience for. The USD will inevitably collapse (the national debt is already beyond twenty trillion dollars), and some politicians are floating the idea of making the raising of the debt ceiling an automatic process. That’s not much different from how it currently is, since the whole “Will they or won’t they?” question is a dog and pony show, but once that is erased, hyperinflation will quickly follow. And if the Democrats succeed in a national, socialized medicine scheme, that hyperinflation will be immediately necessary to pay those costs, because no American is going to submit to 80% taxes.

We live in interesting times. The state’s power is slipping away from it, and it can do nothing to stop it, because we aren’t fighting it with guns and tanks. We’re fighting it with ingenuity, creativity, and brilliance. We are, as the market always does, working around the state and its unlawful, immoral impositions. Anyone who has noticed the strange trends of the last several years should probably be investing in four things: themselves, gold, cryptos, and lead. The Age of the State is coming to an end.

Okay, I’m In. Now What?

The easiest way to transfer your wealth from United States Dollars into cryptocurrencies is via Coinbase. Some people have problems with them; I don’t. The people who dislike Coinbase are angry primarily because Coinbase, like all exchanges, keeps people’s private keys for themselves, so the user never actually owns the money in the wallet. It’s complicated, and we’re getting to that.

Think of a wallet (also called a “ledger”) as a bank account. It serves exactly the same purpose. It is a unique identifier that you, and only you, have, and comes in three parts: the public key, the private key, and the address. This is where the “crypto” part of “cryptocurrencies” comes in–encryption is heavy here. Every encryption has two pieces, the private and public key. Having the public key allows people to see the balance of the ledger and the transaction history, but they cannot send funds out of that wallet. It is the private key that is necessary for that. Coinbase and other Exchanges (places to buy cryptocurrencies) keep the private keys on servers, and you sign up to them with email addresses and stuff, and they match your email address and other information to the private key.

So you’ll need to create an account at an exchange like Coinbase. From there, you can use a checking account or debit card (some states prohibited, because fuck freedom, that’s why) to buy cryptos. Coinbase offers only Bitcoin, Litecoin, and Ethereum, but I’d still recommend using them primarily. It’s easy to get mixed up in a bunch of scamcoins otherwise. Coinbase locks in the value of your coins at the time you make the purchase, so if Ethereum is $300 each when you make a purchase of “1 ETH for $300,” it won’t matter if Ethereum has gone up to $900 when the purchase completes 5 to 7 days later–you’ll still get 1 Ethereum, not 0.33 ETH. This is a big deal. Be wary of exchanges that do not do this. Some of them will give you just 0.33 ETH, since that would be what $300 would get at the time the purchase completed. This also goes both ways–if ETH drops to $100 by the time the purchase completes, you’ll only get 1 Ethereum, not 3.

All of this is totally legal, and simple to do. Just go to Coinbase and sign up, link a checking account (the only option in many U.S. states), and start buying.

Once your coins arrive, though, you won’t want to keep them in your Coinbase wallet. Note that you can also use the Coinbase Android (iOS perhaps?) app. In fact, I don’t think I’ve ever actually been to Coinbase’s website. With Coinbase, you don’t truly own your money, just like you don’t truly own your money when it’s in a bank account. Especially in the EU, the bank owns it, and legislation gave banks in the UK the “right” to take up to 35% of the money out of anyone’s accounts at any time. So yes, exchange wallets are very much like bank accounts. However, most exchanges won’t allow you to buy crypto and automatically deposit it into another wallet; you’ll have to have it deposited into your exchange wallet.

I would recommend Jaxx or Coinomi. I use Jaxx primarily, and Coinomi only for more obscure coins like LBRY and Blackcoin. For Bitcoin, Ethereum, Litecoin, DASH, Golem, and Ethereum Classic, I use Jaxx. Install the Jaxx application on PC or Android, open it, and copy your wallet address. Jaxx puts a “copy” button right by your address to make this easier. Go back to Coinbase, choose the “Send” option, paste your Jaxx Wallet address into the “To” field, choose the amount you want to send (almost all of it, minus about 0.001 or so, to pay for the transaction fee), and confirm it. A minute or so later, your funds will show up in your Jaxx wallet, where you and only you control it.

It’s really that simple. It used to be a lot more complicated. My first Bitcoin purchase was for a client who had been hit with ransomware. I ended up sending $548 through Western Union to freaking Tel-Aviv. It was an ordeal. It took an entire day to get that one Bitcoin. It’s no longer anything like, but that’s part of why there’s the delay in Coinbase. It’s all about liquidity, after all–in the grand scheme of things, if you want to buy, then you have to find someone willing to sell, right? Coinbase cuts out that labor by acting as the middleman. People sell their coins to Coinbase (more or less), which has given Coinbase a nice cache of them. But yes, that’s really all there is to it. Exchanges have made the process so much easier than it used to be.

If you do want a riskier, more obscure coin (if you’re operating under the idea that any given crypto could shoot its way up to $50, so getting 100 of a currency for $0.15 is a great idea), you can instead use the Coinomi app instead of Jaxx. Jaxx and Coinomi both include a feature called Shapeshift (which is an unrelated, independent company) that, for a small fee (usually it’s a small fee, but nothing involving Bitcoin has a small fee anymore), will allow you to turn your Litecoin into Dogecoin or DASH or Ethereum Classic. Coinomi has more options, such as Belacoin, LBRY, and Blackcoin. So, to do this, here would be the basic steps:

  1. Create account at Coinbase, link a checking account (probably, unless you’re in one of the few states that will let you use a debit or credit card, you lucky devil).
  2. Purchase some amount of Bitcoin, Litecoin, or Ethereum. Litecoin has the lowest transaction fees right now.
  3. Wait for the purchase to complete. 4 to 8 days later, your coins will be deposited into your Coinbase wallet.
  4. Immediately send them to your Jaxx or Coinomi wallet. This will involve a small fee.
  5. Hit the fox head-looking thing. It will show you the maximum number of coins you can shapeshift, and will allow you to choose which currency you want to shapeshift them too. This will involve a small fee.
  6. The Shapeshift will automatically send your new coins to the corresponding wallet in whatever software you’re using. If you shapeshift Litecoin into Dogecoin using Jaxx (for some ungodly reason), it will automatically send the Dogecoin to your Jaxx Dogecoin wallet.
  7. Hold onto the currency until you’re ready to spend it or sell it.
  8. Selling it is basically these steps in reverse–convert it back into LTC, ETH, or BTC (be mindful of the relative values of these currencies! If Blackcoin goes up to $1 apiece but Bitcoin has gone up to $500,000, then Blackcoin relative to BTC will have gone down in value, even if it’s technically worth more in USD). Send the currency to the Coinbase wallet, and hit the Sell button.

So good luck out there. The state is going to come down. Bruh, do you crypto?