Striplv Magazine - The Sexiest Magazine on the Planet, Issue 0318

Issue link:

Contents of this Issue


Page 38 of 79

charge when you cash in your Cryptocurrencies for Dollars or Euros. Additionally, most mining groups will either charge a small 1% support fee or ask for a small donation from the people who join their groups. In the end, while there are nominal costs to use Cryptocurrencies, the transaction fees, and mining group donations are much cheaper than monthly conventional banking or wire transfer fees. How do I turn Bitcoins and other Cryptocurrencies to Cash? You can exchange your Bitcoin for cash either online or in person. To exchange Bitcoin online, you have three options at your disposal: 1. Debit cards. There are multiple existing debit card programs. For a list of recommendations, visit 2. Trading with an online exchange. Some of the more popular ones include Coinbase (, Cex-Io ( and Kraken ( In January, CashApp by Square began processing Bitcoins. 3. Directly trading with another person. To sell Bitcoins in person, all you have to do is scan a QR code on another person’s smartphone in exchange for cash and the transaction is complete. Security Concerns and Cryptocurrency Abuse Cryptocurrencies are just as secure as physically holding a precious metal is. Even though they do not physically exist, in many ways having a Cryptocurrency is like having a satchel of gold – and if a person takes the proper precautions, he or she will be safe from having their personal accumulation stolen. As mentioned earlier, your wallet can be stored online through a cloud service or offline on a hard drive or a USB stick. The offline method is much more secure and is recommended to anyone who owns more than one Bitcoin. But, remember, wherever it is stored is not without risk. More than a potential hacker intrusion, the real risk with Cryptocurrencies and Bitcoins in particular concerns not having your wallet backed up with a fail-safe copy. There is an important .dat file that is updated every time Bitcoins are sent or received. This .dat file should be backed up every day Bitcoin transactions are conducted. In addition to standard security concerns, those who own and trade Cryptocurrencies should show caution for other issues too. For example, there are currently three known ways that Cryptocurrencies can be abused. 1. Technical weaknesses. Because of a time delay during transaction confirmations, in some rare instances, Bitcoins and other Cryptocurrencies can actually be issued twice. Since Bitcoins are sent peer-to-peer, it takes several seconds for a transaction to be confirmed across the P2P network. It is during these few seconds that someone who uses a fast clicking process can submit a second payment of the same amount to a different recipient. While the system will ultimately catch the double-spender and reverse the second transaction, if the second recipient transfers goods to the buyer before they receive confirmation, then that second recipient will lose both the goods and the payment. 2. Deceit. Because Bitcoin mining is best achieved when joining a group of thousands of other miners, the organizers of each group get the advantage of deciding how to divide any Bitcoins that are found. Bitcoin mining group organizers can deceive their group members by taking more Bitcoins for themselves. 3. Mismanagement of online exchanges. Those who manage unregulated online Cryptocurrency exchanges that trade for cash can be incompetent or dishonest. This is the same as when Freddie Mac and Fannie Mae investment banks went under because of incompetence and lack of integrity. The only difference is that conventional banking losses are partially insured for the bank customers, while Bitcoin and other Cryptocurrency exchanges have no insurance coverage at all. The biggest example of this was the 2014 collapse of the Mt. Gox Bitcoin exchange service. Located in Tokyo, Japan and launched in 2010, when Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection in February 2014 it was the largest Bitcoin intermediary and the world’s leading exchange handling more than 70% of all transactions worldwide. At the time it was estimated that 850,000 customer and company Bitcoins valued at more than $450 million were missing, most likely stolen. For all intents and purposes Mt. Gox had a large bank with no security guards, and it paid the price. What do the Billionaires say? If something is “virtual,” does it really exist? When it comes to Bitcoin and other Cryptocurrencies, this is an important question. You can buy and sell stocks, bonds, paper currencies and commodities like corn and wheat. They exist in the real world. You can physically deliver them, although they mostly are represented in electronic form. Although anyone can speculate on conventional investments like stocks and precious metals, it’s important to know what Bitcoin is not. Anyone is free to speculate on anything from land to football games. It’s human nature. Yet don’t confuse a Cryptocurrency with something you can hold in your hand – like gold. And for every positive thing about Bitcoin, there seem to be negative things too. Here are what some of the world’s most insightful millionaires and billionaires have to say about Bitcoin, Blockchain, and Cryptocurrencies. Sir Richard Branson, Founder, Virgin Group “Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around Bitcoin. — People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too. If you take somewhere like Egypt, 90% of people have got houses, they’ve got a garden, but they’ve got no piece of paper to show ownership of that — And without ownership of your property, it’s almost impossible to start a business or get a bank loan or anything. Blockchain technology could create a real economic revolution in these countries. I do think Bitcoin is the first (encrypted money) that has the potential to do something like change the world.” Warren Buffet, CEO, Berkshire Hathaway “In terms of Cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. When it happens or how or anything else, I don’t know... If I could buy a five-year put on every one of the Cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth. We don’t own any; we’re not short any, we’ll never have a position in them.” Mark Cuban, Owner, Dallas Mavericks “It’s OK to invest up to 10% of your savings in high-risk investments, including Bitcoin and Ethereum. You’ve just got to pretend you’ve already lost your money. It’s like throwing ‘the Hail Mary.’ It’s still very much a gamble. It could go to $15,000 or zero and maybe both on the same day. If it’s money you need to depend on and can’t afford to lose, don’t do it. If you have money you can gamble with, then it’s worth taking a shot.” Bill Gates, Co-Founder, Microsoft “Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient. (It will) make moving money between countries easier and getting fees down pretty dramatically. But, Bitcoin won’t be the dominant system... We need things that draw on the revolution of Bitcoin, but Bitcoin alone is not good enough.” Elon Musk, CEO, Space X and Tesla “I think Bitcoin is probably a good thing. I think it’s primarily going to be a means of doing illegal transactions – But that’s not necessarily entirely bad. You know, some things maybe shouldn’t be illegal. It will be useful for legal and illegal transactions. Otherwise, it would have no value as a use for illegal transactions, because you have to have a legal to illegal bridge.” Kevin O’Leary, Co-Fonder, O’Leary Funds and SoftKey “The fact is, it is so unstable — volatility in both directions, it’s up, and it’s down — that nobody in a substantive transaction will take that risk. So it is a long way from being a currency. However, is it an asset? Yes. It is one of the most successful assets on the planet right now because it’s a global speculation. I have no idea what its value is, and neither does anybody else. The volatility makes it very difficult for me as an investor to put that into a portfolio. So to me, it is a speculation.”

Articles in this issue

view archives of STRIPLV0318 - striplvissue0318