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Here is guide to start your own cryptocurrency

Bitcoin is a cryptocurrency and worldwide payment system

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Bitcoin price, Bitcoin investment
Cryptocurrency Bitcoin, the growing market (VOA)
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Fed up of standing by watching while others make and lose fortunes on cryptocurrencies? Now you too can make and lose a fortune!

This columnist realised it was time to tackle this topic when a news report said more than 1,500 Bitcoin-like cryptocurrencies had been launched and a reader asked me for advice on starting his own.

Easy, I said. Whose head would you like to be on it? He chose his own, which showed me that he had no idea what a cryptocurrency was. They are not physical coins, so don’t have anyone’s heads on them.

Also Read: Is investing in Bitcoin safe? Get the basics first!

Never mind. Most people don’t understand these things. This is good.

Things you can sell to unsuspecting friends as Bitcoins: 1) game arcade tokens; 2) foreign coins; 3) toy medals; and 4) chocolate money.

But one of my more serious colleagues is starting his own cryptocurrency; so I know the system.

1. Download the main coin mining software from a website called Github, then hire a nerd, as you have to tweak the programme (with C++) to make it unique.

2. Think of a theme. It is impossible to be too wacky. For example, one person made a crypto-coin called “Offerings to Cthulhu”, named after an alien from a 1928 sci-fi story. You’d think that was too silly to work, but it is going strong after several years.

3. When people start buying your currency, sell them all and run away as fast as you can.

If the last part of this process reminds you of anything, it should. It is the same technique used by people working for criminal gangs (“banks”) for pushing evil scams such as sales of stocks and shares, unit trusts, investment bonds, Ponzi schemes, etc.

Also Read: Interesting facts you should know about Bitcoin, the cryptocurrency gold of 21st century

Bitcoin is a cryptocurrency and worldwide payment system.
Bitcoin is a cryptocurrency and worldwide payment system. Wikimedia Commons

It’s an exciting field. In January this year, the value of Bitcoins was going up and down so fast (in a $10,000 range) that you had to discuss it with a live price tracker in your hand. Here’s a typical conversation:

ME: “I’ll buy your car for one Bitcoin.” HIM: “No way! This car’s worth more than… $9,845.” ME: “More than… $11,245? No, it isn’t. That’s a good price.” HIM: “Okay, you got a deal.” ME: “I’m now transferring to you one Bitcoin.” HIM: “Wait. This is only worth… $7,231.” ME: “Too late, Byeee.” [Drives off.]

Bitcoin analysts say the number of new coin issues is accelerating so we’ll each have our own currency in “the mid-to-long-term future”, meaning a week next Tuesday. Shopping will be challenging.

Also Read: Status of Bitcoin in India

SHOPPER: “Do you accept Flurgles?” SHOPKEEPER: “Yes, but your change will be in Oogliewooglies.”

What to call your coin? All the cool names have already been taken, including Mysterium, Einsteinium and BitBean. Others are odd, like the Melon, or desperately unimaginative, like the Namecoin.

I reckon it’s time to stand out and get attention by using an ironically humorous name for your new Bitcoin. Four suggestions: 1) SweetLittleNothings; 2) Don’tBuyThese; 3) Moneypits; and 4) IdiotTokens.

Okay, hands up who’ll buy an IdiotToken from me? And no, you can’t pay me in crypto-coins. I want hard cash. I may be an idiot but I’m not stupid.

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Copyright 2018 NewsGram

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As Bitcoin Turns 10, Its Investors Face Year-On-Year Loss

Investors who bet early on bitcoin and have stuck with it have faced a roller-coaster ride in its first decade.

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virtual currencies, bitcoin, investors
Bitcoin.com buttons are seen displayed on the floor of the Consensus 2018 blockchain technology conference in New York City, New York. VOA

Bitcoin was heading towards a year-on-year loss on Wednesday, its 10th birthday, the first loss since last year’s bull market, when the original and biggest digital coin muscled its way to worldwide attention with months of frenzied buying.

By 1300 GMT, bitcoin was trading at $6,263 on the BitStamp exchange, leaving investors who had bought it on Halloween 2017 facing yearly losses of nearly 3 percent.

A year ago, bitcoin closed at $6,443.22 as it tore towards a record high of near $20,000, hit in December.

virtual currencies, bitcoin, investors
People use a bitcoin ATM in Hong Kong. VOA

That run, fueled by frenzied buying by retail investors from South Korea to the United States, pushed bitcoin to calendar-year gains of over 1,300 percent.

Ten years ago, Satoshi Nakamoto, bitcoin’s still-unidentified founder, released a white paper detailing the need for an online currency that could be used for payments without the involvement of a third party, such as a bank.

Traders and market participants said the Halloween milestone was inevitable, given losses of around 70 percent from bitcoin’s peak and the continuing but incomplete shift towards investment by mainstream financial firms.

virtual currencies, bitcoin, investors
Transactions in cryptocurrencies occur the same way that you make transactions using any other fiat currency. pixabay

“The value mechanisms of crypto and bitcoin today are based more on underlying tech than hype and FOMO (fear of missing out),” said Josh Bramley, head trader at crypto wealth management firm Blockstars.

Growing use of blockchain – the distributed ledger technology that underpins bitcoin – is now powering valuations of the digital currency, he said, cautioning that some expectations for widespread use have not yet materialized.

Others said improvements to infrastructure such as custody services may allow mainstream investors who are wary of buying bitcoin to take positions.

virtual currencies, bitcoin, investors
Bitcoin is a cryptocurrency and worldwide payment system. Wikimedia Commons

“We see behind closed doors financial and non-financial institutions beavering away to create the infrastructure,” said Ben Sebley, head of brokerage at NKB Group, a blockchain advisory and investment firm.

Bitcoin has endured year-on-year losses before, according to data from CryptoCompare, most recently in 2015.

Also Read: Climate Change Efforts Can Be Nullified Due To Bitcoin Production: Scientists

Retail investors still account for a strong proportion of trading, market players said.

Investors who bet early on bitcoin and have stuck with it have faced a roller-coaster ride in its first decade. Many told Reuters they are optimistic that they are still onto a winner. (VOA)