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Bankruptcy

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Written by   260
4 months ago

The report is based on the materials of the interview with a cryptocurrency investor named "Maxim" and uses his own data.

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On March 11, 2017, the bitcoin rate was $1,290 (about RUB 69,000). By May 27, 2017, the rate had grown tenfold, reaching $12,800 (about RUB 810,000). The price has been growing since then and on June 5 it exceeded $19,000. During these four months, the price increased by 400%! On May 25-27 alone, it jumped by about 50%. Over the same four months, Maxim's income grew by only 15-20%. As of June 2017, the income from cryptocurrency is several times higher than from ordinary work.

The report notes that in order to avoid going bankrupt a person should start earning cryptocurrency at the time when it costs $1,000-$3,000. Otherwise it would be too late: cryptocurrency will be more expensive while payment is calculated in fiat money. A person who bought bitcoin then went bankrupt when the cost of one bitcoin exceeded his monthly salary.

In this situation, standard loans are not advisable as they are secured by collateral and collapse under cyber-risks. In case of bankruptcy the debtor loses the property he has mortgaged. However, the creditor will receive nothing if cryptocurrencies are seized – they do not exist physically and tend to be anonymous. This is an example of debt secured by cyber-assets rather than by collateral.

In the cryptocurrency discussion, there is a lot to say. But in this article, I would like to ask a simple question: does the circulation of cryptocurrencies have a negative effect on the wealth of people? In my view, the answer to this question is yes.

The mainstream media has been known to sensationalize and hype every new cryptocurrency. This long overdue crash is long overdue, and we should be glad that it finally took place.

Cryptocurrencies are a good thing in a lot of ways. It can help people who can not access or do not have access to traditional banking services. It can be used as a store of value and transfer of value instead of a just a currency and currency.

Cryptocurrencies are also highly volatile and risky and not suitable for the vast majority of investors; these assets have grown significantly over the last few years and can cause significant losses for inexperienced investors.

What has been missing is the education for the average investor how to properly invest in cryptocurrencies. The mainstream media has misled many investors into believing that investing in cryptocurrencies is easy and their returns are high, this is simply not true.

This recent Bitcoin crash is a good thing because it's going to bring attention to this new asset class, and hopefully we will educate investors on how to invest in these assets while protecting their assets from significant losses.

To my wonderful and extreme subscribers, inspiring readers, commentator, upvoters and also my generous sponsors . Thank you all so much for been there, from the bottom of my heart I say thank you. Adereign cares.

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Written by   260
4 months ago
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