Cryptocurrency Beginners Guide For The Philippines.: If you like me, you possibly have a lot of unanswered questions about bitcoin and cryptocurrency well fear not. Over the last several years I have been studying this subject from many different perspectives.
My aim here today is not to tell you if cryptocurrency is good or bad or even if you should or shouldn’t invest. My objective is to share with you my knowledge and information that has been gathered over the last several years and provide you with leading statistics and material from professional bodies so you are in a better place to make a conclusion if one is needed. so, with that being said let’s dive straight in and find out the details
Cryptocurrency Beginners Guide For The Philippines
What Is Bitcoin Philippines?
Bitcoin is the original and biggest cryptocurrency. Before we find out what bitcoin is, we first need to find out what a cryptocurrency is. A cryptocurrency is a form of currency that is only used online. With cryptocurrency, you can send and receive money from anywhere in the world instantly, inexpensively, and safely.
For instance, if I was to send you 100 pesos from my UK bank account to your bank account in manila then the 100 pesos would be sent from my account to an exchanged system internally with my bank where they change my currency (GBP) into your currency (PHP) The exchange rates with banks are often very poor and most banks also charge a fee for this exchange.
After the currency has been exchanged it is sent to BDO, Security Bank, China bank, etc, where it would then be put into your personal account. This process is time-consuming and expensive however with cryptocurrency the fees are often non-existent, the time is instant, and the transaction is completely safe due to the integration of cryptograph science. You do not need a bank account to buy online using cryptocurrency, but you will need a cryptocurrency wallet.
You are likely wondering where bitcoins come from so to answer this very important question, Cryptocurrencies are mined. In the simplest explanation, miners run software to find a key that will open that padlock (a mathematical problem). They will be rewarded in bitcoins / other cryptocurrencies for completing this task. In 2014 the reward for bitcoins was around 25 bitcoins.
As time passes due to supply and the halving event (More on that later) mining bitcoin has become harder and the reward decreased this can drive up the value of current bitcoins that are in circulation. With bitcoin, there will only ever be 21 million coins that will exist, and it has been calculated that the last bitcoin will be minded in 2140.
Bitcoin was created on New Year’s day in 2009. No one knows who created bitcoin and they have not been heard from it since. There are many theories about the creature of bitcoin this ranges from him or her being killed by the government to him or her being time travel!
The list of speculations runs continuously in relation to this topic. In the early days of bitcoin, it was often suggested that bitcoin was only used for criminal activity. Now bitcoins and other cryptocurrencies are more mainstream.
Why Is Bitcoin Valuable In The Philippines?
Bitcoin possesses value because it’s something we see as value. For instance, Silver has been valuable since around 4000 BC. Silver is used in some technology, jewelry, and as a collector’s item but compared to historical times silver doesn’t pose much use to us in modern time yet it’s still valuable.
This is because we perceive silver as a valuable metal. Due to the high demand for silver the current supply increases. Just like silver, the demand for Bitcoin has been increasing arguable from 2014 onwards. In other words, the more people that get involved with bitcoin and ‘Want in’ will cause extra demand and trigger an increase in the price.
One other reason for the value increase in bitcoin is due to our phycological beliefs. As bitcoin is still very young, many people have several theories of what they believe will happen with bitcoin and the near future. Often these theories are positive regarding the growth of bitcoin, so other people who hear these stories and predictions buy bitcoin which also adds to the demand.
More stores, businesses, and even salaries in some cases are accepting bitcoin as a form of payment, and bitcoin, as well as other cryptocurrencies, are being used in our daily lives.
This is only a small selection of reasons why bitcoin has value, but the fundamental reasons tend to emanate from the use it has in our society. As with anything in this world, the more useful an object or system becomes often the more value is gained. As stated above bitcoin is being used more and more in today’s world there is no hiding from this fact. The question to ask yourself is do you personally believe bitcoin will have value in the future?
What Is FOMO In The Bitcoin Community, What Does This Mean?
F.O.M.O aka Fear of missing out. In 2017 the price of bitcoin raised higher than ever before many people across the world who invested in bitcoin in the early days of 2009 -2013 saw an enormous return on their investment.
As others saw this huge potential for growth, many people also got involved with bitcoin and other cryptocurrencies and it was suggested on mainstream platforms such as Reddit, 4chan, and others that FOMO hit. In other words, people were believing the prices were going to rise again and they feared missing out on being able to turn their coins into cash which they believe would happen in a short period of time.
They then began to invest in cryptocurrency. Ironically as more people joined the system the demand increase and so did the value. To date, however, we haven’t seen a price increase as high as of late 2017
What Is The Difference Between Bitcoin & Cryptocurrency?
Bitcoins is a cryptocurrency just like the thousands of cryptocurrencies on the market, but bitcoin is often talked about the most for many reasons. Bitcoin is the biggest and original cryptocurrency and will continue to be the leader in the near distant future in terms of capital. Bitcoin as spoken about previously was created by an anonymous induvial and it is not backed by any company or government so in other words there is no control over this currency. This can be seen in many ways depending on the individual perspective.
Some cryptocurrencies have different properties, for instance, some are used in the gaming community to buy extra features on games while others are used for technological use. Every cryptocurrency has value however this can be very low. At the time of writing this, some cryptocurrencies are valued at $0.000000001 which mean you could purchase millions of coins with only a small account of capital.
How Can You Make Money With Cryptocurrency In The Philippines?
Like stocks and shares, you could buy cryptocurrency in the hopes that one day the value will increase, and then you can sell to make an overall profit. Even though this is not a physical cryptocurrency you can buy physical items with cryptocurrency. As you will often notice with cryptocurrency the prices are extremely volatile so you could make a profit very quickly, but your investment could also plummet.
Another way people can earn money from bitcoin is through mining. Back in 2014 as we discussed you could earn 25 bitcoins, but the question is, Is bitcoin mining profitable right now?
The answer is yes however there are a few differences from 2009 to now. For instance, back when bitcoin and cryptocurrency were still new you could mine these with a simple laptop now you will need a much larger process unit to mine bitcoin. Often these units range from $10,000 to $100,000 + but some smaller units with less processing power can be purchased for around $2000 (103K Pesos as of today’s exchange).
The mining units use a lot of electricity and are often hot and produce noise so it’s important to think about this before deciding if it is useful for you to mine bitcoin.
Is This Investment Safe?
If we are looking into a cryptocurrency beginner’s guide for the Philippines one question that is paramount is the safety of this investment. One of the biggest reasons people became millionaires and even billionaires from bitcoin are because it is extremely volatile. It’s currently one of the best assets in the world this year outperforming many other investments so with high rewards most often comes high risk.
The biggest risk is, of course, the high volatile price. Often this can go up and down dramatically. In July I studied bitcoin for 30 days to help me with an article I was writing at the time. I saw the prices go up and down over 100,000 pesos in some instances. During that month I saw American president Donald Trump announce his views on cryptocurrency on Twitter and the Facebook announcement of libra was around this time too. Both events had a huge impact on the cryptocurrency price.
The next risk with cryptocurrency is potential hacking and theft. This is not hacking on the cryptocurrency itself as cryptocurrencies such as bitcoin use crypto science which is near impossible to hack. The hacking was on the cryptocurrency providers. in the last several years we have seen hacks from the US, Europe, and Asian counties alike.
A few months ago, you may have read in the news of a recent breach of a large cryptocurrency company based in China, so this threat is real and possible. These companies, however, spend billions of pesos on security and protection for their customers. Keep in mind that these hacks are still low compared to the total transaction that takes place daily in the crypto world.
How can I buy cryptocurrencies In The Philippines?
There are 3 cryptocurrencies companies that I would use above anyone else. This is because these 3 companies offer a wide range of cryptocurrencies tailored with a high level of protection and provide their customer with easy accessibility to their funds
Before you can buy bitcoins, you need a wallet. This is often very simple and not as complicated as some people explain. You simply decide which company you will go with them to once they have confirmed you are who you say you are (Usually a passport or other ID needed) you can then open a wallet. A wallet is an address a specified number that you can use to send and receive cryptocurrency.
Once you have a wallet set up you can buy a cryptocurrency and sell them at any time. If you buy or trade different cryptocurrencies you will need a wallet for each group. Example bitcoin will require a bitcoin wallet, Ripple will require a ripple wallet, and so on.
Some Filipinos Are Mining Bitcoin Is It Worth My Time?
We recently spoke about mining and answered the question is bitcoin mining still profitable in the Philippines. Overall the answer is yes but there were some considerations a person needs to think about not only logically but also mathematically to see if it’s worth their time.
Some mining units are expensive and can cost 100,000+ pesos easily so it is not a small investment, however, depending on your electric bills and your processing power of the unit you can earn your investment back in around 200-540 days.
This is a figure based on the average price of today, the expected bills, and the price of the unit so remember these days to earn your ROI is an estimate. If you are interested in another estimate forbes.com wrote an article about running an Antminer S9 (a good mining software unit at the time) and how much they could make running this use 24/7 over 1 full year. More details can be found on the hyperlink.
Bitcoin has a halving event roughly every 4 years. What this means is that the reward miners will receive is 50% less than what they received previously. The next halving event will be in May 2020. Some experts predict the price will rise before or shortly after this event, but these are forecasts only. If you are reading this after the event, then you will 100% know if they were right or wrong!
This event is written into the program of bitcoin which is needed to keep up the demand for this asset. So, after reading the information bitcoin mining may be a great idea for you or might not. The facts are the quickest and easiest way to obtain bitcoin is to buy them from a broker. But this may not be the cheapest option in the long term.
Do I Have To Pay Tax On This Kind Of Investment?
A cryptocurrency beginner’s guide for the Philippines would not be completed with a tax question. Yes, In the Philippines capital gains tax will need to be paid on any profits you make. Bitcoin and cryptocurrency are coming under increasing pressure to provide governments of the world with information about who is buying and selling a cryptocurrency, so it is recommended you announce all profits made to your local authorities.
As far as I am aware of research and data gathering, capital gains tax is the only tax you would pay on this kind of investment in the Philippines. However, this may change in the future so to be safe I would always recommend speaking to a local financial advisor or visit your local tax authorities.
Are Cryptocurrency The Future Of Money And Finances?
This is a hard question for me to answer. This is because we always aim to write our articles based on facts and there are no facts to say we are going to be using cryptocurrency as our main currency in the future. However, when we look into personal views and speculation this changes enormously.
For many people who transfer funds across the country, they will know that there are often many fees involves and this also brings along a lengthy waiting time. Cryptocurrency is different in many ways for instance fees are nearly non-existent and time is often instant. For an international buyer, this is a game-changer.
I believe more and more people will use bitcoin for purchasing and sending money across counties in the future, but I also believe there will be strong restrictions and hurdles from authorities across the world.
So, it’s difficult to say if cryptocurrency will be the future of our money. The facts are cryptocurrencies are growing and bitcoin is the leader of cryptocurrency growth. Bitcoin is only in its childhood it is important to remember.
So, with all the numerous uses and growth cryptocurrency has been experiencing over recent years I believe it’s completely possible that we might use cryptocurrency more as a mainstream currency. But for how probable it is that is still uncertain.
What Are Pros And Cons To Cryptocurrencies In The Philippines
There are many advantages and disadvantages when it comes to bitcoin and other cryptocurrencies. Most of these are highlighted above. However, when we put together the list which you can visit on the hyperlink above, you will notice there are many more advantages than disadvantages that we discovered.
One of the biggest pros of cryptocurrency I consider it is uniqueness. There is nothing similar to cryptocurrency today and there has never been anything comparable in the past either. With bitcoin, for instance, you can simply start trading or investing easily. It all falls down to your investment personality. Some of us are skeptical of new and untested investments while others are excited and hopeful.
Cryptocurrency Beginners Guide For The Philippines: TakeAway
Cryptocurrency beginners guide for the Philippines: There is a lot to consider when it comes to cryptocurrencies. The foundation of the question “Is cryptocurrency right for me?” will all depend on your expectations and your reasons for buying the cryptocurrency. Many people buy and sell using bitcoin while others just invest.
What is clear to me is that this unique type of investment is not going away anytime soon and based on the limited factual data we have of this investment; we can see clearly overall it is growing at an incredible rate.
Personally, I do feel bitcoin and other cryptocurrencies will be considered higher in value in the next 10 years than they are now. This prediction of mine is not due to what experts and financial gurus have mentioned but is because of the value it brings to humanity and our modern society. I believe more and more people will use this method for sending money internationally as this is not only safer and quicker but also cheaper.
The banks will have a hard job to complete with cryptocurrency in the future if cryptocurrency expands at the rate they have been doing over the past several years. But as I mentioned before this could be met with restrictions for authorities around the world.
There is no doubt that this investment is high risk. There are many different factors to consider and in the cryptocurrency world, financial goalposts are continuously moving.
There are some big claims for bitcoin for 2020, 2025 and even 2050 some of these predictions claim the rate of bitcoin and other cryptocurrencies could reach a price range of 25 million pesos! When I read that prediction I instantly thought” NO WAY! that is crazy that is never going to happen” This was the exact reaction experts were saying across the news and YouTube back in 2014,2015 and 2016.
It’s important we consider our thought carefully and learn from our history, I get only time will tell. We hope you enjoyed the cryptocurrency beginners’ guide for the Philippines.
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