I'm blogging here about something that is not really homestead related. However you can make some money and maybe buy a place out in the country and start homesteading or pay off some bills.
Have you heard of crypto-currency?
You likely have heard of BitCoin which is the most popular one and also has the highest price. I heard of Bitcoin 6-7 years ago and it was worth about $30. Last fall it was over $25,000 a Bitcoin! I didn't invest in Bitcoin but that would have been great!
So, what is crypto currency? Well it is a digital currency. People "mine" them using computers. Special computers spend many hours... solving complex mathematical algorithms. When the task is complete the reward is a BitCoin. How is it a currency? Well if a bunch of people agree on something having value, and the item to be used is limited in quantity, then it can be used as a means of exchange. Salt was used many years ago as money. It is useful, and it's quantity is limited. Unlike the Canadian and American dollar, which can be printed whenever the government wants to inject more into the economy. There is nothing backing our "fiat" currency which is the problem. Once upon a time the dollar was backed by gold but since 1971 it isn't any longer. There is nothing of value backing our money. Actually we have a debt based economy which doesn't work and always eventually collapses.
Cryptos have a finite number. For example originally there were 21,000,000 Bitcoins available to be "mined". There are only 16 million now as the rest have been "lost".
Bitcoins are stored in a digital wallet on a computer. If the owner of said wallet forgets the "private key" for the wallet the Bitcoins are locked forever. There's basically no way to recover them without the passcode.
What can you buy with Bitcoins? In some larger cities like Toronto there are a dozen or so Bitcoin ATM machines where you can exchange your Bitcoins for physical Canadian dollar bills. Some places accept Bitcoin as a method of payment. Some car dealerships for example will take Bitcoin as payment for your new vehicle purchase. A friend of a close friend of ours has moved to the Philippines as Bitcoin is accepted there virtually everywhere, to buy groceries, to get a haircut etc.
Are there other cryptos? Yes, there are hundreds of cryptos. Some are intended to be actual currencies while others are applications or platforms to build apps.
People say that cryptos aren't real money. I don't think what we use as money, is real money actually. Places accept it as payment but there is nothing backing our dollar and secondly "they" can print as much as they want to. When it's unlimited there is no real value.
Some people say they don't trust a digital currency. In reality, our money is digital anyways. If you have $5000 in the bank they don't have a shoebox in the back with your name on it and $5,000 in cash inside. It's all ones and zeros on a screen. That's no different than Bitcoin really. Bitcoin being limited in quantity is actually better contributing to its value. Some people say Bitcoin is going to $100,000, I've even heard a million. Who knows really. I would say though that cryptos are here to stay whether we like it or not.
There is an oppourtunity to make some money investing in some of these cryptos. Eventually most of the cryptos will be gone I think and only the real and useful ones will remain. Stellar Lumens is a good one to look into. It is supposedly replacing the swift banking system. I heard that they signed a deal with IBM as well.
Another one that looks quite promising is Digibyte. The good thing about investing in cryptos is you typically don't have to invest thousands of dollars to make some serious money. A few hundred dollars put into Bitcoin or Ethereum when they first came out would have made you a few million dollars.
How to invest? More on this later... stay tuned!