In this first episode, we explore some recent history in Bitcoin and provide links to additional resources for your own studies. Have you heard of Bitcoin? Do you see as I see: that it is emerging as an actual method to make payment, due to the technology we hold in our hands and pockets, and due to a greater acceptance and understanding in society? Have you heard of Bitcoin Cash → perhaps a step closer to entering into our ‘everyday’ lives. We also demonstrate how to apply some wisdom from Permaculture to ‘Start Doing’ by opening a Demo Account.
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I am a man of curiosity, so naturally I’ve heard of Bitcoin. What is it?[1] Until November 26, 2017, I hadn’t bothered doing any objective research on this topic. Now, however, my living arrangement gives me reason to do this research, and so, let’s see what we can learn!
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Early on, I’ve landed on one several broker websites that trades in Bitcoin. As to my understanding, it was only recently that this cryptocurrency (virtual money or digital currency) became available to trade in the Foreign Exchange Market (Forex).
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You, as the reader, should be aware that I am currently a guest of someone who has worked with Forex since 2004. So, it is in both of our interests (his and mine) that some research be done into Bitcoin and Forex. I am offering myself as a writer, researcher, and self-appointed guinea pig into the world of Forex and Bitcoin.
In Recent News
On August 1st, 2017 there was an event called a ‘Hard Fork’, where Bitcoin Cash was created by the Bitcoin community. Visualize a future where it’s possible to walk into any modern market and use a mobile phone to purchase what is for sale. Imagine a past where someone had a great sum of value in a currency called ‘Bitcoin’, but no such modern market would recognize its value. So who among us wants to actually own or chase the accumulation of this currency? In the past: ‘not me’. In the future: ‘yeah sure, sounds convenient’.
So where are we in the present?
August 1st of this year marks the creation of a currency which appears to me as a option leading to the visualized future mentioned above. Still, though, it is a far ways away. I base this comment on the fact that 1 unit of Bitcoin Cash was valued at $240 shortly after its inception, and if the model holds for the Bitcoin programming, there will be a limited supply and so this value is expected to increase. Well, good luck buying a coffee {or cooling mint tea 😉 } with a virtual coin worth two and half Benjamin Franklin’s!
Now, compare this Bitcoin Cash at $240 to the value of Bitcoin at the same time: over $2700. So we see an improvement toward a practical ‘everyday’ application. [2]
Keeping in Mind…
When it comes to trading with Forex it might not really matter to you what the practical application is of the currency. Just like how someone trading on Forex might buy Euros with absolutely no intention of travelling to Europe to use the currency. But some people will use the currency, and this matters. After all, and borrowing from a lesson taught through Permaculture, currency must flow to be successful. Why else should it be called currency…flows like the current.
The Journey Continues
Here I sit, day 2 of objective research into Forex and Bitcoin, how to proceed?
Bill Mollison put the word out: ‘Once we start doing we will know how to proceed”
→ Incidentally, consider watching this video[3] from Doug, one of the Bullock Brothers, about the above mentioned quote. 34 seconds…like eating a cookie…
Each broker website I visit has a “Free Trial” or “ Free Demo ” option. So I find one that appeals to my tastes, and Start Doing.
Opening a Demo Account
Curiosity strikes as my eyebrows furrow. How come ‘Canada’ isn’t in the list of countries? “[Broker] does not accept clients from the U.S., Canada, Belgium, Sudan, Syria and North Korea.” Diversion point. There’s something to learn here.
An article from the Globe and Mail mentions that many brokers are not registered with certain regulatory organizations. This eliminates insurance otherwise provided by the Canadian Investors Protection Fund (CIPF), something one would want to have in the case that the holding firm becomes insolvent [4]. My feel for this is as follows: you go to the bank and ask to withdraw some money, and the bank says “no, sorry, we don’t have that much money”; the bank has become insolvent and you can’t access your money. With no insurance to back you, you may never retrieve your money.
From a solutions perspective, this may be a viable entry point of using Bitcoin for someone wanting to trade with these brokers, who lives in a country that is on the ‘we do not accept clients from your country’ list. Bitcoin does not require information about who you are nor where you live. → Actually I need to pull in support from the community of readers, or from my future-self to look deeper into this idea of Bitcoin and Anonymity.
Ok, that’s enough for me for now. Back to the task at hand: Demo Account!
Open a Demo Account…Take Two!
Since it’s only a demo anyway, let’s pretend I live in India.
First off, I’m noticing that I’ve been treated as though I’ve opened a real account. The emails are asking for ‘Proof of Identification’ and ‘Proof of Address’. To me, this feels like they are reaching beyond the comfortable zone of ‘I just want to try this out’ into the discomfort of ‘Wait a minute, is this for real?’.
After opening the ‘MetaTrader 4’ trading software I’m faced with the ‘overwhelm’ sensation. There is obviously a lot going on, and I’m oblivious to almost all of it. I feel slight relief seeing there’s an option to change the language…not relief because I prefer some other language, but relief because it makes me believe I am in control, that I have some understanding, and with this there is a small gain in confidence that I can learn this ‘thing’. It is a beast, and it is tameable.
A few clicks here and there, now it’s time for me to retire for the moment. A fresh mind will be better fit to diving into this learning activity. Besides, I’m being self-reminded that it’s important to understand what this ‘margin’ term means. More research.
Stay Tuned
As the days progress, this adventure into the financial trading world, and the current topic of trading with Bitcoin, will continue. Depending when you are tuning-in to this journey, the entire season may already be released (thinking in terms of a television series). Otherwise, you are right here with me!
I hope you are at peace, and that your environment supports you in the ways you need.
References:
- Tal Yellin, Dominic Aratari, Jose Pagliery. What is Bitcoin [Online]. CNNMoney. Available at: http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=EL. [Accessed: 27 Nov 2017]
- Selena Larson. 2017. Bitcoin split in two, here’s what that means [Online]. San Francisco: CNNMoney. Available at: http://money.cnn.com/2017/08/01/technology/business/bitcoin-cash-new-currency/index.html. [Accessed 27 Nov 2017]
- Permaculture Design. 2016. Just Start with Doug Bullock [Video Online]. Vimeo. Available at: https://vimeo.com/181129075 [Accessed: 27 Nov 2017]
- Gail Bebee. 2012. Are you missing out on forex trading? [Online]. The Globe and Mail. Available at: https://www.theglobeandmail.com/globe-investor/investment-ideas/are-you-missing-out-on-forex-trading/article545820/ [Accessed 27 Nov 2017]
