By Pascal Oparada
On Monday, January 29, 2018, the Nigerian National Assembly warned Nigerians on the danger of investing in digital currencies.
According to them, cryptocurrencies like Bitcoin and others have no country of origin, no boundaries and hence, not a legal tender. They likened it to the ponzi scheme, Mavdrodi Money Mundial (MMM) that swept across the country last year.
They are wrong. Cryptocurrencies are digital currencies that can be converted to cash in any currency anywhere in the world. The discovery of digital currency has led to the development of blockchain technology.
After being one of the first musicians to accept Bitcoin in 2014, Rapper 50 Cent (a.k.a. Curtis Jackson), appears to have accumulated a small fortune in the volatile digital currency.
As TMZ first reported, and the man himself seems to have confirmed, 50 Cent left his Bitcoin sales untouched until rediscovering them some time recently. At the time, he reportedly raked in around 700 bitcoins in album sales for his fifth album, Animal Ambition, which launched in June 2014.
On the date of the album’s launch, one bitcoin was worth $657. If reports of his 700 bitcoin haul are accurate, then 50 Cent made around $460,000 in sales at the time — not bad.
Today, that same amount of bitcoin is worth $7,770,000.
50 appeared to confirm the news in an Instagram caption, “Not Bad for a kid from South Side, I’m so proud of me,” followed by the comment, “I’m a keep it real I forgot I did that shit. Lol.” A later Instagram post showed bitcoin imagery with the caption, “all money is good money over here.”
50 Cent may have stumbled onto his crypto-millions, but that doesn’t diminish his early vision to support the then still fairly obscure digital currency. Still, cryptocurrency fortunes can change at a moment’s notice.
Blockchain
A blockchain is a digital ledger in which transactions made in Bitcoin or another cryptocurrency are recorded chronologically and publicly. It is like the stock market where investors view their stocks on daily basis, depending on their shares.
According to Coindesk.com, Samsung, one the leading chip makers in the world, is building Bitcoin mining chip. What this means is that with the new chip, they would be able to track transactions on Bitcoin anywhere in the world on any platform.
Cryptos
Several cryptocurrencies exist, but two stand out.
Bitcoin
Bitcoin is the main cryptocurrency in circulation. It has seen a bullish trend in the last one year. In early 2014, Bitcoin was trading at less than $100 to one. The surge in Bitcoin has led to the Crytocurrency frenzy.
Although slightly down due to tight regulations in many countries, like South Korea, which saw traders dumping Bitcoin in the market, one Bitcoin stands at $9,000 today. In December 2017, it was over $20,000.
Analysts have predicted a rebound this quarter as more people embrace it and more countries adjust their financial markets to trade in crytocurrencies.
Ethereum
Standing at over $1,000 to one, Ethereum (ETH), has also spurred huge interest in digital currency. ETH has seen its own share of stardom. As at last year, it stood at $50 to one but has seen a steady rise since.
Others are Ripple, Litecoin and Bitcoin Cash.
To trade in crytocurrency, you are required to have a blackchain wallet. It is the like the Central Security Clearing System (CSCS).
Converting your crypto to cash requires you to use an app, like Luno to link to your bank account. They are mostly secure transaction.
According to Coindesk, crytocurrency is the answer to boundary-less transactions across the globe.