Welcome to the launch of Moneyweb Crypto, a new platform that will run alongside Moneyweb and provide commentary, insights and news on all things cryptocurrency and blockchain-related.
We’ve been debating whether we should go where angels fear to tread for some time within Moneyweb.
It became clear that a sizeable percentage of Moneyweb readers have at some point invested in bitcoin, and many of those who haven’t ask us whether it’s safe (there’s no quick answer to that other than to point out that cryptos are extremely volatile and there is potential for loss, just as there is potential for gain).
Read: Crypto: The hype, the profits, the fundamental challenge
Readers also ask us to offer opinions on whether they should get involved in an unbelievably promising get-rich scheme built around bitcoin.
Let’s dispense with that up front: we’re suspicious of anything that relies on multi-level marketing to attract clients, and unless you control your own bitcoin in your own or a trusted wallet, we advise against it.
So we decided to take the plunge with Moneyweb Crypto. There is too much happening in this space to ignore.
Focus
Our initial focus will be on education on the risks and benefits, and an exploration of who’s doing what in the world of cryptos and blockchain in SA and abroad.
Like it or not, the world of investment is changing. You can purchase digital gold (fully gold-backed); there are crypto payment systems already in place that may, in time, challenge the likes of Visa card; and you can purchase crypto ‘bundles’ or unit trust-type investments spread across a variety of the top cryptos.
One of the big criticisms of gold is that it earns no dividend and pays no interest. That’s now a thing of the past, with the launch of AuBit, a gold-based crypto that generates a return on gold using the power of an ever-expanding network of participants who earn a percentage of transaction fees.
Revolution
Every imaginable corner of the financial world is being overhauled, digitalised and decentralised, including stock market shares. This is part of a financial revolution called DeFi or decentralised finance, where intermediaries such as banks and advisors are being cut out of the loop. The rise of DeFi was identified as one of the most bullish crypto developments of 2020 in a recent survey by Digital Currency Group, one of the largest venture capital groups in the world focused on this sector.
There remains an understandable perception that cryptos represent the financial Wild West. They are largely unregulated (though that is changing fast) and this was by design: the blockchains on which cryptos nest are distributed ledgers falling outside the control of any central bank or authority.
The bitcoin blockchain details every transaction back to its launch, and this is freely available to the public.
Its transparency and security is now proven beyond any doubt.
Regulators can impose rules and standards on the exchanges and…
Read more:Welcome to the launch of Moneyweb Crypto
