Home » Archive by category "Digital Currency"

Podcast: Protect Yourself From Bank Hacking

August 28 Podcast

On this episode – Russian hackers access thousands of U.S. bank accounts, what can you do to protect yourself? What companies and industries offer the best 401k plans? New digital currency platform provides easy way to set up multiple currency portfolio. What high corporate tax rates mean to you, a case study of Burger King’s plans of moving its corporate operations to Canada.

Secret Bitcoin Project Revealed

Regular readers will know that I have been very excited about Bitcoin for some time now. Part of my Bitcoin enthusiasm has been channeled into trying to find the ‘next Bitcoin.’ Up until Tuesday of this week, I considered the only real runner-up to Bitcoin to be Ripple XRP. As a result, we have been giving away Ripple to our new subscribers. We have also been providing substantial education and support on how to use the Ripple platform to buy Ripple XRP, Bitcoin, and other digital currencies.

Earlier this week, on one of the news feeds that I follow, I became aware of a new digital currency that appears to also have a real shot at becoming another Bitcoin. So, you can now put two currencies on the list of my most promising up-and-comers – the new kid on the block is Stellar.

What is Stellar?

Stellar is a new decentralized digital currency, being backed by some of the biggest players in the business. You will already find the currency trading under the symbol STR on a number of digital currency platforms. The big ‘backstory’ here is the name Jed McCaleb. McCaleb is the guy that founded the MT Gox Bitcoin trading platform and also Ripple XRP. Caleb sold MT Gox and it was about a year after he left that the exchange collapsed. After co-founding Ripple Labs, McCaleb left the company in 2013. Until just recently, Stellar was simply known as ‘The Secret Bitcoin Project.’ The currency start-up has been funded by Stripe (a PayPal like payment platform).

It is also interesting to note some of the other very impressive names on the board of Stellar, including former PayPal executive Keith Rabois, YCombinator partner Sam Altman, Automattic CEO Matt Mullenweg, and AngelList co-founder Naval Ravikan.

What makes it different than Ripple?

There are quite a few similarities here between Ripple XRP and Stellar, but there is one huge difference: 95% of the Stellar currency is being given away to get it out into people’s hands. This is a very big deal, and, if you have a Facebook account, you can get your free Stellars (as well as help anyone you know with a Facebook account to get their free Stellars, too).

Here is how it works –

1. Go to the Stellar website.

2. Scroll to the very bottom of the page and click on ‘Get Your Stellars.’

3. Select a username and password to open up your virtual wallet.

4. Log in with your Facebook account.

The amount that you receive may vary, but in my case I was given 500 Stellars. My understanding is that they have been strategically lowering the amount they are giving away as the demand increases. As of the date of this article, the 500 amount is still good. The news on this is breaking by the minute. As a CMC Plus subscriber, we will keep you up to date on developments.

James L. Paris
ChristianMoneyPlus Co-Founder

Podcast: New Requirements For Buying Bitcoin

New requirements for buying Bitcoin, the $9.84 credit card scam, buying life insurance in your fifties and sixties, and how to challenge your tax assessment.

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Podcast: How To Save Money On Prescription Drugs

Is Valentine’s Day a scam?  Jim and Bob comment on the Bitcoin crash. How to avoid the one ring telephone scam. How to save money on prescription drugs.

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The Dollars And Cents Of Bitcoin Mining

I have been receiving a lot of questions on the topic of Bitcoin mining.  Without getting too deep into the complexities of the topic, Bitcoin mining is the process by which one can use their computer’s computing power to earn free Bitcoin.  Your computer is tasked with solving complex math problems, and in doing so earns Bitcoin. It is called ‘mining’ since the comparison is made to the physical effort it takes to bring a commodity like gold or silver out of the ground.  It is a way for the currency creator to get it into circulation by requiring the initial adopters to ‘work for it.’  Good news for miners, as there was an important ruling that came just days ago exempting miners from regulation as money transmitters.

Major Bitcoin mining enthusiasts go to great lengths, such as buying multiple PC’s dedicated solely to mining.  In some cases, special stand-alone computers called ‘mining rigs’ are used.

The Mining Equation

I have been trying to figure out if mining is really a money making proposition or not. As noted above, most serious miners purchase computer hardware. Mining also consumes a not insignificant amount of electricity, so that is another consideration. There is also the problem of ever increasing ‘mining difficulty,’  The more people mining and the declining number of Bitcoins available (yes, there is a finite amount that can ever be created) creates an increasing difficulty level.  This means less and less Bitcoins are earned for the same amount of computing power.

It appears that based on the current cost of most Bitcoin mining machines, the initial investment can be recovered in four to seven months.  This is calculated on the current value of Bitcoin.  Of course, this is a huge variable.  For instance, if the value of Bitcoin drops it will take that much longer to pay for the mining equipment. On the other hand, if the price of Bitcoin goes higher, the pendulum swings in the other direction (reducing the time it takes to recover your capital outlay).  One other unknown variable is faster mining machines being developed and selling for less and less each generation.  Each time a new round of faster and less expensive miners hits the market, the difficulty level and number of people mining rises exponentially.

For a more precise method of calculating potential mining profits, I would recommend using a Bitcoin mining calculator. There are a number of these calculators online and you can find them doing a simple Google search.  See example of mining calculator being used.  In this example, I am using a 38 GHS Asic Miner that is available on e Bay for $429.  It is interesting to consider that this miner (at current Bitcoin prices) would generate $197 monthly (Note that the below mining calculator does not factor in the cost of electricity).  I used this power calculator and inserted 300W at 24 hours of usage and came up with $20 per month for electricity costs.

minerexample

Buying A Mining Contract

There are some new services popping up such as Cloud Hashing.com that will sell you space on their Bitcoin mining rigs for a specified period of time.  This seemed interesting to me at first, but after running the numbers I don’t see much profit going this route.  The cost of their mining contracts are so high that I don’t see much end profit for the buyer of the contract.  It is interesting to see Bitcoin mining contracts for sale on eBay.  Quite a lot of interest in these right now.  I guess if the price is right (via an auction), it may be a viable option.

Conclusion

If you are a Bitcoin bull, buying your own mining rig seems to makes sense to me based on the current numbers.  You can get a starter mining rig for just a few hundred dollars.  This is the way to dip your foot into the deep end of the pool without investing thousands of dollars.  Also, it should be noted that mining on your own is the most difficult approach.  Most experienced miners join online mining pools.  By mining in a group (pool), you raise your chances of consistently earning more Bitcoins per day than working on your own.  For more on mining pools, just do a Google search for the phrase ‘Bitcoin mining pools.’  I do touch on this in my Bitcoin course, as well.

James L. Paris
ChristianMoneyPlus Co-Founder

P.S. I just bought a Bitcoin Antminer, which mines at a rate of 1.6GH. You can get grab on Amazon for around $60.  This one plugs right into your USB port, but based on its speed it will take about 6 months to recover your investment.  It will generate about $8 monthly based on current Bitcoin prices.  I bought this only to ‘test’ out the unit and don’t see it as a viable money maker.  There are some people buying multiple Antminers and using a USB hub like this (to run them all off of one computer).

New Way To Buy Bitcoin

Many of you know that with the explosion of Bitcoin there have been some significant changes in buying and selling.  On my video course, which was live back in the spring of 2013, we suggested using BitInstant.com. Due to volume and regulatory issues, BitInstant is no longer accepting new orders (although we understand that they will be back online soon).  As a result, we are suggesting the following new procedure:

1. Go to www.blockchain.Info and set up a free wallet. A wallet is simply an online means of securing and storing your password and log in credentials.

2. Once you have the free wallet, log in and then you will see on the right hand side of the page:

bitcoingraphic

Remember, you don’t need to buy one full Bitcoin, and many people are starting with $50.  I think starting with a small amount of money is a great idea.  Of course, if you have questions on the buying process, you can always submit a question through the Q and A dashboard.

James L. Paris
ChristianMoneyPlus Co-Founder

How To Earn Free Ripple XRP

Many of our Bitcoin enthusiasts are familiar with Bitcoin mining, the process by which you can use your computer to participate in the process of solving complex math problems (and earn Bitcoins),  Bitcion mining is covered in our 3 1/2 hour video workshop available to subscribers of this site (see home page).  What I have recently learned is that Ripple XRP has a mining option of its own.  Here is a blurb from their site –

We’re giving away XRP in exchange for donating computing power to scientific research via World Community Grid. Anyone with an Internet-connected computer or Android device can participate.

I have not tried this yet, but here is a link if you want to give it a try.  Please report back your experience.  They say they have given away 69 million Ripple XRP to participants.

James L. Paris
ChristianMoneyPlus Co-Founder

 

Weird Trick Turns Ripple XRP Into Bitcoin

Keeping up with all of the features and benefits of digital currency has kept my head spinning. One of our subscribers, Dan Annweiler, shared with me the results of an interesting experiment. He logged into his Ripple wallet and clicked on ‘send’ and then inserted the address of his Bitcoin wallet. What happened? Well, the Ripple XRP became Bitcoin and then showed up in his Bitcoin wallet. Very interesting.

I had to try it myself, and it does work. This presents a very interesting new option of getting your hands on Bitcoin. If you are now familiar and comfortable with how to buy into Ripple, you can now simply use your Ripple to buy Bitcoin. All you need is to set up a free Bitcoin wallet over at www.blockchain.info.

Remember that you can buy Bitcoin in a small fraction, using up to eight digits after the decimal point.  The only thing that I was a bit hung up on was how to input the amount of Bitcoin to ‘send’ from my Ripple wallet.  It turns out that you have to start with 0. before you insert the amount.  So, here is an example – 0.00000001  of how to format your entry.

Another reason to love Ripple XRP.

James L. Paris
ChristianMoneyPlus Co-Founder 

Podcast: The Good And Bad Of Setting Goals And Resolutions For The New Year

An update on the growing popularity of digital currencies and an interesting take a ‘Nostradamus’ prophecy guy has on it, the good and bad of setting goals and resolutions for the new year, a new ‘risky’ investment becomes available in 2014, and how one family paid off more than $118,000 in debt.

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Podcast: JP Morgan Obtains Patent On Bitcoin-like Digital Currency Of Their Own

JP Morgan obtains patent on Bitcoin-like digital currency of their own.  Does it still make sense to buy term and invest the difference?  The coming collapse of the public pension system.  The increasing popularity of semi-retirement.

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How To Buy Ripple (Video)

Podcast: Is Ripple The New Bitcoin?

Is Ripple the new Bitcoin?  The tax implications of profits in virtual currency.  Holiday scams and the pitfalls of investing in collectibles.

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Podcast: Financial Documents Your Family Needs To Know About

Financial documents your family needs to know about.  Bitcoin up above $200 again. Buying stock in dollar stores.  What is a ‘safe’ withdrawal percentage from retirements plans these days?

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