Cryptocurrencies are the latest rage, with governments all over the world paying attention to them. The value of cryptocurrencies is now > $20B USD with millions of dollars being transacted each day. There were at least 80 cryptocurrencies on the market at the time of publishing. The most famous is Bitcoin, however, most of these are worth fractions of cents.
Cryptocurrency is created when users use their computers solve (“mine”) puzzle-like algorithms. The puzzles become more difficult to solve as more people attempt to “mine” the currency.
Cryptocurrencies can now be used to vacation in a Jamaican villa, shop on overstock.com, pay for Sacramento Kings tickets (NBA), or on Zynga games.
Bitcoin is the most famous cryptocurrency, but its one of hundreds. Litecoin, Peercoin, Fastcoin.. etc. you get the picture. Anyone can start a cryptocurrency – which are generated by computers and rely on decentralized, peer-to-peer networks. The reality is that most of these are / will become worthless.
Enter Dogecoin. In 8 weeks it has become one of the top cryptocurrencies in the world ($60M market cap). This currency was named after an Internet meme displaying a dog speaking in grammatically incorrect English. The difference between Dogecoin and all the rest is name recognition. Dogecoin’s fast rise is partially due to the crowd-funding activities it has been associated with.
Reddit sent the Jamaican Olympic bobsled to the 2014 Sochi Olympics by donating $30k worth of Dogecoins in slightly over a 24 hours.
Then Shiva Keshavan, an Olympic luger from India raised $5K in Dogecoin to fund his trip to Sochi.
Dogecoin’s friendly feel also makes it more accessible to the public. In fact on reddit, it has the 2nd largest cryptocurrency community and is growing much faster than what Bitcoin.
Similar to how the word “forex” was coined, use ”cryptex” to refer to crypto currency exchange
Bitcoin, then Litecoin and now Dogecoin. There are literally 100s of crypto currencies. Most of them will probably fail. Bitcoin is on the cusp of becoming mainstream, with an NBA team (Sacramento Kings – http://www.wired.com/business/2014/01/sacramento-kings-bitcoin/), and some major websites accepting them as payments.
If you need a site to keep track of and get the exchange rates between all the crypto currencies here it is: http://www.cryptocoincharts.info
The latest fad is Dogecoin. The coin was started based on an internet meme and uses a cute Shiba Inus dog as the logo. A printing, a doge coin is worth 0.00015 USD. A large amount was sent to Jamacian bobsled team to fund their trip to the 2014 Sochi Olympics. Currently, the easiest way to buy or sell Dogecoin is to get bitcoin, and then exchange it for dogecoin.
1. Mobile trading takes over – like in other industries, mobile will become the key. Mobile trading volume will surpass the desktop. More advanced mobile platforms will be introduced.
2. More trading platforms – Metatrader use will begin a decline as niche alternatives pop up.
3. Forex broker consolidation – Europe and Japan. Look for FXCM to continue to buy up mid sized brokers. A merger between 2 top firms is in the cards. The failure of FXCM – Gain was just a test run.
4. Volumes rise – this has been pretty consistent each year. Brokers pray for this.