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Disclaimer: The following review is for entertainment purposes only and should not be used as financial advice. Please consult a finance professional before engaging in any investments.
About the book
Cryptocurrency: Bitcoin, Ethereum, Blockchain: How to Guide: Investing, Trading, Mining, written by Chang Lee and published on October 1, 2017 sports a manageable read at 122 pages.
The book starts with a discussing the block chain technology which is a way to verify transactions using cryptocurrencies. A cryptocurrency miner is actually verifying transactions for a cryptocurrency as a reward. The number of miners actually makes each transaction safer and less exposed to fraud.
He then discusses the pros of cryptocurrencies such as security, not needing a trusted third part and lack of inflation and the cons such as usage by the underworld.
He then discusses the famous cryptocurrencies, bitcoin and ethereum, how to buy and trade cryptocurrencies and how to mine them. His discussion in mining goes through the different technologies that one can used for mining with both the pros and cons.
Of course he also gives a warning with all the safety concerns with this world with rampant scams, underworld activities, Ponzi schemes and theft.
Key takeaway and commentary
My takeaways from this book are
- cryptocurrencies are a way to do transactions without the need of a trusted third part.
- Miners are awarded for verifying transactions
- one should be careful when investing as, traditional investment tactics may not work and there are many scams and legal issues out there
My commentary are:
I find the idea of not needing a third party very interesting – if I make a deal or a bet with my friend, how would I know that the transaction will get settled. For example if I buy a soda from him, what are the chances that either I get the soda or he gets the money – we can trust each other or have a third party as an arbiter. Cryptocurrencies gets rid of all these trust issues.
I do however have issues with the inflation point that he had raised. I’ve read a great deal on inflation and deflation and historically mild inflation is best for a society’s livelihood. Deflation is very deadly – sometimes more so then hyperinflation – we see this during the great depression and the recent 2008 recession. Having money tied to a finite commodity like gold had caused so much political strife – countries cannot increase the money supply when they need to (fighting deflation) or destroying money when need to (fighting hyper inflation).
The block chain concept is pretty interesting to me and so is currency – anyways what do you think?
Feel free to leave your thoughts in the comments and if you found this post useful or enjoyable, please share and leave a like. Thank you! Stay tuned for tomorrows books: Mastering Bitcoin: A Beginner’s Guide To Bitcoin, Cryptocurrencies and Investing
For more information on the 2018 challenge, visit the following link: Business Trek 2018 reading challenge.
You can also get the book via the following link: Cryptocurrency: Bitcoin, Ethereum, Blockchain: How to Guide: Investing, Trading, Mining
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