B2B Vault Episode 5: Top 10 Questions About Cryptocurrency

Written by Allen Kopelman

October 21, 2021

Top 10 Questions we get about Cryptocurrency.

In this episode of B2B Vault, we will be talking about the top 10 questions we get about cryptocurrency.

  1. What is CryptoCurrency?
  2. How can I buy Cryptocurrency?
  3. How can I take Cryptocurrency in my business?
  4. Are Crypto transactions/payments secure?
  5. What is Blockchain?
  6. What is Decentralization?
  7. Inflation and Cryptocurrency?
  8. Is Cryptocurrency actually usable?
  9. Is Cryptocurrency bad for the environment?
  10. What backs Cryptocurrency?
    Check out this episode of B2B Vault and find out more about Cryptocurrency.

Watch for our next episode – which will cover how to Accept Cryptocurrency in your business.

www.npsbank.com/cryptocurrency

 

Hi, this is Allen Kopelman. With another episode of B2B Vault. Today, we’re here to answer questions about cryptocurrency. So I’m going to go over the top 10 questions. I get asked about cryptocurrency all the time. So what is cryptocurrency in basic terms? It’s a digital currency that lives on the blockchain, which is many, many computers, ledgers. So cryptocurrency can’t really get lost. You know, if you’re, you, you have to make sure you’re using a reputable wallet, like, um, Coinbase or Robin hood, something like that. And you know, that’s basically what cryptocurrency is, you know, and that’s gaining more acceptance every day. Number two, how can I buy cryptocurrency? So you have to go to exchange again, as companies like Coinbase, Robin hood, there are others, and you can go in, you can transfer. Usually, you transfer money from your bank account and to the crypto wallet. And the CR, when you’re, once you have your cash in the crypto wallet, then you can buy, um, your coin. And it’s always a good idea to, you know, start to monitor those coins, you know before you start buying them, you know, how can I take cryptocurrency in my business? Well, that’s something we’re gonna address in another video, but we have solved the crypto acceptance puzzle. So stay tuned for the next video for that or cryptocurrency transactions that payments secure. Yes, because you’re transferring money from your wallet, which is like on your phone from your phone and you’re transferring it, using a code that’s very secure. It’s very long. No, one’s going to remember this code because it’s probably like 50 or a hundred digits long for a transaction. You copy and paste it. And that’s how you’re going to transact with cryptocurrency. So it’s very safe. And the cryptocurrency, basically when it’s done, goes across what they call five blockchains. So it goes through five different exchanges and that’s how it’s verified that it’s good. And then it’s sent to the receiver. So, and then what is the blockchain? So the blockchain is a system of recorded information that makes it difficult to change or act. And the underlining technology is what’s called the decentralized ledger. So because these ledgers are on, in different exchanges and that’s how it’s all verified and these things are all over the world. So tons of redundancy. Okay. So the next question is, what is de-centralized and why is this important, this centralization is, you know, so these Bitcoins, this is a great way, Bitcoin, or eat a theory. Um, you know, in other coins, these are a great way to use, um, digital currency to conduct international business with customers. So it’s a really good way. You’re going to deal with somebody from another country. It’s not like taking a credit card where you can get a chargeback once the crypto has been exchanged, that’s it, it’s, it’s a done deal. You there, you’re sending money from their wallet. It’s like doing a wire transfer essentially, but with digital currency. So, you know, uh, decentralized banking, um, as far as like, or decentralized credit card processing, is that ever going to happen? I don’t think so. And there are too many things that go on with that, that have to do with, you know, how credit is viewed in the United States versus outside of the United States. But this is definitely, I think cryptocurrency is a great way for businesses to do business with luxury items, high-priced items, big-ticket items, and doing international transactions. And so that’s great. So the next question is inflation is crypto immune to inflation. Uh, that’s why crypto hasn’t been around long enough, you know, uh, you know, banks can print money out, you can walk into a store, take out your wallet, take out cash and buy goods and services. Crypto is very volatile. It’s going up and down. It’s traded 24 7. So you know, much different than the stock exchange. Um, is this something you should be, we’re going to talk a little bit more about, you know, buying, you know, crypto. So if you, you know, if you buy in crypto, you have to make sure like, oh, I’m buying it. It’s money. I can lose just like putting money in the stock market. If you lose it, are you going to be upset? So that’s the best way to kind of like to, to, to sum up, cryptocurrency and investing in buying it is if you can afford it, you know, you can do it. And is it is crypto usable? It’s becoming more usable every day. Uh, businesses are starting to accept crypto and some businesses. And like I said, it’s a great way to do business worldwide. It’s probably, you know, the two safest methods of doing business worldwide is one doing a wire transfer, uh, number two, doing crypto. Okay. And people ask another question on it and put it on the list. Oh, do I have to pay taxes? That’s something I would talk to your CPA about because when you are exchanging assets or you’re cashing out the crypto, there are some, you know, there are taxes to pay, but you can also deduct out all the fees you paid for crypto. So I’ve heard that crypto is bad for the environment. Is that true? So what a lot of people don’t realize is is that this crypto is being mined by computers, probably heard about their shortages of to get video cards. The prices of video cards have gone up significantly since Bitcoin became popular a few years ago. And in fact, a lot of the companies who make those video cards, that power, the Bitcoin mining machines that people make, um, they try to control who they’re selling them to and how many you can buy, because they do use a ton of electricity. I’ve seen some of these mining operations set up the room that they put it in, has to be literally, you need to be air with a lot of air conditioning. It’s got to be cold, uses a ton of electricity to, to do mine, these Bitcoins. So is it bad for the environment that remains to be seen? You know, but it’s definitely a suck on the electricity. Cause, uh, I know someone who was doing it and their electric bill was through the roof. Okay. Is crypto actually backed by anything? So it’s not really backed by anything it’s supply and demand. One minute Bitcoin could be worth 60,000, then it can be worked 65,000. Then it could be worth 50,000. So, you know, it is a volatile asset. You know, it’s probably more volatile than the stock market. You know, I always suggest to people go on their phone, download Coinbase and start to watch, you know, the volatility of crypto. Are there crypto millionaires? Yes. There are people that got into crypto and bought crypto when the crypto was 0.0, 0, 0 1, something crazy like that put in a couple of hundred hours. And you know, the crypto went up to a dollar, $2 and you know, boom, all of a sudden somebody is a crypto millionaire once they cash it out. Now cashing out crypto is also not the easiest thing because you have to cash it out. And in the terms of how, what, how much are people, how much of that asset are people buying? So if you try to cash out one Bitcoin that’s worth 50, $60,000 that could prove to be difficult unless somebody is in the blockchain trying to purchase one whole Bitcoin. You can, most of the time has to be done fractionally. So you’re purchasing frat, you’re selling fractionally 0.2 of a Bitcoin. Some of the smaller coins you probably can get rid of multiples, but once you get into the thousands of dollars, a coin is worth a thousand $2,003,000. That can be harder to do so watch for our next video. And you’ll find out what NPS bank, nationwide payment systems, and the payment advisory board have put together for businesses who want to accept crypto at their business. So thank you for listening. This is Alan from B2B vault, and now amazingly we have a podcast so you can download, um, Spotify, Apple Podcasts, Google Podcasts, and you can listen to this all in a podcast. So check it out. Thank you, Allen Kopelman of B2B Vault.

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