Keeping up with developments in Bitcoin and the world of cryptocurrency is challenging, but not impossible. Especially with AI assistants (like Grok or Chat GPT) answers can be attained – literally instantly – to basic and complex questions. Having dedicated crypto experts and research teams on hand is helpful as well!* “Keeping up with crypto” is a relative term. Merely dipping a toe into the water to learn more is a form of keeping up with this evolving space, so go for it.
Here is a term that helps define how different the various cryptocurrencies are from one another: ecosystems. Cryptocurrency is not a single, big chunk of one “thing”. Rather, there are multiple ecosystems and thousands of interconnected cryptocurrencies. Bitcoin is the best-known cryptocurrency, most dominant and most widely accepted for making purchases at this time. Ethereum is another well-known cryptocurrency. Solana is another. Each operates in its own ecosystem and has extremely different qualities.
For example, it has been established that Ethereum runs much faster and more efficiently in terms of “confirmation time” and network performance than Bitcoin. In terms of mining – mining is a whole concept of its own – there are multiple cryptocurrencies that are faster and more accessible to mine including Monero, Litecoin, Ravencoin, Vertcoin, and Dogecoin. Ethereum is no longer able to be mined but rather is “staked”. (The difference is beyond me but is important crypto-wise.) ALL of these cryptocurrencies can be used for payment, with varying degrees of speed, ease and merchant acceptance.
Investing in or gaining exposure to cryptocurrency has advanced greatly in the past year. Originally, going back to 2021 and earlier there was only the ability to trade through Bitcoin futures. Then in January 2024, various investment firms introduced their own ETFs that track the spot price of Bitcoin including HODL from Van Eck*, IBIT from iShares and FBTC from Fidelity…and it was off to the races from there. But the race is not over; it has only started.
ETFs related to Bitcoin specifically are still the most prevalent way investors are easily gaining investment exposure to cryptocurrency.
As for gaining possession of crypto (through both “hot” and “cold” wallets, cold being vastly more secure) and using cryptocurrency as a form of payment, Bitcoin is one of thousands, each with its own features. Gaining possession of cryptocurrencies is not simple but has gotten slightly easier. Stay tuned and please report back with comments and questions.
BUYING CRYPTOCURRENCIES IS EXTREMELY VOLATILE AND RISKY.
CRYPTO EXCHANGES, CRYPTOCURRENCIES AND THE BITCOIN ETF ARE **NOT** FDIC INSURED IN ANY WAY.
*Compliments of a presentation from Van Eck. Van Eck Securities Corporation is an investment manager and invests in Bitcoin and other cryptocurrencies both for its clients and for itself as the corporation. Van Eck is also said to have the largest dedicated research team among the major investment firms and has been on the cutting edge of crypto investment vehicles and opportunities.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.