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Please excuse this thread, posted here strictly for rumademic purposes/feedback. Even if you ignore it completely, I am sharing my experience - if only one person reads it.

Ok, first of all: many of you have heard of Bitcoin and some may even have an in-depth understanding the concept of cryptocurrency - this thread is not about "what is bitcoin". If you need to learn about bitcoin, let google be your friend - however I will provide a brief "concept" to start the ball rolling:

Wow, a mouthful right! But in basic terms see Cryptocurrency as "virtualized currency". Risky, for sure - but no more so than any other commodity.

Cryptocurrency and YOU:

As a Caribbean nationals, each of our countries are subject to fluctuation in the dollar (USD). Many are tied to the USD, some float - but all currency markets in the Caribbean are regulated. Individuals and corporate entities all have strict regulations around foreign currency transactions - which inherently (attempts to) stabilize our national currencies - but unfortunately exposes individuals to the "whims" of or fiscal/political economic management policies.

Cryptocurrency (like Bitcoin), a de-centralized currency, bypasses those regulations and limitations.

Legality of Cryptocurrency



Ok, a [simplified] side note on currency: so the stability of ANY currency is tied to the market confidence in said currency. By market, I mean GLOBAL market - not the Central Bank of the country that issues the currency - but the global markets' confidence. That is a simplyfied statement of course, but that is what it boils down to - and with this concept Cryptocurrencies are no different to any other currency.

The biggest hurdle to Cryptocurrency was and IS and will always be: market confidence. Specific hurdles like the legality of such a currency have an immediate impact - and when judgments like that of the IRS above are issued, it goes a long way to establish the Cryptocurrencies as a vialble option for traders to reap benifits within the confines of the law. It also proves that the Cryptocurrencies are here to stay!

Cryptocurrency: So what is a Bitcoin worth?

Brief history of the value for Cryptocurrency "Bitcoin" or BTC

launched, value after a few days was 1 BTC = 0.09USD July 2010
feb. 2011 1 BTC = $1.00 USD [important point]
July 2011 1 BTC = $31.00 USD
Nov 2013 1 BTC = $1000.00 USD
Current: 1 BTC = $800 - 950USD

As you can see, it has had spectacular growth - and believe me the actual micro analysis would reveal a WILD ride. Yet any trader (stock, currency, bond) would drool at those numbers - yet incredulously - that is not the only benefit to Caribbean nationals.


Up next: Options for Cryptocurrencies (like Bitcoin) and you - the Caribbean national.

[small matter of work to attend to]

In reply to pelon

do you hold any position in Bitcoin?

In reply to pelon

Know this the reason Bitcoin has spiked is probably because the Chinese have been using it as way of getting money out of China. The Chinese government is aware of this and have/will take steps to close off this route. Once this occurs it may not be as lucrative to be in.

Option for Cryptocurrencies

They are but a small handful of options for person in the Caribbean purchase Cryptocurrencies. Trinidad and Tobago have the upper hand in the game for a number of reasons, and are the primary backers of the first major (by way of investment) trader in the region: Bitt and particularly: The Koblitz Group.

Live (active) Buy and Sell options: LINK You can see the live daily volume is very low.
Optional reading (if so inclined):
Using digital currencies to increase Caribbean participation in the Internet Economy: Link
Opportunities and risks associated with the advent of digital currency in the Caribbean UN sponsored Paper, as per above

UWI based: Winston Moore and Jermy Stephen have also produced an excellent study, available from the Central Bank of Barbados: LINK

All of the above is centered around the traditional model of acquiring Cryptocurrencies, however I will introduce to you my personal method of earning Bitcoins over the last <3 Years.

Up next: You already have virtual money: Yes you do!

In reply to Ninetenjack

Agree 100% - that the power currency players (US, China) will not play nice with a decentralized currency - if and when said virtual coins gain REAL traction.

China hates the concept of a virtual, de-centralized currency only because they rely on hard currency manipulation to lower the cost of exports!
The irony here is that Cryptocurrencies is one solution to "empire currencies", and their resistance is actually proof of concept.

Anything above 1-1USD in currency trading means opportunity (if you know how to manipulate). More on that later. This thread is about getting someone to earn a bit coin or two....

@sudden: yes.

In reply to pelon

ownership shares or ordinary

In reply to pelon

You didn't get goxxed back in the day ?

Whatever happened to that French chubster that used to run that racket ?

In reply to pelon

Got shares in Bitt?

@djdrastic: no
@nick2020: no
@sudden: no, none of either

I do not own shares, nor have any interest in any currency market company, nor Bitt. ZERO. I wish them well - but interest in them is purely rumademic - I stated so up front...

Back to the point at hand:

Most of us own "virtual currency" already.
Yes even you!

It is far more common than you realize. Being cognizant of that: I simply convert parts of mine into Bitcoins (USA based) out of curiosity.

Yes, that is correct: I convert "quasi virtual money" into virtual money (Bitcoin), which if I so choose, could be converted to cash.

What is this quasi virtual money, that I claim most of us have? REWARDS!

Take my Amazon card, I get "cash back" just for using the card (and paying it off every month). This cash back is allotted as "amazon points" - these points are in fact: VIRTUAL currency. Many companies have a similar "currency" Microsoft, apple google etc all do the same. tokens that can be converted to cash and or items. In the case of my amazon points, I simply convert the points to gift cards, and from gift cards to bitcoins. (See paxful)

In total I have invested just under $1400 (USD) over 3 years - and own aprox. 6.8 BTC from using gift cards, rewards points, even Walmart "buy this and get a $50 gift card" promotions... they all can be converted to Cryptocurrencies

As you can see, I did not take any hard currency to purchase coins, and while the entire exercise has been "out of curiosity" - it has been very successful by ratio.

The entire intent here is to show how locals (like in Bim) can diversify (even in small amounts) with these emerging virtual currencies.

Up next: Cryptocurrencies: A plausible option to hedge against devaluation in volatile economies.

In reply to pelon

Okay I have some layman questions to ask:

Didn't a financial institution dealing with bitcoin have some issue that happened a few years?
How safe is my bitcoin in this evil world of hacking?

I know virtual currency will be a hard sell in Barbados with the aging population. Man, some people still hold onto their "bank book".

I investing in water. I think bad times a coming.

In reply to pelon

good advice. i have to take with a grain of salt what i heard about you

have you seen that new solar company (Deltro Group) has been granted permission to build a plant in Bim. what do you think?

In reply to sudden

You are hell bent on calling me out with my solar investments in Bim alright man... I prefer to stay low profile.....

what do I think: GREAT! We need to move far away from fossil fuels as a small island nation. The more players the better!

In reply to nick2020

And if you study currencies around the global, the integrity of the Cryptocurrencies has been relatively stable. Look at the Euro for example. Currencies collapse and are volatile. The bitcoin markets are not 10 years yet - expect madness for sometime - but that is not a deterrent. see where financial institutions sit in the chain


Safe is relative ok, I classify it as: vulnerable. Like your credit card. Even your online banking at Scotia is risky!
Do you lose sleep thinking that someone will hack your Visa Card??? Whatever level of "risk" you attach to your credit card - do the same for Cryptocurrencies x 2. And invest as I did: small, out of curiosity and for learning.

In reply to pelon

Yes. This is why I only have a debit card. Is my Bitcoin FDIC insured?

In reply to nick2020

No comment.
No. Nor should it be. It is a decentralized currency - a digital asset - independent of any central bank - and that is more of a benefit than risk.

Summary: Cryptocurrencies is still in the wild wild west stage, even though it already has a robust, if not mature ecosystem and it is becoming more accepted globally - even at merchant level. The trust factor, that which is critical to any currency (digital or hard), is the last hurdle before it cements itself. My personal belife is that it will morph more into a commodity, moreso than "currency"

The early prospect of making money from Bitcoin will fade, as the currency stablizes against market demand. The rocket trajectory will flatten much closer to a 1-1 ration than the 1-900 current boom... but the other benefits of a de-centralized currency hold well in the future, for members of small island states like ours as an alternative to hedging against devaluation without conversion to USD. While I own slightly less than 7 BTC units that cost me aprx. $1400.00 I used little to no hard currency (as stated above) to acquire them - perhaps this model will appeal to you also.

I hope this thread was of use to someone.





[back to my real work now]