Tony Robbins Uses Personal Blog To Explain Bitcoin To Consumers
The trouble with investing in the cryptocurrency industry this year has been primarily a lack of information. There is plenty of people that are investing in the industry already, but consumers that lack knowledge of bitcoin and the rest of the industry tend to resist investing more. Tony Robbins acknowledged the shared problem on a Twitter post today, on December 30th, 2018.
The post said,
“What the heck is bitcoin, and how does it work? Find out here.” His post links directly to his personal website, where the New York Times #1 best-selling author described the information that consumers need to know about Bitcoin. He calls Bitcoin a “brand new concept,”
Noting that the lack of understanding is primarily due to the lack of information.
He starts off simple, with Bitcoin being categorized as a crypto-currency. He explains the concept of a cryptocurrency, adding,
“The value of bitcoin fluctuates wildly based on supply and demand and its perceived value.”
The blog notes that the current value is $9979 for Bitcoin, though that is a sign that the blog is fairly old, considering that the last time Bitcoin held that value was over a year ago. Today, as of 5:45pm PST, Bitcoin is priced at $3,845. Robbins notes that Bitcoin is limited in its supply, since no more than 21 million Bitcoin will ever be created.
Next, Robbins takes on the blockchain, explaining that the record of every transaction is held on this public ledger. Elaborating, the article said,
“It’s a little like solving a riddle in a computer game that then reveals a part of the game that was previously inaccessible. In return for solving those problems, the computer’s owner receives bitcoins. The mathematical algorithm adjusts in level of difficulty so that bitcoins are not released into the world too quickly. This process is known as mining.”
He says that anyone with a computer and the ability to “solve an algorithm” can mine tokens. Miners have increased through the last year, and miners receive rewards for validating transactions. Robbins also notes that Bitcoin is different from past currencies in that it is decentralized.
A decentralized currency is run by the people on it, rather than a single entity. Accounts can never freeze, a central power cannot alter the value, and it can be used anywhere. At the time of the article, Robbins formerly said that these digital assets cannot be taxed. However, an editor’s note says,
“In the U.S. bitcoin is currently taxed as a capital asset. Miners who produce bitcoin must declare the fair market value of their digital currency on the day it was mined as income, as do contractors who are paid in bitcoin.”
The article concludes with pondering the reasons for Bitcoin showing up in the news lately. However, since the article, the industry now knows that there are plenty of reasons that Bitcoin has been in the news, including the volatility, the thefts, and the current debate over the true bottom price. However, he ends on this note:
“If bitcoin adoption continues to grow, the financial structure as we know it will be altered — but no one still really knows how.”