- 3:01, 6 Apr 2022
- Updated: 3:01, 6 Apr 2022
SOME of the world’s highest crypto investors are set to hit Miami this week for the 2022 Bitcoin conference.
The Bitcoin conference is being held at the Miami Beach Convention Center from April 6 to April 9.
More than 6,000 industry leaders, 80 different speakers, and more than 4,000 companies are set to take part, according to the conference.
A “Bitcoin-style Shark Tank” has also been advertised, along with the “world’s first Bitcoin music festival” to close out the event on April 10.
Read our Bitcoin 2022 live blog for the latest news and updates…
Crypto investor death mystery
A new documentary on rogue crypto trader Gerald Cotton, who took up to $215million in Bitcoin and other digital currencies to his grave, has sparked rumors he may have faked his death.
Cotton’s sudden death from complications of Crohn’s disease at age 30 shocked the crypto world – but some believe it may have been part of an elaborate “exit scam”.
One source in the documentary goes as far as to claim Cotton may have used a substance known as “Haitian zombie powder” to fake his death.
Crypto losses and tax benefits
Investors can claim deductions on cryptocurrency losses that can lessen tax liabilities or result in a refund, according to Coindesk.
Any losses can be used to offset capital gains, and if you have no gains, you can claim a deduction.
The Coindesk article explains the IRS code and other ways to put cryptocurrency losses to work.
What is fiat?
If you’ve ever seen the word fiat used in the cryptocurrency world, know that it was not in relation to the car brand.
Fiat is a term used to refer to government-issued currency.
Cryptocurrency, or virtual money like Bitcoin, is not backed by governments or standards typically associated with fiat, which is why investors warn of crypto’s volatility.
The most valuable cryptocurrencies
Cryptocurrency prices hit record highs earlier last year amid interest from high profile individuals such as Elon Musk and more institutional investment in the sector.
The most valuable coins are Bitcoin and Ethereum but there are lots of alternatives or altcoins aiming to benefit from crypto interest.
Values can be volatile though and regulators have warned that investors could lose all their money.
Risks of investing in cryptos, part five
Finally, the truth in marketing materials is a risk in investing in cryptos.
Firms may overstate the returns of products or understate the risks involved.
Risks of investing in cryptos, part four
Another risk of investing are the charges and fees.
Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
Risks of investing in cryptos, part three
A third risk of investing in cryptocurrencies is product complexity.
The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks.
There is no guarantee that cryptoassets can be converted back into cash.
Converting a cryptoasset back to cash depends on demand and supply existing in the market.
Risks of investing in cryptos, part two
Another risk of investing is price volatility.
Significant price volatility in crypto assets, combined with the inherent difficulties of valuing crypto assets reliably, places consumers at a high risk of losses.
Risks of investing in cryptocurrencies
We rounded up five risks of investing in cryptocurrencies.
The first is consumer protection.
Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
Will America ban crypto?
The US is not one of the countries that are looking to fully ban cryptocurrencies – at least not yet.
In fact, Federal Reserve chairman Jerome Powell said in the fall that there are no intentions of banning cryptocurrencies including Bitcoin.
Meanwhile, reports in the media suggest that President Joe Biden is planning to issue an executive order that will advise government agencies to take a look at cryptocurrencies and currencies from the central bank.
Currently, it’s unclear what exactly would come out of that.
Odell Beckham Jr’s experience with Bitcoin
NFL superstar Odell Beckham Jr signed a midseason deal with the Los Angeles Rams worth $750,000 disbursed entirely in Bitcoin – the deal was inked when Bitcoin was at its apex, over $60,000 a coin.
Over the course of that season, the price sagged to $35,000 a coin, slicing the value of Beckham Jr’s contract almost in half before California taxes took their sizable share.
Last season, Beckham Jr was a hired gun playing on a short-term deal that ended in a Super Bowl victory.
Despite the contract failure, Beckham Jr remains one of the athletic faces of crypto, and will speak at a Bitcoin conference alongside Aaron Rodgers this week.
Why is Bitcoin bad for the environment?
The problem surrounds the amount of energy used to mine a single Bitcoin.
Computers are needed for complex mathematical calculations to put a new Bitcoin into circulation online.
This process is also known as mining.
A lot of energy is needed for Bitcoin mining and some experts are concerned that vast amounts of fossil fuels are being used to create this energy.
Crypto fans are taking to Twitter to express their excitement for what they anticipate to be a mind-blowing event.
Banks embrace crypto
Banks are paying for slowly catching on to the future of cryptocurrency as they struggle to benefit and profit.
As cryptocurrency start-ups explode, they are starting to offer credit cards and loans while banks are left in the dust.
According to the New York Times, “Bank of America’s chief executive, Brian Moynihan, barred the giant company’s wealth managers from putting any client money into cryptocurrency-related investments.”
What is Bitcoin 2022?
“Bitcoin 2022 is the world’s largest Bitcoin gathering featuring the top speakers, sponsors and guest list in the industry,” the conference’s website says.
“The parent company of the conference is BTC, Inc whose mission is ‘propelling the world towards hyperbitcoinization.'”
Sound Money Fest
BitCoin 2022 has a packed concert line-up set for April 9, the last day of the conference.
DJ Steve Aoki and hip-hop artist Logic will be performing, as well as rap duo Run The Jewels and multiple other musicians.
There will also be a comedy hour, where stand-up comedians like Hannibal Buress, Michael Rapaport, and Jay Pharoah are set to perform.
New speaker announced
Bitcoin 2022 announced Tuesday that record-breaking athlete Serena Williams will now be presenting at the event.
The festival will feature an art gallery with a theme called Bitcoin Renaissance.
The gallery will feature at least 60 artists and over 10,000 square feet of gallery space.
The gallery will also feature a live auction for select pieces.
The first day of Bitcoin 2022 on Wednesday is called Industry Day and it is supposed to be a day of collaboration, networking, and learning.
Industry Day will feature over 6,000 Global Industry Leaders, 80 Speakers, 4,000 Companies, and Pitch Day — where Bitcoin startups can meet and network.
How risky are NFTs?
Buying an NFT, like any collectible, is a risky bet on the value going up.
If there is no demand for the NFT you buy then you could end up paying a large amount for something that declines in value or that you cannot sell.
NFTs are still a new market so there is unlikely to be the same demand you will find for other physical items such as trading cards, art or classic cars.
You could also create your own NFT but there is no guarantee of a buyer and you could end up wasting your time and money.
What is an NFT?
Cryptocurrencies are really collections of computer code but coins such as Bitcoin or Dogecoin have recognizable logos.
A non-fungible token digitizes a piece of work such as art or music and turns it into an NFTthat is stored on the blockchain.
That means it cannot be replicated and is unique to whoever owns it.
Crypto commentator Jonathan Marriott said NFTs provide a legitimate way of verifying ownership and tracking the origins of an item.
He said: “An NFT lets you record where and when something is made and track the whole process to verify that it is legitimate.
“The public blockchain element makes it irrefutable. No one can fake it.”
He said medical and food manufacturers could use it so consumers can follow the supply chain so they know where their products are coming from.
Alternatively, an NFT could be created alongside a new trainer so you know if your pair of pricey sneakers are genuine.
What are metaverse cryptocurrencies?
Metaverses are sprawling universes that users access via a computer or virtual reality headset, allowing you to work and play in a fictional, digital realm.
In order to truly become fully immersive worlds with their own economies, they need a currency – and that’s where crypto steps in.
Metaverse cryptocurrencies can typically only be spent in the metaverse they’re tied to. You buy them through each virtual universe’s in-game store.
The coins can be used to buy in-game items, such as land or items which can then be traded with other players.
Like any other crypto on the market, their values go up and down – sometimes unpredictably.
Remember, buying cryptocurrencies and decentralized finance tokens is a risky way to invest.
Why have crypto markets been down?
Twitter’s chief financial officer Ned Segal said at the end of last year that investing in crypto “doesn’t make sense right now”, causing concern among Silicon Valley buyers.
China also announced plans to clean up virtual currency mining, according to CNBC.
Many crypto-mining regions in China are now radically reducing operations.
Previous moves by the country to crackdown on mining and trading of crypto has previously sent markets plunging.
And the unrest in Eastern Europe has contributed to the fall because investors tend to shun risk-sensitive assets during uncertain times.
How are cryptocurrency transactions recorded?
Within a blockchain, a series of blocks containing a timestamp and transaction data exists.
It’s basically a virtual bank ledger, without the formal backing of an actual bank.
A cryptocurrency wallet exists for the purpose of sending or receiving digital currencies.
Cryptocurrency networks exist via computer, which is known as a node.
A node works to support the relevant network through transactions, validations, or copies of the blockchain.
Timestamping is used to essentially prove the validity of cryptocurrency transactions within a blockchain ledger.
There are various methods of timestamping, including proof of work and proof of stake.
What is cryptocurrency?
Cryptocurrency is formally defined by Dr Jan Lansky – a professor proficient in computer science, mathematics, and economics – as a system that meets six conditions:
- The system does not require a central authority
- The system keeps an overview of cryptocurrency units and their ownership
- The system defines whether new cryptocurrency units can be created
- Ownership of cryptocurrency units can be proved exclusively cryptographically
- The system allows transactions to be performed in which ownership of the cryptographic units is changed
- If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them