OneCoin – Scam or investment opportunity?

Onecoin Scam or Opportunity.

What is Onecoin?

Onecoin is an Multi  level marketing scheme that claims to have developed a digital currency platform superior to Bitcoin, It is a fintech company aiming to be a global leader in digital currency payments. It utilises a familiar pyramid structure  of building an affiliate network that recruits others to buy into the scheme so they can make commissions on those sales. If their own numbers are to believed they have built an impressive network and have a market capitalisation  second only to Bitcoin.

The story according to Onecoin all sounds great but unfortunately has little basis in reality. The core problem is that the currency only exists within the company and has no real world purpose or value. Unlike other cryptocurrencies it is not traded on open markets, has no private wallet, public blockchain, technical documentation or open source code that can assist in backing up any of its claims.

Why do we care?

Recently Onecoin is increasingly being promoted in our local area. We have been aware for sometime that this is not your typical cryptocurrency and have shared some stories on our facebook page. As we have maintained an interest in all aspects of the blockchain revolution for some years we hope that sharing our thoughts and knowledge on the subject might assist some people to further examine the claims made in these presentations so that they can make a more informed decision before investing their money.

Why do we think it is a scam?

Onecoin’s business model preys on the fact that most people do not understand the details of how blockchain and digital currency technologies work. When you buy into the network you are paying insane amounts of money for educational packages that must be designed to brainwash and misinform judging by the levels of knowledge and avoidance of facts displayed by most Onecoin supporters.

Amazingly on Onecoins only market xcoinx.com  its value only ever goes up even as they increased the total limit of coins from 21b to 121b.  Prior to it being shutdown pending the IPO they publish the value of a coin to be over 7euro however it only has the buying power of 10-50cents on their own ecommerce platform which really just lets you buy more packages of hype. These simple facts alone should tell anyone with even a cursory knowledge of how markets work how ridiculous their claims are.

They will argue that they are not a Ponzi scheme as they are actually selling something of value but even this would seem to be a dubious claim. If someone wants to educate themselves on this subject then a few mouse clicks and a lot of reading will provide real information for free. The only reason I can see why people buy into it is the promoted belief that the tokens you receive with your package (that allow you to ‘mine’ Onecoins) will one day make you rich as they predict the coins will continue to rise in value over the next few years. The more you spend the more ‘Ponzi tokens’ you receive.

A simple google search just on ‘onecoin’ will reveal a plethora of articles regarding bans and investigations into the company practices around the world.  Leading cryptocurrency experts and publications that have commented on this matter come to the same conclusion. The defensiveness of the onecoin affiliates is disturbing and the desperation in their words should be a red flag for anyone doing their due diligence before handing over hard earned cash.

If Onecoin ever does become bigger than bitcoin and reaches the heights of facebook and so forth then it will at some stage have to legitimise itself and trade on open markets. If this ever occurs there will be a much safer opportunity to profit from it as then a fair market value will be realised which is likely to be far less than the current manipulated value. It can then be freely traded for fiat or other digital currencies instead of its current state of being pure hype and promise.

I do not intend to cause offense to most people promoting this vapourware. They are incentivised to sell these packages to others and although not necessary it is their only real chance of getting some return on investment at this point. Unfortunately good people get caught up in the idea of the ‘next big thing’ and to a large degree they are right blockchain technology is exactly that but I do not see Onecoin as part of that future.

For more detailed information regarding the onecoin scam this article provides an excellent overview

Buyer Beware! The Definitive OneCoin Ponzi Exposé

 

Posted in Crypto Currency

Bitcoin – The year in review

Bitcoin

Bitcoin 2016

Bitcoin just fell just short of the $1000 USD mark at years end but it broke through the barrier on the first day of 2017. It has been an another awesome year for investors more than doubling in price. Unlike last time it hit such heights late in 2013 this time it fells more genuine and inspired by real growth instead of just hysteria that sent the price too high too fast.

Bitcoin 2016

Bitcoin’s growth.

Some factors I think may have contributed to this years growth.

  1. China’s continued devaluation of the Yuan.
  2. Concerns around the state of the global economy and USD.
  3. Government wars on cash such as witnessed recently in India and now being discussed here.
  4. Venezuela hyperinflation
  5. Ethereum a rising star in the digital currency world suffered many setbacks resulting in trust issues which turned peoples attention and money back to Bitcoin.

Issues facing Bitcoin

It’s most pressing issue to date is to do with blocksize limitations that effects transaction times and scalability. These problems can be resolved but the decentralised nature of Bitcoin ensures that consensus is always difficult. Personally I do not see this as a great problem and prefer to see it focussed  as a trusted repository of wealth and a replacement for global currency transfers similar to the swift system today. There are many other digital currencies that can better handle day to day and smaller transactions efficiently.

Whats ahead for 2017.

It is always hard to be sure especially with all things Digital it could go to $0. Although to date it has remained secure that could change. Having said that if it continues to maintain its track record then it will only become more popular and easier for people to use. There will never be any more than 21 million Bitcoins once they are all mined. If popularity continues to grow then it makes sense that the price will continue to rise and longer term predictions of 10,000 USD and above are certainly not out of the realms of possibilities.

Bitcoin and other forms of digital currency are on the precipice of mainstream adoption. They will start impacting all our lives in the very near future. I would advise anyone that wants to listen to get yourself a stake in this future. Most analysts I have read that are friendly to digital currency recommend 5-10% of an investment portfolio in digital currency with 80-90% in Bitcoin and the rest in a few others like Ethereum, Monero and DASH

Owning Bitcoin

There are many ways to own and store digital currencies and although some care needs to be taken as some are less secure than others it really is a lot easier than many people realise. I won’t expand further on these at the moment and will do a post on this sometime. It is also important to note that you do not have to buy a whole bitcoin they are divisible to 8 decimal places so you can purchase any dollar amount you like. If you are interesting in exploring the possibilities of owning digital currencies but unsure how to proceed then get in touch with us for professional advice.

Disclaimer: We are technologists not investment advisors and whereby we are fans of digital currency we do not intend our comments on this matter to be construed as investment advice.

 

 

 

 

Posted in Crypto Currency

Beginners Guide to Bitcoin and other Cryptocurrencies

Bitcoin Logo

FNQ Computers offer in depth training in safe use of Bitcoin and other Crypto Currencies so we published a basic introduction for the uninitiated.

What is Bitcoin?

Bitcoin came into existence in 2009 as an open source, peer to peer decentralised payment network or cryptocurrency. It has no central control such as a bank but instead relies on a distributed network of computers to maintain a ledger of all transactions which is called a blockchain. Bitcoin can be used to buy and sell goods and services online and increasingly in the physical world as well.

A user of Bitcoin has a wallet which stores the coin so it is as simple as sending coins or tiny fractions thereof from one wallet to another. Once received in your wallet you can store, trade or convert back to dollars. Although fees for trading bitcoin are small other fees normally apply for converting dollars to bitcoin and vice versa. Maintaining ones own wallet effectively gives the user the power of a bank on the bitcoin network.

The Blockchain.

Regardless of the success or failure of Bitcoin and others the blockchain has proven to be a more secure and efficient means of storing and exchanging stuff on the internet. Many projects around crypto currencies today are not really about currency exchange but are focussed on other forms of storage and exchange such as smart contracts and secure decentralised data storage. Leading global banks have been looking into blockchain technology and how they can integrate it into their systems to enable efficiency and security improvements and  recently conducted tests of interbank trading utilising Ethereum and its blockchain technology.

Popular Crypto Currencies

BTC-LTC-DOGE

Our Top 3 easy to buy, trade and store cryptocurrencies.

1. (Gold) BitCoin the best known and most commonly used digital currency. It currently has a market capitalisation of $6.5Billion.

2. (Silver) LiteCoin has been around since the early days and although overshadowed by Bitcoin it has maintained value, grown in acceptance and does have some enhancements over Bitcoin such as faster transaction times.

3. (Bronze) DogeCoin started as a bit of a joke or a meme coin but built up a popular following and although has failed to take it’s believers ‘to the moon’ as yet it has persisted as one of the more commonly used coins.

Some other popular currencies are focussed on using the blockchain technology as a basis for transferring and storing assets other than currency. Ethereum and MaidSafeCoin have received some recent attention and significant increases in their market capitalisation. Currently it is 320million and 23million USD respectively. Although it is likely this technology will  impact many areas of our lives it is only early days and they are  experiments that could fail.

With that said it is possible to see a big upside potential for these and other projects if industry adoption comes to fruition at some stage. Just as we all  would have loved to fill our wallets up with $3 Bitcoins a similar opportunity may exist today with some of its alternatives.

For a list of coins including price information visit coinmarketcap.com.

Risks of Digital Currencies.

Storing and exchanging value in digital form is risky business. Some of these risks are out of  any individuals control but most can be mitigated against using  secure practices in handling digital assets. Cold storage and paper wallet techniques are the safest methods for storing digital currencies and if trading in these currencies then would recommend only keeping what you need sitting in cloud based trading platforms or wallets at any time.

Computer hard drive failure accounts for many lost coins but this risk can be diminished with good backup procedures and storage of copies of your wallet data. Wallets should always be encrypted so then you can safely store copies of your wallet in cloud storage and other locations. Most of the security scandals that have erupted around Bitcoin over the years have been related to these cloud based platforms and wallets being hacked and thieved of their balances.

Why Invest in Crypto Currencies?

Disclaimer: We are technologists not investment advisors and whereby we are fans of digital currency we do not intend our comments on this matter to be construed as investment advice.

Investing in Bitcoin and other digital currencies is not for the faint hearted. It is risky on many levels and comes with no guarantee that they will retain any value. However in a world where financial markets seem to be spinning out of control with measures such as quantitative easing, negative interest rates and bail-ins now part of our financial landscape it is possible that alternatives to existing currencies could benefit from increased havoc in the traditional markets and economies.

This was evident during the Cyprus banking crisis when Bitcoin skyrocketed to over $1000US per coin and similarly has seen steady gains since late last year as investor panic seemed to set in on world financial markets. With only around 15million Bitcoin available at this time scarcity is assured and if demand increases then the price should reflect this. Bitcoin is currently trading at about $44o USD per coin. As the coin itself is divisible down to 8 decimal places it can be bought in much smaller portions than a full coin.

Today it possible to have a Visa debit card usable at any ATM that is linked to an account of Bitcoin instead of currency in the bank. This could lead to a greater use of Bitcoin in the general population and enables any retailer with eftpos facilities to effectively accept Bitcoin as a form of payment. With many exciting projects around the blockchain that could redefine the way in which we securely trade and store anything of value on the internet we are predicting a big future for cryptocurrencies and related blockchain technology but the reality is that the most successful of these to emerge in the future may not even be developed yet.

If you are considering a position in this market but don’t know where to start you can contact us and we will try to answer any questions you may have. For those that see the benefit of diversifying  a small portion of their investments in this space and are prepared for the risk then the potential rewards could be huge.

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Posted in Crypto Currency

FNQ NBN

nbn_logo

As much as the NBN is a welcome relief for many in the area and will assist regional development unfortunately I fear it could fall short in providing North QLD with effective future proofed telecommunications services.

NBN promised us a level playing field but I fail to understand how they can make this claim when they only provide services to your local Point of Intersect (POI) which for us is Cairns. This means that the ISP has to get the data from the POI to the Point of Presence (POP) the closest being Brisbane.

There is very limited capacity of fibre between Cairns and Brisbane with little competition and high prices for those services. Therefore it is natural to conclude that ISP’s will have to sell the same bandwidth many more times over than they would in an area with access to more capacity and competition. This could adversely affect the quality of the service over time as has been experienced by users of the NBN interim satellite.

Our local levels of bureaucracy appear asleep at the wheel and are happily ignorant of all things involving technology preferring to sing its praises than assess its worth. As we become increasingly dependent on technology I believe it is important that they take time in understanding and addressing related issues.

If NBN are serious about creating a level playing field then they should be carrying our data all the way to Brisbane and shame on our local bureaucrats for not holding the Government to account over this.

Posted in NBN, Technology

Investing in Bitcoin

bitcoinaccepted

Current economic market turmoil has increased interest in Bitcoin and other crypto currencies. Many well informed investors are warning of economic catastrophe for this year. If they are right then a good case can be made for the  increase in demand for alternate currency as witnessed in the Cyprus banking crisis.

Along with precious metals digital currencies could have huge upside potential in the not to distant future especially if the economic crash that many predict comes to fruition.

Numerous risks exist when investing in bitcoin and other digital currencies.  Price volatility, cyber theft, computer crashes, system flaws, government regulation and community disharmony are all serious issues that could spell disaster for personal holdings or the value of the currency itself.

Blockchain technology (the building blocks of digital currencies) is set to transform the way we move money and other assets around the globe. It has the potential to be the basis of how we trade everything from music and movies to houses and land in a digital economy that has exposed many of the weaknesses of traditional currency exchange.

There are ways to buy and store digital currencies that eliminate many of the inherent risks that have seen investors lose their holdings. Cold or offline storage is the safest way to secure your investment and we can provide these services through our cold storage facility.

If you want to know more about how you can securely invest in Bitcoin or other digital currency then contact us today for an obligation free chat about this emerging market that might help protect your financial future.

Disclaimer:

We are not investment advisors and do not intend this post to be investment advice. We advise all readers to research the subject themselves before considering investing in digital currencies.

 

 

 

Posted in Crypto Currency, Technology

We Have Moved!!!

FNQ Computers

FNQ Computers and Prime Technology Services have moved to our new premises located at 2/36 Mabel St Atherton

 

 

Posted in Uncategorized

Atherton Free Wi-Fi

Atherton Free Wi-Fi

Free Wi-Fi is now available in Atherton CBD thanks to an initiative of the Atherton Chamber of Commerce, FNQ Computers and other participating local businesses. Any local businesses interested in knowing how they can contribute and benefit from this initiative are invited to contact the ATCC or FNQ Computers.

Posted in Technology, Wi-Fi

A day on the Green @ Irvinebank

Leanne Tennant

Well done to all involved in what was a great day at Irvinebank. The weather was fine the music was great and the beer cold what more could you ask for.

Posted in Art, Music

Art Exhibition in the “Tablelander”

FNQ Computers Art Exhibition

The recent art exhibition we held for Steve and Marijke Hancock has been featured in an article and front page photo in the local paper “Tablelander” (July 29th) including an in depth article (on page 4) regarding the art of Steve and Marijke and the exhibition opening held here on the 18th of July.

Posted in Art

Art Exhibition

Art Exhibition

FNQ Computers held it’s second art exhibition at our premises on the evening of Friday the 18th of July for local artists Steve and Marijke Hancock. It was a well attended event which evoked much praise for the art on display. The display will remain until Mid August and all are invited to drop by and view it. The artwork is for sale and a price catalogue is available.

Some comments from those attending the exhibition:

“Wow! You have the colours just right. What a gift you both have!!”
“Incredible eye catching!”
“Beautiful! I got lost in your use of colours.”

Art Exhibition

Art Exhibition

exhib5

Posted in Art

Bitcoin Price

Ethereum Price

Where to find us.

2/36 Mabel St Atherton QLD 4883 Phone: 0740914600

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