Is qoin digital currency a good investment?
Details were emailed to me today from an old contact. Is anyone able to shed some light on digital currency such as qoin and its liquidity? For instance, if you get paid with it can you readily spend it? Can you cash out qoin into AU$ readily?
I can’t speak to Qoin as I’ve not previously heard of it. However, as @Keith Rowley mentioned there are risks with digital currencies.
- Track Record - it may not have enough proof to be a lasting method of exchange. If you start accepting it, what happens if it disappears tomorrow? Can you still cash out?
- Investment - most digital currencies are not protected the same way Stocks, Bonds, and Mutual Funds are. Digital currencies are also not protected the same way that Checking, Savings and CDs are at Banks (think FDIC in US).
- Manipulation - because digital currencies are not protected they are considered speculative. This means the value can fluctuate wildy from day to day. You could have a huge profit one day and have lost a lot of that value by the next morning. This makes financial planning and forecasting really difficult.
- Security - because digital currencies are prone to manipulation, you need to be extra cautious if you decide to pursue this. Additionally because so many “Digital Wallets” were more concerned with being first to market, most had little or no security in place to protect their customers assets (again they weren’t providing the same level of security as banks or investment brokerages).
- Taxes - because digital currencies can fluctuate wildly and you can experience huge gains, you are likely liable for additional taxes on the gain if the value goes up. If you don’t report the asset, you may be putting yourself in the cross-hairs for being aduited as well.
Lastly, I don’t know how to triage chargebacks or refund disputes with digital currencies, so just speak with people who can ensure you are informed and well protected from risks before adding it to your business arsenal.
Depends what you eman by 'safe'. I don't know the details of how Quoin is backed, but in principle, being backed by a finite resourse means that it can't be inflated to low values -that was the wau currencies were backed before the gold standard was abandoned for fiat currencies, which are backed essentially by confidence. Quoin uses clockchain tech to secure and record transactions as does Bitcoin - but despite that, a Bitcoin exchange was hacked recently, costing investors millions - and no government guarantees exist. I've now exhausted what i know about cryptocurrencies I'm afraid.
The fact that you are asking indicates that you are aware of the risks of digital currency. That being the case, you need 2 things: a) Motivation to invest in a digital currency and b) A comparison of the benefits and risks of each of the major digital currencies - Quoin is new. Having said that, here's one comparison BitCoin, a longstanding eCurrency is limited in supply by the fact that special numbers, each unique, have to be 'mined' by computers and it takes hge resoucres to find one. Quion on the other hand claims to be backed by real goods and services in a merchant ecosystem - much as the old pound and dollar were backed by gold. Hope that helps. Big subject!
I figured it might be new and that's fine, I was unable to figure out how it was going to work reading through the website with all the hype and pitch.
If it was a simple thing of buy in cash, use it and its value goes up as you use it more, then that could be interesting, but like so many things you need to be able to use it. If I have $10 in cash and $10 in Bit money I want to be able to spend either and spend it with ease.