Table Of Content
- Official Website
- Key Person
- Symbol and short form
- History, Creation & Development
- Mining Process and Requirements
- Growth of Price with Chart: Compared to GBP, EURO, USD and Naira.
- NEM Supply (Circulating and Total)
- How & where to Trade, Earn with NEM
- Crypto Currency Services
- Associated Risks
- Are Crypto Currencies Legal & Taxed?
- On a Final Note
OFFICIAL WEBSITE OF NEM (XEM):
The official website of NEM crypto currency is: https://nem.io
NEM is the acronym for a group called the New Economic Movement and their objective is to develop a thriving and open digital economy that’s outside of the realm of current powers. The cryptocurrency is NEMCoin and it’s planed on building a “new economy based on the principles of decentralization, equality, financial freedom and solidarity.” It’s another large altcoin in the crypto space with the integration of proof-of-importance (POI) algorithm, multisignature accounts, encrypted messaging, and an Eigentrust++ reputation system.
March 2015, NEM launched her blockchain platform (NEMCoin) and has a stated goal of a wide distribution model. The NEM blockchain software is used in a commercial blockchain called Mijin, and it’s being tested by financial institutions and private companies in Japan and internationally.
THE PERSON(S) BEHIND NEMCoin
The crypto currency is proposed by UtopianFuture; the pseudonym of the individual or people behind the cryptocurrency.
SYMBOL AND SHORT FORM
The short form of NEM is (XEM)
While the SYMBOL is the image below:
HISTORY, CREATION & DEVELOPMENT
NEMCoin blockchain was launched in March 2015, but the history NEM was started by a Bitcoin Talk forum user called UtopianFuture who was inspired by NXT. The initial plan for NEM was to create a fork of NXT, but this was eventually dismissed in favor of a completely new codebase. Starting on January 19, 2014, an open call for participation began on the Bitcointalk forum. The goal of the call was to create a community-oriented cryptocurrency from the ground up. The NEM project was not a legal entity at the time, though there have been recent efforts to change this. Stakes of NEM were to be distributed to those who contributed to the project in amounts of 2.25 Million XEM. As the project evolved, people were able to redeem the stakes they had paid for. As NEM was not a legal entity, there was an uncertainty if the people running the redemption would leave. As a result, an 8-month deadline was created. All unclaimed funds were decided to be put aside for the development of NEM.
The Alpha version was released on June 25, 2014. Subsequently, the Beta production version was launched on 20 October 2014. NEM launched its first stable release version on March 31, 2015. The next large update to the NEM ecosystem will be called Catapult. It was originally estimated to be released in Q1 2017 but has since moved to Q2 2017 for the release of its alpha version. (Source: Wikipedia)
MINING PROCESS AND REQUIREMENTS
NEM (XEM) is a minable crypto coin. NEM uses a new and improved consensus method called POI that is ultra-light and energy efficient. It uses the Proof of Intelligence algorithm protocol, unlike the the other cryptos that use Proof of work (POW) eg. Bitcoin, Dogecoin etc or Proof of stake (POS). It’s POI system does not only rewards those with a large account balance, but also takes into account how much they transact to others and who they transact with.
This means that those who actively help the economy and therefore will benefit from NEM, meaning the right people, are rewarded. Each user is given a trust score, the higher it is, the more chance they have of being rewarded.
Furthermore, this will mean much more even wealth distribution; anyone who contributes can gain extra XEM (the currency of the NEM network). NEM is great because it gives similar opportunities to everyone. The main aim is to empower regular people.
POI is the algorithm used by NEM to time stamp transactions. The POI algorithm is an alternative to P. O. S. (Proof of Stake) and P. O. W. (Proof of Work) types. P.O.S. enables stakeholders to secure the network while P.O.W. enables miners to secure it. Nem’s proof-of-importance is used to determine who will calculate the next block. A Nem user becomes important through how many coins they control and the amount of transactions they make.
POI is different from other algorithms, which use a fee-sharing model that does not reward one’s overall support and contribution the network. In some proof-of-stake systems a person only needs to have large amounts of coins to form a block; however, in NEM the transaction amount as well as support of the network become a factor. This has been designed to encourage users of NEM to not simply hold NEM but instead actively carry out transactions within the NEM ecosystem.
GROWTH OF PRICE WITH CHART: COMPARED TO GBP, EURO, USD AND NAIRA.
NEM (XEM) has grown tremendously over the years and as at today the 9th of October 2017. We have these values:
GBP (1 XEM = £0.14702996)
EURO (1 XEM = €0.16476964)
USD (1 XEM = $0.19605)
NAIRA (1 XEM = ₦69.82)
NEM (XEM) SUPPLY (CIRCULATING AND TOTAL)
Source: coinmarketcap.com Today 9/10/2017
HOW TO TRADE NEM & WHERE TO BUY NEM, EARN WITH NEM (XEM)
You need to know that there are many ways to earn with NEM; there are also many trading platforms where one can trade NEM.
To earn with NEM (XEM);
- One can buy and Hold the coin (To hold means to buy at a cheaper rate and wait for price to increase, then, one can sell and make some gains)
- One can also buy and exchange with local currency, whence, dollar rate fluctuate against ones local currency, then one will make some gains too.
Below are the markets where one can trade NEM:
CRYPTO CURRENCY SERVICES
To get information and monitor crypto currencies, there are avenues and websites offering such services. For instance;
CoinMarketcap is a very convenient and excellent way to check on the market capitalisation, price, available supply and volume of crypto currencies.
Reddit is a great way to stay in touch with the community and follow trends.
CoinWarz is a website for miners. This site can help miners determine which coin is most profitable to mine given their hash rate, power consumption, and the going rate of the coins when sold for Bitcoins. You can even view each coins current and past difficulty.
Liteshack gives visitors the avenue to view the network hash rate of many different coins across six different hashing algorithms. They even provided a graph of the network’s hash rate so you can detect trends or signs that the general public is either gaining or losing interest in a particular coin.
THE RISK OF INVESTING IN CRYPTOCURRENCIES
First and foremost, be aware that this is a hugely speculative investment. There are a host of cryptocoin vulnerabilities that you need to be aware of. Hackers have gained unauthorized access to digital wallets and cryptocurrency exchanges. As recently as 2016, more than $50 million in Ethereum was stolen from investors in a fund known as the DAO.
Also, cryptocurrency market prices are often highly volatile. The DAO hack previously mentioned caused the price of the cryptocurrency, Ethereum, to tumble, leading to a violent market correction. Such events can be notoriously hard to predict and following the pulse of the digital currency community can be a daunting task to any investor.
ARE CRYPTOCURRENCIES LEGAL & TAXED?
In the United States, the IRS has ruled that Bitcoin is to be treated as property for tax purposes, making Bitcoin subject to capital gains tax. The Financial Crimes Enforcement Network (FinCEN) has issued guidelines for Cryptocurrencies. The issued guidelines contain an important caveat for Bitcoin miners: it warns that anyone creating Bitcoins and exchanging them for fiat currency are not necessarily beyond the reach of the law. It states “A person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter.”
Miners seem to fall into this category, which could theoretically make them liable for MTB classification. This is a bone of contention for Bitcoin miners, who have asked for clarification. This issue has not been publicly addressed in a court of law to date.
While cryptocurrencies are legal in most countries, Iceland and Vietnam being an exception – Iceland mainly due to their freeze on foreign exchange, they are not free from regulations and restrictions. China has banned financial institutions from handling bitcoins and Russia, while saying cryptocurrency is legal, has made it illegal to purchase goods with any currency other than Russian currency.
ON A FINAL NOTE
Investing, Earning and Trading in CryptoCurrency may have the potential for a rewarding return. But I can tell you from experience when you see such volatility, press coverage and your neighbors start giving you advice on when to buy and sell, it’s probably a good idea to pump the breaks.
Investing in Crypto and trading is a very new market. It requires specialized knowledge that may be inscrutable to the uninitiated. Rampant growth has led to volatility. And while it may seem attractive to invest in digital currencies, this brand new field does have some instability to consider before investing. As with any new investment, be sure you weigh the risk and reward so you can make the right choice for your situation.