Blog

Understanding Cryptocurrency

 

Let’s talk about blockchain, which is the concept behind popular Cryptocurrencies like Bitcoin, Ethereum, Cardano, and Litecoin. Blockchain seems complicated, but its core concept is really pretty simple – it’s a type of database. To be able to understand blockchain, it helps to first understand what a database actually is.

 

A database is a collection of information that is stored electronically on a computer system. Information or data in databases is typically structured in table format to allow for easier searching and filtering for specific information. A simple example for most people to visualize is a spreadsheet, like what you’d use in Excel. The main difference is that spreadsheets are designed for one or a few people to store and access small amounts of information. By contrast, a database is designed to house huge amounts of information that can be accessed, filtered, and manipulated quickly and easily by any number of users at once. In either case, data is traditionally housed/stored in a centralized location.

 

This helps us imagine a starting point, but how is blockchain different from a database? After all, a database isn’t a new concept, and blockchain is a new technology. One key difference is the way the data is structured. A blockchain collects information together in groups, also known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are chained onto the previously filled block, forming a chain of data known as the “blockchain.”

 

All new information is put into a newly formed block that will then also be added to the chain once filled. And one of the main benefits of the blockchain are the secure aspects of it. It's complex, but essentially, it builds linear blocks that are difficult to change because of the decentralized nature of it – there is no top-down control. The reason that this is so important is that cryptocurrencies – like Bitcoin, Cardano, Litecoin or Ethereum, are decentralized networks based on this blockchain technology.

 

The blockchain serves as a distributed ledger enforced by a global network of computers which is used to keep an online ledger of all the transactions. The reason that this is so secure is that every new block generated on the chain must be verified by each node.

 

Blockchains are highly secure, but other aspects of a cryptocurrency ecosystem, including exchanges and wallets, are not immune to the threat of hacking. In Bitcoin's 10-year history, several online exchanges have been the subject of hacking and theft. So, there are still some concerns around parts of the security, but blockchain itself is a secure and fascinating technology.

 

The information is provided for educational purposes and not investment advice. Cryptocurrency is very risky and can cause loss of principal.

 

 

Most Recent

Lineweaver Wealth Advisors enters the top 20 in the Crain's 2021 List of Registered Investment Advisers

Posted By Lineweaver Financial Group
June 09, 2021 Category: General, News, Awards, Crain's, Investment. Advisers

We are humbled and excited to share that we have been ranked in the top 20 of Crain’s Cleveland’s annual list of Registered Investment Advisors based on assets under management. We were especially excited to move up on the list, after ranking in the top 25 in 2019 and 2020. While this is a great milestone and accomplishment for us, we know that there are really two reasons for it: a great staff, and client trust. Our staff work hard and go the extra mile for clients, and in turn clients trust us, and use us as a valued sounding board, as well as introduce us to their family and friends. To us, there is no higher recognition. We also believe in personal service. We know how frustrated people are with phone trees and digital assistants where they have to answer questions, and are often transferred and re-routed. We live in a fast-paced world that requires cutting edge technology and the latest market analysis to make smart, informed decisions for all our clients. But, when it comes to service, we believe in a personal touch. You’ll always speak with a person, and we pride ourselves on getting you answers to your questions in 24 hours or less. For nearly 30 years our team of qualified, experienced, and credentialed professionals has provided our private and corporate clients with a plethora of options for their financial needs. Our success lies with our continued commitment to providing clients with sound advice, world class customer service, and accessib

Want to Defer or Even Eliminate Real Estate Taxes?

Posted By Lineweaver Financial Group
May 17, 2021 Category: Real Estate, Economy, Taxes, Eductional

With real the real estate market at an all-time high, we are going to go over 1031 exchanges, which can help you defer or even eliminate real estate taxes. Simply put, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred. The term gets its name from IRS code Section 1031. But – and this is important – you have to begin this process, and the 1031 must be in place before sell the investment property. Then, from that closing date, the person selling the investment property has 45 days to identify the replacement property to buy and has 180 days to close on the new property. To obtain 100% tax-deferral, the exchanger needs to reinvest all the net proceeds from the sale and replace any debt paid off with either new debt or new cash. Most exchangers buy a property of equal or greater value than the old property. These are often called “like kind” exchanges. Remember, exchanges are very flexible. An exchanger can sell any type of real estate used in a trade or business or for investment and replace it with any type of property used in a trade or business or for investment. You can sell residential property and buy commercial property. You can sell an office building and buy a shopping mall. The rules are very flexible. Let’s say that you bought a property for $400,000 15 years ago, and now it’s worth $700,000. Some people might think you only have to pay taxes on the $300,000 gain

The Return of the Roaring 20s

Posted By Lineweaver Financial Group
April 26, 2021 Category: General, Finance, Educational, Commentary

When we think about the roaring 20s, nearly a hundred years ago, we all think of a decade of growth and celebration! And there were really 2 reasons for that: The end of World War One and the end of the Spanish Flu Pandemic. While we don’t have the end of a major war, we are starting to see the end of the pandemic on the horizon and getting closer to herd immunity. But is that enough to kick off the roaring 20s for us again? First, let’s consider this year so far. We had a solid first quarter: the S&P was up 6.2%, the Dow was up 6.8%, and the US lead the world according to the MSCI. Even the Russell 2000 was up 13% in a sign that small caps are recovering. The driver of much of this growth is the growing vaccine numbers- on April 21st, President Biden announced that over 200 million people have received at least one dose of a Covid vaccine. With herd immunity on the horizon, and the likely lifting of restrictions this spring or summer, it’s no surprise to imagine that a lot of people will be traveling, making major purchases, and generally heading out and celebrating. There does appear to be significant pent-up demand – certainly enough to return to normal, and maybe then some besides. The wherewithal to spend is certainly there. As of February, the savings rate in the US was about 13%- double the historical average! So, consumers do seem coiled for recovery, which would affect travel, leisure, housing, and many other sectors of the economy. P

Categories
General (34)
Newsletter (30)
Economic Commentary (18)
Retirement (15)
Retirement Planning (14)
Letter From The President (14)
Financial Planning (11)
Tax (11)
Lineweaver (10)
Healthwatch (10)
Taxes (8)
Market Commentary (8)
Q3 (7)
Tax Planning (7)
Education Programs (6)
Economy (6)
Market (6)
Finance (5)
Educational (5)
Estate Planning (4)
Social Security (4)
IRA (4)
LFG (4)
Health (4)
Bonds (4)
(3)
Market Review (3)
Insurance (3)
Tax Law (3)
Trump (3)
2017 (3)
Portfolio (3)
Interest Rates (3)
Diversification (3)
Real Estate (2)
Annuities (2)
2019 (2)
Tax Cuts And Jobs Act (2)
Rising Interest Rates (2)
Annuity (2)
Financial (2)
Coordination (2)
Volatile Market (2)
Election (2)
Stocks (2)
Commentary (2)
Social Security Benefits (2)
Charity (2)
Strategies (2)
Investing (2)
HealthWatch (2)
Brexit Update (2)
Q2 Newsletter (2)
2016 (2)
Tax Scams (2)
Financial Strategies (2)
Investments (2)
High Income (2)
Economic Outlook (2)
Market Update (2)
Client Spotlight (2)
Fraud (2)
Q2 2019 (1)
Keeping Your Mind Sharp (1)
Sring Cleaning Your Finances (1)
Congress (1)
Bloodline Trust (1)
Legal (1)
Traditional Ira (1)
Wills (1)
Trusts (1)
Roth Conversion (1)
Chad Roope (1)
Roth Ira (1)
2018 (1)
Cooking (1)
David Baker (1)
Market Outlook (1)
Financial Quarterback (1)
Quarterly Newsletter (1)
Eye Strain (1)
James Lineweaver (1)
Exercising (1)
Vacation Home (1)
Screens (1)
Vacation From Investments (1)
Anne Graffice (1)
Financial Goals (1)
Jim Lineweaver (1)
New Years Resolutions (1)
Healthy (1)
Tips (1)
Q1 (1)
Marital Trust (1)
Pro Football Hall Of Fame (1)
Statements (1)
Charitable (1)
Sell In May And Go Away (1)
Your Retirement Playbook (1)
Stimulus (1)
Nutrition (1)
Steps (1)
Probiotics (1)
2020 (1)
2020Q3 (1)
Medicare (1)
Medicare Supplements (1)
2020Q4 (1)
CARES (1)
Markets Don\'t Pick Sides (1)
Sleep (1)
Healthy Living (1)
2021 Outlook (1)
Eductional (1)
News (1)
Awards (1)
Crain\'s (1)
CARES Act (1)
Black Swan (1)
Stock (1)
Checking (1)
Buy (1)
Sell (1)
Dementia (1)
Review (1)
Credit Unions (1)
Pse (1)
Big Banks (1)
Savings (1)
Banking (1)
Tax Strategies (1)
Longterm Care (1)
Healthcare (1)
Elder Law (1)
POA (1)
Power Of Attorney (1)
In Laws (1)
Donations (1)
End Of Year Taxes (1)
Inheritance (1)
Top Financial Strategies Of The Wealthy (1)
Q3 Newsletter (1)
Policy (1)
Legacy (1)
Retiring (1)
Self Employed (1)
Business Owners (1)
Annuity Alternatives (1)
Life Insurance (1)
Dividend (1)
Bonds Ladder (1)
Roth (1)
Retire (1)
Donor Advised Fund (1)
Private Foundation Charitable Lead Trust (1)
Charitable Remainder Trust (1)
Growing Your Wealth (1)
REITs (1)
Risk Management (1)
Protection (1)
North Korea (1)
Retire Early (1)
Q1 2017 Newsletter (1)
Lineweaver Wealth Advisors (1)
Gifting (1)
Retirement Tips (1)
Financial Advice (1)
Financial Advisor (1)
Social Security Planning (1)
Charitable Contributions (1)
Women And Money (1)
Service Day (1)
Harvest For Hunger (1)
Candidates (1)
Winter 2017 (1)
Politics (1)
Fall 2016 (1)
Financial Health (1)
Holiday Planning (1)
Stockpile (1)
Holiday Gifts (1)
1st Quarter (1)
2016 Market (1)
Conflict (1)
Mutual Funds (1)
Summer (1)
Bruce Motko (1)
Tariffs (1)
NAFTA (1)
Trading (1)
New Tax Law (1)
529 Plans (1)
Charitable Giving (1)
Q2 (1)
New Website (1)
Travel Tips (1)
RMD (1)
Travel (1)
Markets (1)
Drink Water (1)
Market Volatility (1)
Cryptocurrency (1)
Investment (1)
Bitcoin (1)
Advice (1)
Distribution (1)
Reallocation (1)
Expense (1)
Introducing (1)
Costs (1)
401(k) (1)
Equifax (1)
Mark Sipos (1)
2017 Q4 (1)
Identity Theft (1)
Third Quarter (1)
Tax Cuts And Job Act (1)
Kids (1)
Market Pullback (1)
Grand Kids (1)
Tax Cuts (1)
Jobs (1)
Lose Weight (1)
Eat More (1)
Market Review 2017 (1)
Letter From The President New Years Resolutions (1)
Transfer Real Estate (1)
Defer Tax (1)
Investment. Advisers (1)
+ Show More

Terms and Conditions | Privacy Policy | Disclosures

Lineweaver Financial Group ©
Powered by Virteom Logo Virteom