How Much Should I Regret Not Buying Bitcoin?
How Much Should I Regret Not Buying Bitcoin? Photo Illustration by Elena Scotti/Gizmodo/GMG The first bitcoin transaction ever was by man who bought two pizzas. That arrangement would be worth over a $100 million today. Regret was baked into Bitcoin from the beginning. Last year, somewhat inexplicably, Bitcoins price rose more than 1,000 percent. That number has since dipped, but a single bitcoin is still, as of this writing, worth around $11K. This boom has turned a small number of people into millionaires, modestly enriched a somewhat less small number of early adopters, and sent millions of others into a paroxysm of envy and regret. If youd never heard of Bitcoin, you kicked yourself for not paying closer attention; if youd treated Bitcoin as a joke, you probably still did that. Maybe you recognized right away that it was all unstable and unpredictable and not for you, while also privately daydreaming about how you mightve spent your Bitcoin millions. Of course, for those investors who tried to jump in on the wave when it hit an all time high in December, regret means losing half of your money because you were too late. How mad at yourself should you be for missing out on that perfectly timed investment? Is your lack of foresight here worth regretting? For this weeks Giz Asks , we reached out to cryptocurrency specialists, psychologists, an interfaith minister, and others to help us answer those questions, and guide us through these trying times. Journalist and author of How Money Got Free: Bitcoin and the Fight for the Future of Finance You know that Marilyn Monroe quote, If you cant handle me at my worst, then you sure as hell dont deserve me at my best? The same could be said of Bitcoin. So one reasonable answer is that you shouldnt regret it at allif you werent Continue reading >>
How To Buy Bitcoin: A Step-by-step Guide - Business Insider
Bitcoin hit a record high of $16,623 per coin on Thursday, December 7. Two years ago, the idea of buying the virtual currency even at that price was laughable. After a rapid rise in value in 2013, the cryptocurrency's value more than halved by mid-2015. At its lowest point, one bitcoin was equal to about $230. Given the currency's covert nature, the average person still may not understand how buying and selling actually works. Using the app Coinbase , which lets anyone trade bitcoins for a small fee, we decided to find out. A brief warning: If you're going to do this, tell your bank you're about to buy bitcoin. More on that later. And to read more about blockchain, the technology powering bitcoin, click here . This is what the Coinbase app looks like on an iPhone. When you first open the app, you're presented with the latest price of bitcoin and its change within a certain period. You can see in the chart below how wild the latest moves have been. (We bought the bitcoin in January 2017.) I happen to be one of the many who have never traded bitcoin before. There's a certain level of wariness in buying into the cryptocurrency world. However, Coinbase's interface makes it simple to enter the basic personal information it needs to create your account. User-friendliness quickly hit a snag. When I put in my address, the app didn't recognize I had already selected it from the autofill menu. I couldn't proceed unless I switched to the desktop app. So switch I did. From the desktop portal I could easily enter more identifying info. The final step before entering my financial information was two-step verification for security, which Coinbase quickly sent to my phone. I decided to give the app another try and opted to use my debit card to buy the bitcoin. Entering all my informat Continue reading >>
Buying And Selling Bitcoin, Explained
A quick and dirty introduction to trading the worlds most exciting cryptocurrency. Before you jump into this overview of how to buy and sell bitcoin, check out our first article in this series, Bitcoin, explained . Mining bitcoin isn't the only way to get your hands on the stuff, you know. In fact, mining bitcoin is a complete pain in the buns. At a minimum, you need specialized software, a sophisticated hardware rig to run it and a considerable amount of electricity to power the whole thing. Really, the simplest way to amass bitcoin is to just buy it. Of course, that's something of a process in and of itself. Before you're ready to ride the bitcoin rollercoaster, you'll need to establish an account with one of the major exchanges (like Coinbase or CEX), connect a bank account or credit card and transfer money over. That process, which we break down below, should take roughly 10 minutes or so. Unless, of course, an exchange is suffering some sort of outage -- an increasingly (and disconcertingly) common occurrence . Now Playing: Watch this: Bitcoin: A beginner's guide There are many other points of entry into the bitcoin universe, however. You can play day trader and use a regulated exchange like GDAX (which is owned by Coinbase). On the opposite end of the spectrum, you can find someone local willing to trade cash for bitcoins , if you're into meeting up with strangers in parking lots. And if you operate a business, you can accept bitcoin as payment for goods or services. GDAX: where young urban professionals go to trade digital assets. Or you can go the high finance route. On Monday CME Group, the largest derivatives exchange in the world, made it possible to trade in bitcoin futures , opening up another avenue and marking another milestone in the cryptocurrency's ev Continue reading >>
Should I Invest In Bitcoin In 2018? Here Are 4 Things You Have To Know
Should I Invest in Bitcoin in 2018? Here are 4 Things You Have to Know Last updated on November 30th, 2017 at 11:26 am 2017 startedwith a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about 2 emails a day from people around the world who are asking one very simple question: Should I invest in Bitcoin? Before we begin, I want to get something out of the way Bitcoin is not a company or a stock, its a currency. If you still dont understand what Bitcoin is, watch this video . So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin. In order to answer this question the first thing you need to answer is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins ? The most common form of investing in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as hodling, see the origins of the term here ). If this is the case then you need to decide for yourself if you think this is a good time to buy. Meaning, do you think the price will continue to rise. Dont take anyones advice about what will happen with the currency, do your homework, learn about Bitcoin andcome to a conclusion. Personally I believe we are just starting, but thats my own opinion and you shouldnt consider that as investment advice as well. A few pointers for buying and holding Bitcoins: Never invest more than you are willing/able to lose Bitcoin is a very risky investment and you should keep in that in mind at all times. After buying Bitcoins make sure to move them into your own personal wa Continue reading >>
What Reasons Are Left To Buy Bitcoin Today?
What Reasons Are Left to Buy Bitcoin Today? It is difficult to back an asset that is in freefall, but there is still strong reasons to buy Bitcoin during the latest crash. There is little doubting why, in the run up to Bitcoin all time high of $20,000 , people were entering the cryptocurrency market. There was a promise of massive growth, potentially huge returns on investment, and a story already told of missing out as an early adopter. People thus flooded the market, entering for all the wrong reasons, really . However, this created a massive spike in interest and a massive spike in price. Things have changed somewhat now, with Bitcoin heading towards $6,000 rather than above $20,000, and this has caused a huge sell off as investors now flood out of the market. But what reasons remain today for people to buy Bitcoin? The issue was, with this massive spike in interest, that people were throwing money at something they did not understand in the hopes of making a profit. It sounds familiar because it happened before. The dotcom boom has predicated around similar happenings. People jumped on the bandwagon , not knowing why, and built a huge market on a flimsy base . Those who are not so technologically inclined may have shunned understanding Bitcoin as a new wave of technology, and used that as an excuse. But then still, as investors, they should at least be savvy with their assets. In comparison to stocks and bonds, Bitcoin does not hold much water as a good investment asset , especially when considering long-term capital appreciation. True, Bitcoin has increased its value substantially over time, but it lacks a few other facets. In stocks, an investor stakes a claim in the company's net assets, and as the value of the company rises over time, so does the equity. In bon Continue reading >>
How To Invest In Bitcoin: A Step-by-step Guide | Money
Bitcoin has captured Americas imagination. Whether or not the cryptocurrency will ultimately turn out to be a good investment or just a passing fad remains to be seen. Indeed, in the past several months Bitcoin prices have enjoyed a run-up that makes the 1999 tech bubble look staid by comparison. That excitement the promise of sudden riches or sudden ruin has a lot of people wondering how a bitcoin investment actually works. If thats you, heres a step-by-step guide on how to trade bitcoin. But first Like any speculative investment, buying bitcoin at sky-high valuations is risky business. If youre asking, Is it smart to invest in bitcoin? you might do well to heed this advice from billionaire investor Mark Cuban, who told MONEY , Its still very much a gamble. You need to know that your bitcoin investment might lose money. If youre not prepared to face that prospect, bitcoin investment might not be for you. Youd be in good company in that case, anyway. Jack Bogles bitcoin investment advice is pretty simple, and blunt: You should avoid Bitcoin speculation like the plague. And this is coming from the guy who founded Vanguard, so he knows a thing or two about investments. The other risk to keep in mind if you plan to invest in bitcoin, aside from the overall volatility of the cryptocurrency, is of a cyber attack. Hackers descended on digital currency exchange Bitfinex on Tuesday, less than a week after cybercrooks made off with $70 million in a separate heist. If youre aware of the risks and still willing to take the plunge, this is what you need to know about investing in bitcoin: Cryptocurrencies exist in an unregulated, decentralized digital sphere without involvement by (or protection via) a central bank. This is part of bitcoins appeal. People or entities can buy and s Continue reading >>
What Is Bitcoin? A Guide For The Confused.
What to know about the crypto-craze before it implodes. Maybe it was those stories you heard Lamborghinis and second mortgages, fortunes made and lost off of something you didnt even really know existed until six months ago. Maybe its those eye-popping charts you keep seeing, the ones that go $5,800 per unit to $19,000 per unit in just one month and the other ones that go in the opposite direction in just one week. Maybe all of your friends are constantly watching their phones, tracking their own investments, celebrating their newfound riches, freaking out about their sudden, sharp losses, and you just hate feeling left out. However you heard about it, it is now clear that this is at least something you should know about whether to invest, or just to inform your Schadenfreude. The problem is, well, what is a bitcoin, exactly? Secretly, you know you dont understand the thing, even though you may pretend to. Isnt it mostly for buying drugs? Where would I even buy one? Why would I want to? And isnt it already too late to be asking these questions, let alone actually investing in it? All right. Seriously. Remind me what a bitcoin is? A bitcoin is one unit of an anonymous digital currency called, yes, bitcoin. Hang on: anonymous digital currency? Thats what it was built to be, at least a theoretically untraceable and unhackable version of PayPal, more or less. But so many people got so excited about buying into the system that a market developed around buying and selling it with bitcoin becoming less important as a currency than as a commodity, like gold. You can still buy things in bitcoin (like you can with gold, sort of), but many more people are now using it as an investment vehicle. So bitcoin is a currency and a commodity? Something like that. Fundamentally, bitcoin i Continue reading >>
Should I Buy Bitcoin? Whether Or Not To Invest In Cryptocurrency Amid The Crash
Should I buy bitcoin? Whether or not to invest in cryptocurrency amid the crash Its value has plummeted, and investors have started panicking Bitcoin s price has tumbled, falling by more than 25per cent over the past seven days. At one point today, it was worth just half as much as it was a month ago . Thats an enormous decline, and investors are concerned that they may be about to lose money. Heres the latest on bitcoin and why its value has plummeted. Designed by Pierpaolo Lazzarini from Italian company Jet Capsule. The I.F.O. is fuelled by eight electric engines, which is able to push the flying object to an estimated top speed of about 120mph. A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea The giant human-like robot bears a striking resemblance to the military robots starring in the movie 'Avatar' and is claimed as a world first by its creators from a South Korean robotic company Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi and Kaptain Rock playing one string light saber guitar perform jam session A test lin Continue reading >>
Commentary: Wait For A Better Bitcoin Before Investing | Fortune
As an avid cryptocurrency nerd and someone who is fascinated by the huge appreciation and volatility we are seeing in this massive new market, I am constantly being asked, Is Bitcoin going to $100,000 per coin? I make no attempts at predicting short-term pricing (under 10 years). It would be akin to answering the question, When will the stock market crash again? That said, I do have some predictions on the development cycles of cryptocurrencies that could prove useful when considering a potential investment strategy. As the CEO of a tech company, and as someone who has rebuilt, from the ground up, the technology on which my company is based four times, I do not envy the founders of blockchain startups. When you build new technology, it is nearly impossible to get things right on the first go. You make the button too big or too blue. You forget about some super-important factor. Or you realize, with time, that no one cares about your main productit is that little side project that is selling like crazy. As a traditional tech company, you have the luxury of being able to pivot. We can build a product and continuously iterate until we get close-ish to being mostly right. This lets us allocate resources in a flexible way. We can build a minimal new feature and only develop it further if theres a proven demand. This helps us stay ahead of the competition and build a great product that improves over time. When you launch a cryptocurrency, your main problem is that its incredibly hard to iterate. Blockchain tech is built on decentralization and democracy, both of which happen to be diametrically opposed to fast iteration. Heres how the process for improving many cryptocurrencies works. First off, anyone can do it. Because the protocols are open source, you can sit down, look Continue reading >>
Read This Before You Buy Bitcoin
The real value is the blockchain technology. Consider diversifying across the top five or six coins. Last week, Bitcoin soared to just over $11,000. Then tanked 20% in a matter of hours. Heres the chart from Bloomberg showing the price action Heres a chart from Google Finance showing its run since December 2016 As you can see, Bitcoin has gone vertical. From about a $1,000 to over $16,000 in less than a year. What goes up, must come down. Buyer beware. Look, the bottom line is that the real innovation here is the blockchain. Not Bitcoin itself. The Federal Reserve Bank of Boston published a paper about Bitcoin in 2014. The authors wrote: Bitcoins lasting legacy will be the innovations it has spurred to payment technology, although the payment system will remain dominated by large processors because of economies of scale The revolution in payments technology pioneered by Bitcoin helps to accelerate the development of better technologies for making payments and transfers cheaper, faster, and more secure. The technology could revolutionize trade and commerce around the world. Even something like buying a home. Or anything that involves contracts for that matter. Theres even potential it could make our personal information more secure. Bitcoins price and value is another story. Its not a business. You cant analyze the products and services it sells. The management. The assets. Or the debt. You could say its a form of money. Some say it isnt an investment and has no yield. (Some gold critics would say that about gold too. But gold has been around as a store of wealth for thousands of years.) You could say its a chaos or inflation hedge. There was a study done by Briere, Oosterlinck, and Szafarz that found Bitcoin returns had a weak but significant correlation with gold and Continue reading >>
Should I Buy Bitcoin? Two Opposite Views From Professional Investors
Should I buy Bitcoin? Two opposite views from professional investors The price of Bitcoin was $0.06 when it launched in 2009Credit:Sean Gallup/Getty During a year in which stock markets boomed and Bank Rate took its first upward step in a more than a decade, only one financial story has truly captured the public imagination: the rise (and rise, and rise again) of Bitcoin. A year ago many if not most had probably never heard of it. Those who had, probablydismissed it asmysterious digital currency used primarily by criminals but with which, if you really wanted to,you could purchase hamburgers or t-shirts in a few hipster outlets. Today, though, it is something quite different. Its rocketing price has created billionaires and reportedly enabled ordinary people everywhere to realise their dreams of buying homes, quitting jobs and retiring... Start a 30-day free trial for unlimited access to Premium articles Continue reading >>
Too Late To Buy Bitcoin? How Economics Says No.
Too Late to Buy Bitcoin? How Economics Says No. With the price of Bitcoin up over $15,000, is it too late to invest? Major investors, like JPMorgan CEO James Dimon or the Wolf of Wall Street, Jordan Belfort , have come out and called Bitcoin a "fraud." Others, like Ray Dalio ,call it a "bubble." Along with these claims comes the advice that you should not invest in , nor own any, Bitcoin. From the world of economics, we can identify three reasons why these bold claims by investment gurus should be taken with a grain of salt and their investment advice ignored even with the price over $17,000. 1) We don't know the future, and neither do they. The price of a stock or an asset reflects the belief about the current and future value of the asset. At over $15,000, one Bitcoin is quite expensive, but that doesn't mean we've hit its ultimate peak remember we felt that way when it hit $1,000, and now it is up to more than$15,000. Bitcoin could still continue to go up in value. X Even if the market is not perfectly efficient, history shows us that even experts are not capable of knowing the future of particular stocks or specific investments beyond the current price. Experts can guess, and they can even give convincing explanations, but the price of the investment already reflects their rationales. When it comes to Bitcoin, it might be likely to be a failure, but the price already reflects that possibility. The price of $15,000 is probably about right, given the risk of failure and the potential reward from success. Why are hedge fund managers and tech investors getting in on Bitcoin, but the average investor is still asking questions while the price has been skyrocketing? Risk and fear can help us explain why. Everyone knows that stocks have higher returns than government bonds Continue reading >>
So You're Thinking About Investing In Bitcoin? Don't
So you're thinking about investing in bitcoin? Don't So you're thinking about investing in bitcoin? Don't A collective insanity has sprouted around the new field of cryptocurrencies, causing an irrational gold rush. I know youre tempted, but dont be a fool Mr Money Mustache is a financial blogger. He retired at 30 by living frugally and consistently investing his paycheck Last modified on Mon 15 Jan 2018 13.57EST An investment is something that has intrinsic value, not speculative value.Photograph: Anadolu Agency/Getty Images Ive been watching this bitcoin situation for a few years, assuming it would just blow over. But a collective insanity has sprouted around the new field of cryptocurrencies, causing an irrational gold rush worldwide. It has gotten to the point where a large number of financial stories and questions in my inbox ask whether or not to invest in BitCoin. Lets start with the answer: no. You should not invest in Bitcoin. The reason why is that its not an investment; just as gold, tulip bulbs, Beanie Babies, and rare baseball cards are also not investments. These are all things that people have bought in the past, driving them to absurd prices, not because they did anything useful or produced money or had social value, but solely because people thought they could sell them on to someone else for more money in the future. When you make this kind of purchase which you should never do you are speculating. This is not a useful activity. Youre playing a psychological, win-lose battle against other humans with money as the sole objective. Even if you win money through dumb luck, you have lost time and energy, which means you have lost. Bitcoin and cryptocurrencies 'will come to bad end', says Warren Buffett Investing means buying an asset that actually creates Continue reading >>
Should You Buy Bitcoin? Or Ethereum? Or Dash? Or Just ... Boring Old Stocks?
Should you buy bitcoin? Or Ethereum? Or Dash? Or just ... boring old stocks? A visual representation of the digital cryptocurrency, bitcoin alongside U.S. dollars on Dec. 07, 2017 in London, England.-Dan Kitwood/Getty Images So many cryptocurrencies. So much money to be made or lost. Youre a would-be investor, deciding whether to put your money in bitcoin . Or Dash .(It's digital cash. See what they did there?) Or Ripple .(Though I have a personal rule about never investing in a currency that could be mistaken for an ice cream.) Where do you put your money? Well, besides scanning Reddit threads, starting Wednesday, there will be official financial ratings in the mix. Weiss Ratings is going to assign letter grades think A through Fto cryptocurrencies. Interested parties can subscribe to the ratings for $39 a month to find out the grades. Though, because of the volatile nature of cryptocurrencies, those grades could change daily. Marketplace Tech host Molly Wood spoke with Martin Weiss, whos behind the ratings. Molly Wood: Youre creating a rating for cryptocurrencies. Why? Martin Weiss: As you've seen in the news, the market for cryptocurrencies is wild. It's one of the few places we've seen so much fear, greed and panic. So we felt that this is exactly when individual investors and consumers need some rational guidance that's based on fact and not fiction. Wood: Given the newness and complexity, and the wildness overall, how on earth could you possibly come up with what you think is a reliable rating? Weiss: Well, reliable ratings are based on four things in our model. The first is what we call the risk index, to give you a sense of how much price risk there is in each cryptocurrency, and there's a lot of variability there. Some are not as volatile as others. The second Continue reading >>
Bitcoin Or Stocks? Heres The One To Buy In 2018
Bitcoin or Stocks? Heres the One to Buy in 2018 January 01, 2018, 09:30:01 AM EDT By DividendChannel.com, BNK Invest Worried that a bursting bitcoin bubble will sideswipe stocks in 2018? Don't be. Because as I'll explain in a moment, the hysteria over the so-called "cryptocurrency" is actually good for stocks this year, no matter if bitcoin explodes for a 10,000% gain ... or flames out and crashes back to earth. I'll also show you the one surprising group of stocks poised to benefit from bitcoin in 2018, no matter what happens. First, if you're like most people and find bitcoin a complete mystery, stick with me for a minute and I'll show you how it works--and what's pumping up the bulging bitcoin bubble. I first heard about bitcoin in 2013. At the time, I thought it was interesting technology--but not an investment. Bitcoin simply decentralizes a ledger. Instead of having a central authority, such as the accounting office at a bank, settle all accounts and make sure money goes to the people it's supposed to, that's all done on a decentralized ledger that's distributed among every bitcoin in existence. That's where the term "blockchain" comes from: each transaction is a "block" that is "chained" together on that massive, decentralized leger. The biggest benefit? Bitcoin provides an anonymous transfer of money. Theoretically, the ID of every bitcoin is not tied to a particular person, which makes it the perfect currency for transmitting money privately. The truth is, bitcoin is actually the least private currency in existence! That's because you can look up every transaction on that very public ledger. And since all the major cryptocurrency exchanges must get proof of identification from people before they buy a bitcoin, the currency's anonymity is now a mirage. Oh, and Continue reading >>