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 You Invest In Bitcoins For Retirement? Only If You Think Riding A Roller Coaster Without A Safety Harness Is A Good Idea.
Perspective Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events Should you invest in bitcoins for retirement? Only if you think riding a roller coaster without a safety harness is a good idea. By Michelle Singletary By Michelle Singletary December 11 Follow @SingletaryM Even in the currently roaring stock market, people are looking for higher returns. And an investment that has jumped more than 40 percent in one week can seem like just the way to make a lot of money. What do you think of bitcoins, a number or people have asked me. Bitcoin is an electronic currency that exists only on the Internet. There are not any actual coins. Its not backed by anything except the hope by investors that that other folks will continue to want to buy it. Yet, it has become one of the most talked about investments of late. Why? Supply and demand. People are buying up bitcoin, driving up the price of the 16.7 million coins in circulation, reported The Washington Posts Thomas Heath. In January, the cryptocurrency was trading at just under $1,000 per coin. Last week, it reached a high of $17,000 on one exchange and just over $19,000 on another. By Friday it was sliding down. Carl Quintanilla (@carlquintanilla) December 7, 2017 It dropped to as low as $14,566.81 Friday just after 1:30 p.m., reported CNBs Everett Rosenfeld. Bitcoin plummeted just hours after setting yet another record CNN tech writer Seth Fiegerman wrote about buying $250 worth of bitcoin. In writing about the volatility of the currency Fiegerman said, a key reason the price of bitcoin keeps going up is, well, because it keeps going up. Small investors like yours truly have a fear of missing out on a chance to get rich quick. And when the value of Continue reading >>
How Can I Buy Bitcoins? - Coindesk
OK, so you've learned the basics about bitcoin, the next step is to get some bitcoins. But how? This guide will tell you what you need to know. You can buy bitcoins from either exchanges, or directly from other people via marketplaces. You can pay for them in a variety of ways, ranging from hard cashtocredit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live. Surprisingly, it's still not easyto buy bitcoins with your credit card or PayPal, depending on your jurisdiction. This is because such transactions can easily be reversed with a phone call to the card company (ie 'chargebacks'). Since it's hard to prove any goods changed hands in a transfer of bitcoins, exchanges avoid this payment method and so do most private sellers. However, the options have recently grown for consumers in some countries. In the US, Coinbase , and Circle offer purchases with credit cards. Bittylicious , CoinCorner and Coinbase offer this service in the UK, accepting 3D Secure-enabled credit and debit cards on the Visa and MasterCard networks. Underbanked consumers in the US can turn to expresscoin , which recently launched to serve this market, acceptingmoney orders, personal checks and wire transfers. Next, you will need aplaceto store your new bitcoins. In the bitcoin world, they're called a 'wallet' but it might be best to think of them as a kind of bank account. Depending on the security levels you want, different wallets will provide different levels of security. Some act like everyday spending accounts and are comparable to a traditional leather wallet, while others tout military-grade protections. The main options are: (1) a software wallet stored on the hard drive of your computer ,(2) an online, web-base 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 >>
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 >>
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 You Buy Bitcoin? Cryptocurrency Price Rebounds But Dangers Could Lie Ahead In 2018
Should You Buy Bitcoin? Cryptocurrency Price Rebounds but Dangers Could Lie Ahead in 2018 Investors checking their phones for the latest bitcoin update may have done a double take Tuesday as the cryptocurrency rose 10 percent after having one of its worst weeks, but the token's highs and lows have some wondering whether it's time to jump back into to the bitcoin bubble. The cryptocurrency hit $15,116.50 on Tuesday after the tokens fell Friday, losing a third of their value in 24 hours at $11,000. Investors have seen the price of the token increase in 2017, from $1,000 earlier in the year before skyrocketing to $19,666 in December. But experts are still unsure about future predictions for the tokens. In Pictures: The 50 Most Powerful Military Forces in the World "I think we're going to see bitcoin hitting the $60,000 dollar mark, but I also think we're going to see bitcoin hitting the $5,000 dollar mark," Julian Hosp, a cryptocurrency entrepreneur, told CNBC . The question is, though, Which one is it going to hit first? The dip in the currencylast week had some wondering whether to jump on the bitcoin bandwagon while its prices were down, but experts have warned against buying into a currency with such volatility. Keep up with this story and more by subscribing now JPMorgan Chase CEO Jamie Dimon has called the currency a fraud, and billionaire Warren Buffett said it was a mirage, while officials overseas in China and Singapore are working to regulate the tokens. Singapore officials warned last week against the cryptocurrency, saying the increases were brought on by speculation and that the bubble could burst. Shmuel Hauser, the chairman of the Israel Securities Authority, said Monday that he would look into banning companies supported by cryptocurrencies from the Tel Av Continue reading >>
Ask A Fool: Are Any Bitcoin Stocks Worth Buying?
Ask a Fool: Are any bitcoin stocks worth buying? Some bitcoin-related stocks are worthy investments, but be careful. Ask a Fool: Are any bitcoin stocks worth buying? Some bitcoin-related stocks are worthy investments, but be careful. Check out this story on USATODAY.com: A link has been sent to your friend's email address. A link has been posted to your Facebook feed. To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Ask a Fool: Are any bitcoin stocks worth buying? Matthew Frankel, The Motley Fool Published 1:00 p.m. ET Dec. 27, 2017 Bitcoin has been volatile lately, but has soared past $16,000 (again). Buzz60 Some bitcoin-related stocks are worthy investments, but be careful. Bitcoin symbol superimposed on a candlestick chart in blue with yellow and red lights. CONNECT TWEET LINKEDIN 1 COMMENTEMAILMORE Q: Is it safer to buy stocks that could profit from bitcoin rather than buying bitcoin itself? I consider bitcoin and other digital currencies to be highly speculative investments, and people shouldn't buy them with any money they can't afford to lose. Stocks of companies that could profit by the surge in digital currencies can be a smart idea, but there are two categories of these "bitcoin stocks" that you need to be aware of. First, there are companies who could use bitcoin to add to an existing, successful business model. Square(NYSE: SQ) is an excellent example. The company is building a small-business financial ecosystem, and its personal finance solutions, like its Square Cash app, are rapidly gaining popularity. Recently, the company announced that it planned to test out bitcoin buying and selling through the app. In other words, bitcoin adoption could certainly add to the company, but it isn't close to being Square's onl Continue reading >>
Should I Buy Bitcoin? | Bankrate.com
Jonathan Mohan has a well-rehearsed response for people who ask him if its time to invest in bitcoin : hes neither for nor against buying, but asks everyone to keep in mind that the cryptocurrency is at all-time highs. The funny thing is that it keeps outperforming, says Mohan, who works as a consultant in the burgeoning industry and has followed bitcoin since 2011. I repeated my warning when it was at $1,200, $2,000, and $3,000. Bitcoin is now priced at more than $16,000, according to Coindesk, a news site dedicated to cryptocurrencies , but the price can fluctuate wildly. It is perhaps not quite fair to call the digital currency mainstream, but it has certainly evolved away from being thought of mostly as a way to buy drugs and other illicit items on the dark web. Cryptocurrencies like bitcoin, ether, litecoin and XRP are becoming a coveted asset class for many investors to include in their portfolios. The stalwarts of banking and finance are more cautious. Jamie Dimon, CEO of JPMorgan Chase, has suggested that those who buy it are stupid. Goldman Sachs CEO Lloyd Blankfein has said his company is open to bitcoin, but cautioned it was too volatile for the firm to have a strategy just yet. But many other investment firms are responding to growing customer interest. Earlier this year, Fidelity launched a partnership with Coinbase, the largest digital currency exchange and wallet provider, to allow its users to check their balances alongside the rest of their investments with the firm. Like most investing decisions, purchasing bitcoin or other digital currencies starts with assessing your risk tolerance. This step is a must for all non-bank investments, but it is a particularly important point with cryptocurrencies given their volatility. Ether, the cryptocurrency that i Continue reading >>
What You Should Do About Stock Market Volatility And Why Millennials Invest In Bitcoin
What you should do about stock market volatility and why millennials invest in bitcoin Happy Tuesday, MarketWatchers! It was a wild day in the markets. Here are your top stories in personal finance. How his babys health scare taught a money manager what investors really need A hospital encounter helps a financial adviser focus on being a calm and trusted resource for clients. Will the recent stock market volatility affect house prices? The stock markets behavior could influence home-buying activity . This guy just lost $10,000 trying to time the market using his credit card Day trading is treacherous in a volatile market and the competition is fierce. Financial advisers say most baby boomers can breathe easy, despite market volatility At what age should you be most worried about a stock market downturn? How the new tax law affects homeowners it could be more than you think Homeowners with larger mortgages and home equity loans should pay special attention to the new tax code. Dont freak out about the market or your 401(k) do these 5 things instead Many consumers could benefit from some simple changes in their behavior and finances. E-cigarette commercials may encourage smokers to quit If e-cigarette ads were banned on TV, the number of smoking adults who quit would drop 3% . Millennials are afraid stocks are too risky, so theyre investing in bitcoin People under the age of 30 are more likely to spend money on cryptocurrencies than older generations . New developments that could affect your student loans Recent policy changes and other factors could affect you , and alter the repayment plan thats best for you. Heres exactly how much credit-card and student debt makes you undateable There appears to be a tipping point where debt and singledom go hand-in-hand . Hannity pi Continue reading >>
5 Things To Know Before Investing In Bitcoin 2017/2018
This post will outline some things you NEED to know before you buy. How to buy bitcoins (with credit card or bank account ) How to protect and properly secure your bitcoins if you do decide to invest Note: If you dont need the details and just want to buy, Coinbase is the easiest way to buy in the USA, Canada, and Europe. The world is becoming ever more reliant on the internet. It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class. Investing in bitcoin may seem scary, but know that it takes time and effort to understand how Bitcoin works. Note: Bitcoin with a capital B references Bitcoin the network or Bitcoin the payment system; bitcoin with a lowercase b references bitcoin as a currency or bitcoin the currency unit. It seems silly to some people that one bitcoin can be worth hundreds of dollars. Lets look to gold as an example currency. There is a limited amount of gold on earth. As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine. There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine. Take a look at Bitcoins inflation rate and supply rate: In addition to being scarce, bitcoins are useful. Bitcoin provides sound and predictable monetary policy that can be verified by anyone. Bitcoins sound monetary policy is one of its most important features. Its possible to see when new bitcoins are created or how many bitcoins are in circulation. Bitcoins can be sent from anywhere in the world to anywhere else in the world. No bank can block payments or close your account. Bitcoin is censorship resistant money. Bit 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 >>
Should You Buy Bitcoin? Ask A Different Question First
Your Money |Should You Buy Bitcoin? Ask a Different Question First I received these two messages within three minutes of each other recently: Several years back I used to mine Bitcoin, and then I sold most of them off for a down payment for our house. I had 400 BTC at one point, which would be worth $6.8 million today. Needless to say, I am really depressed now. I only kept one Bitcoin. I should have kept more. My husband has invested in Bitcoin, and my son has invested in Etherium! I am debating about switching my 401(k) to Bitcoin. Everyone, including my mother, is wondering if they should buy Bitcoin or some other cryptocurrency . And since everyone is asking, there are plenty of semi-informed people providing answers. But if you try to find a solid answer to this question, you will probably just end up more confused. Answering the question means guessing where the price of Bitcoin is headed, and nobody who is being honest actually knows. So may I humbly suggest that asking if we should all buy Bitcoin is the wrong question, and that we should ask a different one instead. The question we should be asking ourselves is this: Does buying Bitcoin fit into my investment plan? In order to answer the investing plan question, it might help to clarify a few things. Investing is different from speculating or gambling. Investing is a means to an end, and that end is our collective financial goals. Beating the stock market, buying whats hot, outperforming a brother-in-law those are not financial goals. Financial goals are things like having money to send kids to college, buying a house, taking a trip or retiring someday. This is why we invest. If we start by declaring that certain important goals are the reasons we are investing, then we can move on to figuring out the investme 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 >>
Top 12 Stocks To Own Should Bitcoin Price Rally Continue
Top 12 Stocks to Own Should Bitcoin Price Rally Continue Fundstrat says investors need to have some exposure to bitcoin and its blockchain technology as a handy tool for diversification. These are the dozen equities that could propel your portfolio as bitcoin continues its gains. Bitcoin is on fire, but are you cashing in? You should be, according to Fundstrat analysts in a Friday. Dec. 8, note. Led by managing partner Thomas Lee, the analysts suggest 12 stocks to own to best capitalize on the bitcoin boom. "We believe investors should have exposure to blockchain, particularly given bitcoin has essentially zero correlation to equities, bonds and commodities - hence, as a portfolio strategy, bitcoin is a good diversification tool," Fundstrat wrote. But equities managers might struggle to leverage bitcoin-related names given their mandates or practical issues. That's why Fundstrat offered a group of 12 stocks that best leverage bitcoin and blockchain, either tethered to the price gains of bitcoin and tokens, the transaction activity of either wallets or exchanges, and the mining of digital currency based on proof of work or proof of stake. An equal weighted basket of the following stocks is up 136% year-to-date, Fundstrat said. While it trails bitcoin's otherworldly price appreciation, it tops the S&P 500 Index's 2017 gains, which are about 17%. "What could go wrong," Fundstrat wrote. "Bitcoin and tokens are better ways to leverage blockchain. But these equity plays allow equity portfolios to have exposure." Bitcoin Investment Trust ( GBTC ) , MGT Capital Investments Inc. ( MGTI ) , HIVE Blockchain Tehcnologies Ltd. ( PRELF ) , U.S. Global Investors Inc. ( GROW ) and DigitalX Ltd. ( DGGXF ) "Many investors know the ETN GBTC which is issued by Grayscale Investments and is Continue reading >>