The Real Value Of Bitcoin: Blockchain
The video above explains the true value behind Bitcoin and other cryptocurrencies Blockchain. Get our PDF study on REITs and our other investor studies! Save it to your desktop, read it on your tablet, or email to your colleagues. The type of mania were seeing in Bitcoin is reminiscent of the 99 tech bubble. Theyre similar in that we have a majority of investors that have no clue about what theyre really investing in. The strategy in 99 was to throw your money into anything .com related. Nowadays its throw your money in anything crypto related. Talk to anyone about Bitcoin and theyll tell you its the future. But do they know why? Nope! In reality Bitcoin doesnt matter. Nor does Ripple, Bitcoin Cash, Litecoin, etc. They are all replaceable. We have no idea which cryptocurrency will survive if any. But what will survive is Blockchain the tech that powers them all. If youre a trader, the cryptocurrency markets are fantastic. The volatility and pure mania is perfect to take advantage off. And because its a new market, simple technical patterns work pretty well. (Most investors in this market are not even familiar with those techniques. They only know how to HODL.) But trading is short-term. If youre looking to invest for the long-term, then you need to invest in companies working with Blockchain technology. Why the specific cryptocurrency doesnt matter while Blockchain does How Blockchain provides a new level of security to the market Make sure to watch this video to learn about all about Blockchain and why its so valuable. And if you like this video, be sure to subscribe to Fallible for more. Like the video and share it with your friends too. And if youre on Facebook, you can find our page here . Continue reading >>
What's The Value Of Bitcoin? Who Knows
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Unlike tangible gold and silver, digital currencies haven't had hundreds of years to prove their durability. OK, bitcoinsure looks like it's a bubble. For one thing, there's that chart: For another, if you follow the Investopedia definition that a bubble "is created by a surge in asset prices unwarranted by the fundamentals of the asset," there's the unsettling reality that this particular asset has no fundamentals. That is, there's no stream of income orcollection ofassetsattached to ownership of a bitcoin.Bitcoins haveno intrinsic value. This last statement, which I have made before , tends to irritate some bitcoin partisans. It shouldn't! The U.S. dollar hashad no intrinsic value either since President Richard Nixon unlinked it from gold in 1971. Yet dollars remain useful as a means of exchange, and people are willing to accept them as payment for more tangible things. Come to think of it, gold doesn't have much intrinsic value either.Sure, you can make nice jewelry out of it and it has some industrial applications, but that's not why it sells for $1,248 an ounce. It sells for that much because people have over the millennia come to accept it as a durable store of value. During an earlier bitcoin bull market in 2013, Bank of America Merrill Lynch currency strat Continue reading >>
Morgan Stanley On Bitcoin: 'the Value Would Be 0' - Business Insider
A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our The price of bitcoin as of 8.20 a.m. on December 24, after a very volatile week. Even after a rough week, bitcoin is trading at around $14,400. A recent research note from Morgan Stanley points out how hard it is to justify that valuation. The scarcity of people willing to accept it as a means of payment indicates that its actual value might be nothing. Morgan Stanley analyst James Faucette and his team sent a research note to clients a few days ago suggesting that the real value of bitcoin might be ... $0. That's zero dollars. (Bitcoin stood at around $14,400 at the time of writing.) The paper (titled "Bitcoin decrypted") did not give a price target for bitcoin. But in a section titled "Attempts to Value Bitcoin," Faucette described why it is so hard to ascribe value to the cryptocurrency. It's not like a currency, it's not like gold, and it has had difficulty scaling. He concluded: Very difficult question to answer, but some points to consider Can Bitcoin be valued like a currency? No. There is no interest rate associated with Bitcoin. Like digital gold? Maybe. Does not have any intrinsic use like gold has in electronics or jewelry. But investors appear to be ascribing some value to it. Is it a payment network? Yes but it is tough to scale and does not charge a transaction fee.* Bitcoin average daily trading volume of $3bn (last 30 days) vs $5.4 trillion in the FX market. Est. <$300mn in daily purchase volume vs. $17bn for Visa. Faucette backed his argument with this chart of online retailers who accept bitcoin, titled "Virtually no acceptance, and shrinking": This is possibly the sadde Continue reading >>
The Real Value Of Bitcoin Might Be $0, Morgan Stanley Says
Bitcoin has had a roller-coaster month thats seen prices spike from $7,000 up to $20,000 , and most of the way back down again . Depending on who you listen to, Bitcoin is either the greatest investment opportunity since Apple, or the biggest bubble since someone thought that tulips looked pretty. Professional analysts are having to change their perspective on Bitcoin as the amount of money involved shoots up, and right now, the biggest question about the coin is what it actuallyis. Don't Miss: Todays best deals: Surround sound system, truly wireless earbuds, LEDs that flash to music, more The easiest conclusion, of course, is that Bitcoin is a currency after all, thats how it was designed. But economists point out that it fails most of the tests of usefulness for a currency: the value fluctuates dramatically, it isnt universally accepted, and people just straight-up arent really using it to buy things. So perhaps its an investment after all, some people are seeing returns of 25,000%. But unlike most investments, it doesnt have any intrinsic value, guaranteed payout, or usefulness. All of this has led Morgan Stanley analystJames Faucette to conclude that Bitcoin might be not all its cracked up to be. In a research note seen byBusiness Insider, Faucette addresses the very difficult question of what Bitcoin actually is, suggesting what will happen to the platform, depending on what it turns out to be. If nobody accepts the technology for payment then the value would be 0, Faucette writes, although hes not specifically saying that Bitcoinisworth zero. Hes just saying that Bitcoins value is intrinsically reliant on the network effect, and if nobody wants to buy it , it becomes worthless. This isnt a stinging indictment of Bitcoin, per se; it sounds more like Faucette is re Continue reading >>
Bitcoin Price Index - Real-time Bitcoin Price Charts
The vice president of the European Central Bank saidyesterday that investors are taking a risk buying bitcoin at current high prices. Do you believe celebrity endorsements help the blockchain industry? Yes big names add credibility and visibility No they back scam projects or distract from innovation Indifferent this neither helps nor hurts the space I would like to receive the following emails: CoinDesk Weekly - Insights for the week ahead CoinDesk Daily - Our snapshot of the day's news Subscribe to our free newsletter and follow us Continue reading >>
What Is The Real Value Of Bitcoin?
The hype surrounding cryptocurrencies reached a fever pitch in mid-December when Bitcoin prices flew to nearly $20,000. Prices were up over 1,900% in 12 months. December 2017 also saw a record in both the number of initial coin offerings (ICOs) and the amount of money raised by new ICOs. There were a total of 74 new ICOs in December, which raised over $1.6 billion in funds. The number of new ICOs dropped in January and continues to fall as we get deeper into February. The crypto market is already overcrowded. Along with Bitcoin, there are now over 1,500 cryptocurrencies on the market. There are currently more cryptocurrencies than the total number of issuers listed on Canada's Toronto Stock Exchange . The record-breaking month for ICOs and Bitcoin's record price also coincided with a new trend in investor-bait for public companies: include cryptocurrency or blockchain in your business model however possible. The most notable of the initial campaigns was the Long Island Iced Tea Corp. In late December, the iced tea maker suddenly announced the company would entirely shift its focus toward Bitcoin and blockchain technology and even change the company's name to Long Blockchain Corp. (NASDAQ: LBCC). The announcement caused share prices of the tiny beverage company to skyrocket over 250% in a single day. With Bitcoin and cryptocurrency prices flying, there was almost no limit to the optimism among social media posters. Some believed the price of Bitcoin was going to a million. Others believed it was going to infinity. December 2017 was no doubt the peak of crypto-mania. Since then, Bitcoin prices have fallen as much as 70%, dipping below $6,000 earlier this week. Prices have since recovered a bit. At last look, BTC was trading just over $8,000. But with Bitcoin prices in sh Continue reading >>
Bitcoin's Value Could Be Zero, Says Morgan Stanley Analyst | Fortune
As the price of Bitcoin and Bitcoin futures have risen in 2017, one Morgan Stanley analyst has a radically different take on the digital currency. In a markedly different take Todays Bitcoin price is around $16,000 , but analyst James Faucette said in a research note last week, that the value of Bitcoin could actually be zero. In a research note titled Bitcoin Decrypted, the Morgan Stanley analyst outlined several reasons for why Bitcoin may have no real-world value, Business Insider first reported. One reason is that its not a real currency, Faucette said, since Bitcoin has no interest rate attached to it. Another is that since its not a physical object like gold (which can be used as a precious metal), it lacks an intrinsic value. However, Faucette concedes that Bitcoin has value as a payment network, but therein lies the rub. The analyst claimed Bitcoin has virtually no acceptance, and shrinking, adding if nobody accepts the technology for payment then the value would be 0. Bitcoin following classic bubble pattern. pic.twitter.com/fhEedS4bjq Continue reading >>
How Much Is Bitcoin Really Worth?
I write about building wealth and achieving financial freedom. Opinions expressed by Forbes Contributors are their own. I'm sitting at my kitchen table at 6:31 p.m. ET on Friday, December 1, 2017. The price of Bitcoin is $10,790.58. PARIS, FRANCE - DECEMBER 05: In this photo illustration a man holds a visual representation of the digital Cryptocurrency Bitcoin. (Photo by Chesnot/Getty Images) It's here that I'm reminded of something Warren Buffett's often said. Price is what you pay, value is what you get. So what value does a Bitcoin buyer get in exchange for $10,790.58 ofhis or herhard earned U.S. dollars? That's what I'm going to attempt to answer in this article. Before we can attempt to value Bitcoin, we first must agree on what it is. That turns out not to be so easy. Describing Bitcoin as a currency seems like a natural place to begin. After all, I'm told some retailers accept Bitcoin as a method of payment. On closer inspection, however, comparing Bitcoin to a currency is like comparing lightening to a lightening bug (apologies to Mr. Clemens). As the WSJ has noted , Bitcoin is the hottest currency that nobody is using. As Jeffrey Dorfman here at Forbes pointed out, there are two problems with Bitcoin as a currency. First, it's too unstable. Who wants to accept something for payment that could drop in value by 25% before you have time to pour a cup of coffee? Put another way, would you accept Bitcoin as payment for a car you were selling if you had to wait 60 days to convert it to dollars? I doubt it. Continue reading >>
Why Bitcoin's Value Could Eventually Approach Zero
Why Bitcoin's Value Could Eventually Approach Zero Unless energy efficiency improves dramatically, demand for cryptocurrencies will eventually be self-limiting. According to most observers, the speculative bubble-of-the-year award for 2017had there been onewould have gone to Bitcoin , the value of which soared from under $800 in January of last year to almost $20,000 by mid-December. In fact, though, Ripple (a lesser-known cryptocurrency) racked up an even more astounding achievement, with a 35,000 percent value increase for 2017. Clearly, investors who passed up cryptocurrencies last year missed the boat of all boats. Still, not everyone is a Bitcoin booster these days. Researchers at Digiconomist and elsewhere have recently attempted to curb our collective crypto-enthusiasm by calculating Bitcoin's energy footprint, showing that the Bitcoin system currently uses more electricity than the nation of Denmark. The current algorithm for creating, or "mining," a Bitcoin is based on computing a supermassive number of hash functions. That undoubtedly takes a lot of energyyet, owing to the secrecy of the process, no one knows exactly how much. Bitcoin trades, which employ blockchain technology (more about that below), also use a lot of energy: Trading a Bitcoin uses at least 77 kilowatt hours (kWh), according to one estimateenough to power a large American house for a week . At that rate, if all Visa transactions were denominated in Bitcoin, they would use as much electricity as the entire world currently does for all purposes. (Digiconomist estimates that the transaction energy cost is over three times higher, at 250 kWh/transaction.) Total energy usage for the Bitcoin system (mining plus transactions) is also a slippery figure. Digiconomist estimates 24 terawatt hours (TWh) Continue reading >>
Dont Fall For The Hypewhy Bitcoins $10,000 Price Doesnt Reflect Its Truevalue.
Co-founder at Satoshi Citadel Industries (www.sci.ph). Building the Blockchain Ecosystem in the Philippines since 2014. Views and opinions are my own. Dont fall for the hype Why Bitcoins $10,000 Price Doesnt Reflect Its TrueValue. Here are some examples of financial news headlines from the last few days: BITCOIN SOARS ABOVE $11,000! The Guardian, Nov. 29th, 2017 News outlets havent even had 24 hours to let the 10K news simmer and it already climbed to $11,500. By the time they published the 11K piece, it already dropped back to $9,000. Then, as soon as they entered the last word on their Bitcoin is crashing! article, its back at $11,000 per BTC. Weve seen this before, back in 2013, a media frenzy when Bitcoin was approaching $1,000 that fueled that years bubble. In January of that year, one bitcoin was trading at around $15.00, rocketed to $266 by April, and then crashed back to $50 really quick. By November, it had already broken $1,000, peaking at $1,242 on Mt.Gox. Thats an almost 100-fold increase in 11 months, an order of magnitude larger than this years (2017) 10-fold run up. Funny thing is, the charts then are almost identical to the ones today, and news articles look exactly the same . Just add one zero. The media gobbles this up because people are fascinated by this stuff. Stories of people finding 5000 BTC in an old hard drive that they bought for $25 in 2009, a man throwing away 7500 BTC by accident and scouring a landfill to try and find it, a man buying pizzas for 10,000 BTC Its the sizzle to the steak and it sells. People love it when things go up, but what goes up must come down, and Bitcoin is not immune to this. History shows three major Bitcoin Bubbles, and a LOT of volatility in between. Swings of 2030% in one day are not uncommon in the Bitcoin world Continue reading >>
The True Value Of Bitcoin And The Blockchain
The True Value of Bitcoin and The Blockchain 180 pounds of gold (displayed above) is worth an estimated $3,500,000 (USD) based on current rates of $1220/oz. Under 5 years ago, that same amount of gold was worth over $5,000,000 15 years ago, the same amount of gold was worth under $1,000,000 At one point in the history of the human race, a 180 pound gold nugget would have been worth $0 Starting from thousands of years ago, gold was used in high-end decorations and jewelry due to its beauty, rarity, and resilience. In smaller sizes, gold provided to be a useful medium of exchange and storage for society. The utility of gold is what was valuable to people thousands of years ago. However, it is important to understand that golds utility came as a result of technological advancements. As mentioned previously, a 180 pound gold nugget would have been worth $0 because at one point in history, humans would not have possessed the necessary technological skills to make use of it. It would not have been possible to make jewelry or ornaments from it, let alone easily move it. Only after discovery of methods allowing humans to take advantage of golds malleability, did gold begin to play a more significant role in human history. Now lets take a look at Bitcoin (BTC) which has been in existence for only 7 years (compared to 1000s of years of history for gold). When Bitcoin first came out it was useless just like the huge gold nugget. At one point, 10,000 BTC would only get you two pizzas . As time passed, more people took interest and contributed towards the technological development of Bitcoin. Now 1 Bitcoin is valued near $500. Developments such as the Thunder Network essentially gives us the ability to split the huge gold nugget into smaller coins. This results in increased utility Continue reading >>
Why Do Bitcoins Have Value?
Bitcoin was launched in 2009 as the world's first decentralized, private digital currency. Because it has no physical denominations , Bitcoin only exists inside of an interlinked computer network system. This is not entirely unique, as much of the U.S. dollar supply only exists in digital account balances instead of as actual green pieces of paper. Bitcoins are generated, or " mined ," through a sequence of complex mathematical formulas run through computers. The anonymous creator of Bitcoins set a cap on total Bitcoin volume. Once that number hits 21 million, no more Bitcoins can be generated. These digital coins can then be bought or sold with other currencies and used as an investment or money to buy goods from any sellers who accept them. Economics teaches society that values are subjective; items have economic value because people desire them for one reason or another. Currencies, or mediums of exchange, serve several different and crucial functions in an economy. For one, they make trade easier; money currencies trade for nearly any good or service. For example, suppose a person has 5 units of lumber and wishes to purchase a dog. Without currency, his only option is to find a lumber-wanting dog owner. With currency, like U.S. dollars, he can sell the lumber to anyone who wants it and then use the money to purchase a dog. Currency also provides a universal measurement for accounting purposes. For instance, without currency, it is difficult to compare companies that sell different goods. Currency is used as a store of value , which makes saving, investing and banking easier. Some currencies, like gold, have value because they are useful as a commodity. Government fiat currencies, like the U.S. dollar, have value because governments grant them legal tender status an Continue reading >>
What Is Bitcoin's True Value?
Technically, they are both worth the same. It costs 20 to get a 20 gift card in Topman and it can be used to buy the amount of clothes as the 20 note except it can only be used in Topman. Therefore, in reality the 20 note is worth more. This can be seen because there are actual websites where you can buy gift cards for below their cost. Clearly, the free market believes that the gift card is worth less because you can only spend them in a CERTAIN LOCATION. Currently, this is the same for Bitcoin try going to your local supermarket and paying with bitcoin and let me know their reaction! Only a select group of places currently accept BTC Weve already concluded that fiat currency is only worth its value because it is accepted at merchants. Therefore, if Bitcoin is not, it clearly doesnt have much value. Yet it has a crazy high price ($4,200 at the time of writing) so how can this be? Even though some people may have used Bitcoin to buy goods before, I bet 1000x more of you have used Paypal. Yet still Bitcoin has a larger market cap. Evidently, usage isnt driving Bitcoins price; speculation is. However, I do believe that this will change. There are several platforms being built right now which will allow users to spend their Bitcoin (and other cryptocurrencies) in every store through the use of cryptocurrency debit cards and smart apps that users can download. On top of this, I believe that more and more merchants will begin accepting Bitcoin as a legitimate form of payment. With the introduction of these 2 features, Bitcoin will suddenly be an accepted form of payment in every store. At this point, Bitcoin will have just as much of a real value as fiat currency. In this article, Ive been using Bitcoin as the example cryptocurrency because this question about Bitcoin speci Continue reading >>
Is Bitcoin Real Money? Some Things You Need To Know
Is Bitcoin Real Money? Some Things You Need To Know Angel Investors, Startups & Blockchain developers... Its been in and out of the news, and in again. At first glance it seems like nothing worth paying attention to, a joke praised by out-of-touch internet nerds and ivory tower intellectuals. Is it believable that bitcoin has been going strong for 7 years? During this time no less than 118 articles have been written about the death of bitcoin, there is even a site dedicated to recording these bitcoin obituaries . At this point, its safe to say bitcoin is here to stay. So.. what is it exactly? Bitcoin refers to two things: Bitcoin is a payment network similar to Mastercard or Paypal, and bitcoins (the currency) are the medium of exchange on the bitcoin payment network. Bitcoin is a global currency, which is traded person to person without any need for a bank in the middle. If we are to be precise about a definition, for something to be used as money it should hold the following properties: Scarcity. There needs to be a finite supply so that the currency maintains its value. There will only ever be 21 million bitcoins , no person can create more bitcoins. This is a rule which is baked into the bitcoin network, and has a very high degree of security. The vast majority of the people securing the bitcoin network would have to agree on a change to the network rules for them to change, this is highly unlikely to happen given they would agree to change the fundamentals of the network. Durability. This is an open and shut case; digital currency does not wear, tear or break. However, you can buy some physical items which have bitcoin addresses stored on them, for more information see opendime and casascius coins . Fungibility. Is each bitcoin is the same as each other bitcoin? B Continue reading >>
Why Is Bitcoins Price So High?
Zelda expansion, Death Stranding and other titles hyped at The GameAwards Bitcoins price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires. But is this a bubble? Are the gains real? And are the bitcoin whales in for a sad Christmas? First we must understand what drives bitcoin price and, in particular, this boom. The common understanding for current growth leads us back to institutional investors preparing for the forthcoming BTC futures exchanges. The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. CBOE Global Markets and CME Group are launching new futures contracts on December 10 and December 17, allowing investors to go long or short on bitcoin. This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls. This move also legitimizes bitcoin in Wall Streets eyes, an important point considering cryptocurrencies are still suspect. Further growth comes from the bitcoin as a store of value crowd. This group of enthusiasts bought and held bitcoin and will not sell it at any current price. More and more bitcoin fans are entering into this group and they are driving up demand increases. In a world where people expect bitcoin to be worth $1 million soon this sort of activity whether rational or irrational is quite popular. We see a common thread between these points: hype and news. All cryptocurrency movements are based on domain specific media and conversations between traders. Bitcoin traders, it can be said, are now akin to th Continue reading >>