Steindorff: Litecoin. LTC taught us a very valuable lesson about the strength of a brand and its corresponding community. We missed the boat on LTC early on because we felt that its use case overlapped too heavily with BTC. It was hard to imagine that LTC could gain any significant market share from its dominant predecessor but despite our beliefs, Litecoin’s brand and community have driven it to become a top 10 cryptocurrency with a lot of volume and liquidity. The lesson here was that the power of a trusted brand and a devoted community has the ability to outweigh innovative tech.
NEW YORK, Aug. 2, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (the "Trust") (OTCQX:GBTC), announced that a fork in the Bitcoin blockchain occurred yesterday, August 1, 2017. The Sponsor is monitoring events relating to the fork and the Bitcoin Cash resulting from the fork. A record date has not been established for the purposes of any distribution that may be made in connection with Bitcoin Cash. The Sponsor will announce a record date, if any, once established.
If you’re 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 bitcoin’s appeal. People or entities can buy and sell cryptocurrency anonymously, and there are fewer middlemen taking a cut of transactions. But it also means you can’t just buy bitcoin via mainstream investing tools like a brokerage account.
Bitcoin and other cryptocurrencies are continuing to rise in popularity, drawing both first-time and experienced investors. While the process to buy and sell Bitcoin has been simplified over the past few years, many people still find it confusing. With banks, credit card issuers, and governments worldwide getting involved with rules and regulations on how the currency can be bought and used, it’s no wonder some people are wary to invest in cryptocurrencies.
Ripple – Ripple is more in the nature of a payment protocol created and developed by a company named Ripple, which is based on the concept of Real time Gross Settlement. It was initially released in the year 2012. Also known as the corporate cousin of bitcoin, ripple is another cryptocurrency which saw sudden uptick in August. It shot from levels of 16 cents to 30 cents within a span of 24 hours on August 23. Since then, it has retreated back to levels of 20 cents.
The digital assets market will either be 0 or a multi-trillion dollar space. We obviously believe the latter. Highly disruptive technologies have always experienced tremendous challenges early on. Most people are unaware that even technologies such as the automobile and the lightbulb were initially met with massive resistance. Initially, technological breakthroughs do not have the right infrastructure in place to showcase their true potential. This will take time, but if it’s truly transformative the infrastructure will eventually develop, and the new technology will be accepted. We think the truly extraordinary returns will come earlier in the cycle from investors willing to take the extra risk. In my opinion we’ll look back on this day like it was mid-1990’s internet, we had the vision, but the true winners had not distinguished themselves yet.
Ripple (XRP) is a more recently popular cryptocurrency, although some argue that it can't really be called a cryptocurrency at all. It does, however, have a market cap of $19.2 billion as of this writing, 3rd largest amongst cryptocurrencies. Ripple is meant to act as something of a payment processing system that could allow for instant international money transfers. It has partnered with several notable companies, including American Express.
There's a long list of factors people may point to in an attempt to explain this. Regulators have taken a hands-off approach to bitcoin in certain markets. Dozens of new hedge funds have launched this year to trade cryptocurrencies like bitcoin. The Nasdaq and Chicago Mercantile Exchange plan to let investors trade bitcoin futures, which may attract more professional investors.
• You don’t necessarily need to understand MACD, RSI and Bollinger Band, the algorithms that help you decide if your currency has peaked or bottomed – though every bit of extra information can help move away from gut instinct to informed decision-making. But if you want to become a pro, maybe learn a bit of technical analysis (i.e. interpreting chart patterns). It works most of the time, though we’d say you should throw in a bit of fundamental analysis (i.e. contextual assessment) for good measure