Right now, I can use my bitcoin holdings to pay for purchases at Overstock (OSTBP), or book a hotel on Expedia (EXPE). But if I use bitcoin to buy $25 worth of socks on Overstock today, and the price of bitcoin quadruples next week, I'll feel like those socks actually cost me $100. Then again, if bitcoin crashes, at least I'll always have the socks.
Design issues. Despite Bitcoin's massive rise in popularity over the past several years, it is not immune to design problems. For example, starting late last year Bitcoin transaction speeds became very slow because of a scaling problem related to the way the Bitcoin blockchain works. (You can read the details here.) That issue did not end up creating the existential crisis for Bitcoin that some analysts predicted, and the problem has now more or less been solved via something called SegWit. Still, the Bitcoin scaling issue was a reminder that a new type of serious problem may creep up in the future that undoes Bitcoin.

This is even more true of paper currency. Yes, you can utilize and reuse the paper for all the intrinsic value paper has. But what is that intrinsic value of paper? This is easy to answer, because we can just see how much the government pays to make paper money. $1 and $2 bills cost less than 5 cents to make on the low end of the spectrum, while $100 bills cost 12.3 cents on the high end.

“As we approach the anniversary of futures trading, we expect more institutional investors to make big moves with crypto dedicated funds. One recent example of this was the recent announcement of A16Z, a $300 million crypto fund launched by Andreessen Horowitz dedicated to investing in cryptocurrencies and other blockchain-related projects,” – notes Kulkarni.


Nvidia (NVDA) , a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio, and AMD (AMD) are companies that make several types of technology; AMD makes processors for desktop and laptop computers, while Nvidia's products range from automotive use to cloud servers. Where the two most successfully intersect, though, are their graphics processing units. Even in the age of ASIC miners, a strong GPU has proven to be a competitive (and much more affordable) way to mine bitcoins.
Monero (10%) – Monero is similar to Bitcoin in that it allows value exchange. However, Monero differs from Bitcoin in that it is focused on providing greater privacy to those that utilize their blockchain, using their stealth address mechanism. Anonymity is likely to become more and more important in a world where Bitcoin addresses can be traced. As more regulation starts entering the cryptocurrency space, an increasing number of individuals will gravitate towards privacy coins such as Monero, Zcash and Dash, that can mask their transaction activities.

If you invest a high percentage of our Total Net Wealth into cryptocurrencies, then you are exceptionally exposed to the ups and downs of the cryptocurrency market. This is not only potentially stressful, but could severely damage your Total Net Wealth and have an impact on your personal life. It’s all about balancing risk, whilst maximising the potential for gains.


This can all be a little confusing and James Altucher gives a great overview in his ebook Cryptocurrencies 101. The way I see it is that each cryptocurrency can be viewed as a public company. You would do your due diligence to figure out a companies potential for growth long term before investing in its stocks and James argues that the same diligence must be applied when investing in crypto. The main question to be asked here is:
On the flip side, if the world suffers a global financial meltdown on the scale of the Great Depression or something similar again, and fiat currencies start to crater, it very well may be such that governments are forced to resort to accepting bitcoin and other cryptocurrencies, if enough people simply flat out refuse to put their stock in fiat. This was exactly what the US government was forced to do just 13 years into their original experiment with Continental currency, when they agreed to promise to back all the currency they issued with hard gold and silver.
For many investors, being able to invest in bitcoin through the Bitcoin Investment Trust is worth paying a fairly expensive fee. The trust sponsor deals with all of the mechanics of investing in bitcoin, including obtaining cryptocurrency tokens, holding them in safekeeping, and then making any future transactions as necessary. Investing in the trust is as easy as buying or selling shares when the stock market is open, and that has real advantages over the lengthening processing times involved in handling actual changes of ownership in bitcoin tokens themselves.
From there, you’re ready to buy and sell Bitcoin based on the current market value. Rather than paying for a set amount of Bitcoin, you will tell the exchange how much money you want to trade, and they’ll break down how much Bitcoin you can buy. Unless you’re investing thousands of dollars into the cryptocurrency, you’re likely to be buying a fraction of one Bitcoin.
The emergence of Bitcoin has sparked a debate about its future and that of other cryptocurrencies. Despite Bitcoin’s recent issues, its success since its 2009 launch has inspired the creation of alternative cryptocurrencies such as Litecoin, Ripple and MintChip. A cryptocurrency that aspires to become part of the mainstream financial system would have to satisfy very divergent criteria. While that possibility looks remote, there is little doubt that Bitcoin’s success or failure in dealing with the challenges it faces may determine the fortunes of other cryptocurrencies in the years ahead.
Some bitcoin exchanges allow account holders to short — bet that bitcoin will fall in value — but the ordinary investor cannot do this as easily with bitcoin as with stocks or exchange-traded funds. Shorting is easy on the futures markets, however, as the trader simply buys a contract to sell a block of bitcoin at today's price sometime in the future. If it works out the price will fall and the bet will pay the difference.

Hi, unfortunately I bought bitcoin at the peak, then it fell all the way down before I switched over to some of the Altcoins you mentioned, however I didn’t realise the time I switched over to them, that the Altcoins were at a peak and when I switched they then fell down too leading to more of a loss. I also, feel a lot of those coins have maybe had their days of 100x, 10x their gains and had more potential at the time you bought into them.
The strategy isn’t guaranteed to be successful, but it is a smart and simple investing strategy that doesn’t take much skill or technical know-how to implement. Meanwhile, as eluded to above, if you want to add technical aspects, you can look at things like moving averages, support levels, RSI, and volume to get a sense of how low a price might go and get a sense of when recovery is likely. With the technicals added in, “buying the dips” can become a pretty solid strategy with a high success rate, without them, it is still generally better than FOMO buying the top or panic selling in a stagnant or bull market when the price pulls back (as it WILL pull back, crypto is volatile).
Bitcoin futures have fairly extreme pros and cons to them. Contracts are leveraged in that you're paying a fraction of bitcoin's actual price when you buy futures, giving you a chance to profit off them. However, the contract has an expiration date in the near future. If the price is down when it expires, you can't simply hold and wait to see if it bounces back; you just lose.
Even with the greater convenience that a trust whose shares are tradable has over actual bitcoin token ownership, paying a more than 30% premium to own Bitcoin Investment Trust shares is excessive. With it increasingly apparent that bitcoin ETFs are on the horizon, you'll likely have a better opportunity in the near future from them than you'd get from Bitcoin Investment Trust.
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A long-term investor using futures would have to buy a series of contracts to keep the position, but the futures exchange's customer fees tend to be small — as little as 50 cents for one futures contract — and the investor could stay in the market a long time before the costs exceeded those on a spot exchange, Mollet said. Brokerages like TD Ameritrade advertise commission-free futures trading, but would charge interest for margin loans, with the rate based on the size of the loan.
For instance, if two parties decide to make a bet on Donald Trump winning the election, historically, this could only be done by either word of honor or by some ad hoc legal contract. For a say, small $100 bet, it would be absolutely a non-starter to pursue legal action in the case that one of the parties decided to renege on the deal in the aftermath of the election. Normally, the reneged-upon party would simply be left in the dust without recourse.
The cryptocurrency exchange market is the unique trading option even in the midst of all the other seemly global market meltdowns. The cryptocurrency exchange market will offer the average individual the ability to take more control over their own financial future. The innovative technology automated cryptocurrency trading system developed by our company's specialists is based on modern advanced techniques and has been proving it effective for many years. The system applies no leverage along with the unique technologies enabling us to significantly minimize the risks in cryptocurrency trading and to generate above average results.
OPINION: The Wash Sale Rule Should Be Applied to Crypto OPINION: If the IRS Has Software For Tallying Crypto Profits and Losses… They Should Share it OPINION: Crypto Exchanges Should Have Reporting Requirements Why Does Tether Tend to Get Printed Before Crypto Prices Go up? The 12 and 26 Day Bitcoin EMAs Are a Good Gauge of Crypto Trends The Kimchi and GBTC Premiums are Good Indicators of Crypto Sentiment Beware the Cryptocurrency FOMO Being Partly in Cash Removes Some Stress and Adds in Fun 5 Tips for New Crypto Traders A List Factors That Impacted The January – February 2018 Correction
The above summary is not a complete list of the risks and other important factors relevant to an investment in any Vehicle, and is subject to the more complete disclosures contained its private placement memorandum and other Offering Documents, copies of which may be obtained from Grayscale. For the Bitcoin Investment Trust, additional information is available in its annual and quarterly reports on the OTC Markets website, www.otcmarkets.com. Such reports are not prepared in accordance with SEC requirements and may not contain all information that is useful for an informed investment decision. Past performance is not indicative of future results.
I feel compelled to spread the word; cryptocurrency is an amazing chance to make a fuck ton of money with a relatively small investment. The problem is, the window is closing. Many coins have already doubled in value many many times, the more a coin doubles in value, the harder it gets for it to double again and you to make a tidy 100% on your portfolio…
If you are looking to improve, using external tools is a must. The use of these tools is a small price to pay compared to the outsized returns and limited risk that they bring with them. There are a number of types of tools available currently, and each have their strengths and weaknesses. However, many believe that it is the next generation of crypto trading tools that could make a real impact on how people trade. While the current tools are certainly beneficial, they come nowhere close to the dynamism and flexibility brought by these new gen tools, especially those utilizing artificial intelligence and machine learning to better capture profits in the crypto market.
Bitcoin (50%) – When speaking about cryptocurrencies, it means speaking of Bitcoin. Bitcoin is the base asset for the other alternative coins, and is the primary decentralized crypto currency. Bitcoin was created by Satoshi Nakamoto back in 2009. Bitcoin is designed to function just like physical currency, which transfers value, and as time goes on more places accept Bitcoin as a legitimate way of payment.
There are already a number of proposed solutions to this issue, such as the implementation of the Lightning Network, but in order to implement these solutions, the majority of bitcoin miners must agree to update their bitcoin software. Many bitcoin miners are reluctant to do so, in large part because high transaction fees are good for miners, at least on a short term basis, as it means they earn far more per each block mined. The implementation of the Lightning Network and other solutions threatens to take away this extra revenue stream. Hence, users of bitcoin and miners of bitcoin find themselves at odds with a very understandable conflict of interest. It’s unclear as of yet how this will be resolved, though it seems the community is pushing forward towards a resolution, and I’m of the personal belief that they’ll get there eventually.
Josiah is an assistant editor at CCN. A former ancient and medieval literature teacher, he has been reporting on cryptocurrency since 2014. He lives in rural North Carolina with his wife and children. He holds investment positions in bitcoin and other large-cap cryptocurrencies. Follow him on Twitter @Y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.
I ended up wiring several thousand dollars to an incredibly sketchy Russian exchange, BTC-E.com, to purchase my first few bitcoins at around $1000 apiece. Before I knew it, I was addicted to constantly checking the price, and spent a full 48 hours doing nothing at the height of the November 2013 bubble doing nothing but refreshing BTC-E.com and seeing how my investments were doing.
The Ides of June saw a regulatory breakthrough that might prove highly consequential for crypto futures in the US, as the SEC Corporation Finance Director William Hinman had shed some light on Ethereum’s status as perceived by the regulator, suggesting that ‘current offers and sales of ether are not securities transactions.’ This statement has energized the industry and prompted Chris Concannon, Cboe’s crypto-savvy president, to speak of futures on ETH as of a settled deal. If Cboe breaks the path with such a product, it’s not difficult to imagine CME catching up quickly, given the firm’s partnership with Crypto Facilities, whose Ethereum derivatives infrastructure is already in place.
In the year 2018, we’ll see these aspects and more flourish. Imagine all of the industries in the world and imagine if each industry had a cryptocurrency backing it. Bitcoin is a very generic coin used in anonymous wealth transfer. We’ll see fewer of these generic coins come to exist; we’ll start to see very creative and ingenious applications of specific technology in very specific industries.
DISCLAIMER: Recommendations and Information found on Cryptopotato are those of writers quoted. It does not represent the opinions of Cryptopotato on whether to buy, sell or hold any investments. Investors should be cautious about any recommendations given. All investors are advised to conduct their own independent research into individual coins before making a purchase decision. Use information at your own risk.
Similarly, if you were able to bet at 1:2 odds (meaning if you bet $100 and win, you get $200) that a coin would yield heads, this would also be very +EV (positive expected value). The coin would still yield heads half the time, but that half of the time, you would earn $200, and the other half of the time, you would only lose $100. Hence, repeating this bet an infinite number of times would allow you to dramatically earn more money than you lost yet again.
As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once skeptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now?
Bitcoin trading occurs on exchanges. These exchanges accept your fiat currencies (like USD and EUR) in exchange for a cryptocurrency (like BTC). These exchanges maintain a liquid pool of bitcoin, allowing users to withdraw their bitcoin at any time. Investors who wish to trade on that exchange can deposit bitcoin into their personal wallet on the exchange, or make a wire transfer to the exchange’s bank account. The exchange notices this transfer, then credits your account.
I ended up making another big mistake here too, and figured that bitcoin had already gone up way too much, and that my best bet was to invest in some smaller altcoins as well. I made this decision after seeing litecoin (LTC) skyrocket from $4 to $40 in just a few days. The buzz at the time was that litecoin would be to silver what bitcoin was to gold. The price seemed incredibly low compared to bitcoin, and this made a superficial sort of sense (meaning, no sense at all), so I decided to jump in. For good measure, I also decided to jump into a few of the other most popular altcoins of the time — peercoin (PPC) and namecoin (NMC).
The Ides of June saw a regulatory breakthrough that might prove highly consequential for crypto futures in the US, as the SEC Corporation Finance Director William Hinman had shed some light on Ethereum’s status as perceived by the regulator, suggesting that ‘current offers and sales of ether are not securities transactions.’ This statement has energized the industry and prompted Chris Concannon, Cboe’s crypto-savvy president, to speak of futures on ETH as of a settled deal. If Cboe breaks the path with such a product, it’s not difficult to imagine CME catching up quickly, given the firm’s partnership with Crypto Facilities, whose Ethereum derivatives infrastructure is already in place.
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