The primary disadvantage of Bitcoin Investment Trust is that the share price of the trust doesn't necessarily mirror what the actual bitcoin market is doing. For instance, shares of the trust right now trade at between $8.50 and $9. That price is more than 30% higher than the actual value of the bitcoin within the trust that each share represents. In essence, for every $1.30 you invest in the trust right now, you're only getting $1 worth of bitcoin.
A ledger is a database technology used to record transaction histories and ownership; it is a definitive account of who has given what to who, and who owns what. Most ledger technologies are physical and they’re centralized -- they’re controlled by a central bank.  This means that they are subject to the discretion and power of individuals, and are alterable and impermanent. This gives those ledger recording entities a tremendous amount of power over an individual’s financial transactions; it also means the ledger is vulnerable to manipulation.

Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.


One further benefit to bitcoin is that it is truly yours to own, and you can keep it yourself, without the need for a bank or any other intermediary, and use it just as easily as you might a credit card. This ensures that you won’t fall victim to a banking system collapse brought on by fractional reserve banking or irresponsible government and financial institution fiscal policies in general. It also ensures, however, that no one can take your money from you even on an individual basis, global financial apocalypse aside.

While the number of merchants who accept cryptocurrencies has steadily increased, they are still very much in the minority. For cryptocurrencies to become more widely used, they have to first gain widespread acceptance among consumers. However, their relative complexity compared to conventional currencies will likely deter most people, except for the technologically adept.


This is where the ‘crypto’, incidentally, in cryptocurrency comes from. Cryptographic hash functions are fundamentally necessary for the functioning of bitcoin and other cryptocurrencies, as they are one-way functions. One-way functions work such that it is easy to calculate an output given an input, but near impossible to calculate the original input given the output. Hence, cryptographic one-way hash functions enable bitcoin’s proof of work system, as it ensures that it is nigh-impossible for someone to just see the output required to unlock new bitcoins, and calculate in reverse the input that created that output.
NEW YORK, Dec. 4, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), today announced on behalf of the Trust that the Trust will resume private placements of shares today. The Trust plans to create shares from time to time in exchange for deposits of Bitcoin. Shares may only be created by certain authorized participants. Pursuant to the terms of the Trust's governing documents, the Sponsor may cause the Trust to cease creations of shares from time to time, including during affiliate sales windows.
I have been a crypto skeptic and don't really buy the "new asset class" argument. But this is not going to develop in a linear fashion. It is going to explode in terms of use when certain enabling conditions are met. Too important to write it off. Even if these discussions don't have much that is revelatory to the well informed on the subject, they still provide clues as to directions to follow for derivative trades that are a function of the disruption ahead.
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.

In the case of a watermelon, what we intuitively grasp is that there is some fundamental, intrinsic value to the watermelon, and a ‘fair’ price for it. We have a general understanding of what this price should be, and are more than happy to buy watermelons when they are on discount relative to their fair price, and are reticent to do so when they are being sold at a premium to their fair price.
Understand why the dip happened. Did the dip occur due to some rumor that will likely have a temporary impact? Was the crypto overbought and now it needs some time to cool off? Did it just fail an all time high twice and now we are likely headed for a longer term correction? If you have this answer, then you can better gauge if you should be buying the dip. To this point, also keep an eye on the news. Bad news can cause a correction to deepen, good news could result in a quick turnaround (making it hard to get buy orders in if you are waiting for signs of recovery before buying).
Investments, under this distinction, would be clarified as things that could generally be safely assured not to suffer from dramatic, catastrophic losses in the absence of dramatic, catastrophic situations. Coca-Cola and Walmart might be considered investments. They’ve been around for well over a century and a half century respectively, are massive, mature companies with a healthy track record of stable, non-volatile growth, and show no general signs of turmoil that might portend a sudden collapse in value.
Before going all in on ICOs, investors must understand that investing in Cryptocurrencies is an extremely high-risk endeavour. ICOs have a particularly higher risk profile as most of them are only at the conceptualization stage; they often do not have a working protocol/product and hence, there’s minimal indication that it is going to be a success or even viable in the long-term. Therefore, it is vital that thorough due diligence is undertaken.
We have several financial institutions trying to get an ETF to market, while thus far all have been shot down by the SEC, the Chicago Board Options Exchange (CBOE) seems to have the best shot to win approval due to their long-term reputation of excellence, new product innovation, and there bulletproof insurance. If any bitcoins get stolen, you can bet the customers are well covered. Many were counting on the SEC approving an ETF this month, but it will likely not happen until the beginning of 2019, but when it does, that’s when the real fireworks will begin.

Over the last half a year, Cboe and CME were not the only entities to have a dig at crypto futures, and Bitcoin was not the only asset underlying these contracts. Since March, UK-based financial institutions were responsible for a steady supply of breaking news in this domain. In March, a British cryptocurrency exchange operator Coinfloor made headlines by announcing the launch of the first physically settled Bitcoin-based futures product.
NEW YORK, Sept. 6, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (the "Trust") (OTCQX: GBTC), announced that it continues to work with the Trust's professional advisors and third-party service providers to understand the implications for the Trust of the fork in the Bitcoin blockchain that resulted in the creation of Bitcoin Cash.
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
What I ended up learning was something the smartest people in the investment world had learned a long time ago. Benjamin Graham, the mentor of Warren Buffett, who became the richest man in the world by practicing the principle of value investing, has a pretty wonderful analogy that I think is worth repeating here. You should buy your stocks (or any investment, generally) like you buy your groceries — not like you buy your perfume.

A long time horizon also gives us the opportunity of compounding gains over time. Look at the cryptocurrency market as the challenge to find the next Amazon and potentially enjoy larger long term gains. Who wants to be the type of guys to sell Amazon when they were up a little in the year 2000 and miss out on nearly two decades of heavy gains? Also, if you are convinced about the long term growth potential of a cryptocurrency project, why sell it in a few months time?


There have been a lot of new digital asset fund launches in 2017, but still only a couple of funds with more than $10m under management and even fewer with more than $100m under management. Flows into actively managed digital asset funds were strongest in the UHNW, family office and VC channel in 2017. We believe 2018 will mark the beginning of Wall Street and institutional capital entering the digital asset market. You’ll see endowments and global macro managers enter the market in a big way. You’ll see some sovereign wealth funds look to get exposure. That said, it is important to level-set. This is a still a tiny market. It’s a $300 billion market today, so it still has a ways to go before hitting mainstream.
At the time, however, these concerns seemed to have faded from the mainstream media’s radars. It wasn’t until May that they resurfaced full-blown following the publication of the San Francisco Federal Reserve Bank’s letter suggesting that the advent of Bitcoin futures and the coin’s price decline did not ‘appear to be a coincidence.’ The Fed analysists explained that the rise of crypto futures for the first time gave the ‘pessimists’ a tool to counteract the ‘optimists’ who had previously fueled the growth unimpeded. Another attestation in a similar vein has been Fundstrat’s Thomas Lee’s attribution of falling Bitcoin prices to Cboe futures’ expiration that made rounds in mid-June.
Technology development: this is a key aspect in cryptocurrency. If the technology behind a cryptocurrency is not fit for purpose, then it is likely that in the long-term, the cryptocurrency will fail. An example of a positive technological development is Ethereum’s recent Byzantium hard fork. This hard fork allowed for more transactions to be processed on the Ethereum blockchain. This positive technological development increases the likelihood of Ethereum being widely adopted, and so once again makes it a viable candidate for our portfolio.
It’s human nature to panic when something unexpected enters the fray, and cryptocurrency trading is no different. Experts agree that this human reflex is one major weakness in crypto trading beginners. This usually happens when the market takes an unexpected turn and the strategy that is being employed suddenly does not seem optimal for market conditions. In this state of panic, beginner investors frequently abandon their strategy if they did not expect or plan for these changes, leaving a considerable amount of value left unclaimed.
The short term price movements of a stock shouldn’t concern a long term value investor in the slightest, as a value investor doesn’t care about what the market has valued the price of a stock at, but rather only about the intrinsic value of the business behind the stock, and its future potential value. Only after coming to a conclusion about the actual value of a company and its future potential value, should an investor then look to what price the market has assigned a stock, in ascertaining whether or not a stock is a good purchase.

Great to get an update on this new asset class. I think any of us who ignore or dismiss cryptos are potentially missing a huge opportunity. As Dan says the risk reward is assymetric so why would anybody with a pragmatic attitude to investment not have at least a minimal exposure? Unfortunately too many people are happy to buy the negative propoganda of yesterday's winners like Jamie Dimon and Charlie Munger for whom the answer to the question of will bitcoin go to zero or a million will never matter! For most of the rest of us, we want to listen to the pros and cons of the narrative. Thanks RVTV for giving this important new asset class airtime. I would welcome more informative videos like this on cryptos.
If people have trusted gold to date as a store of value because of its inherent scarcity and resistance to centralized control and price/supply manipulation, bitcoin does all that and more, and does it all better. Gold’s scarcity, as illustrated above, is anything but constant, and we’ve more than doubled our world’s supply of gold in just the last 50 years. Bitcoin, on the other hand, has a precisely and publicly known proliferation schedule, and will approach the limit of its supply in just a few more decades.

"Virtual currencies might just give existing currencies and monetary policy a run for their money," International Monetary Fund director Christine Lagarde predicted last fall. "Citizens may one day prefer virtual currencies, since they potentially offer the same cost and convenience as cash — no settlement risks, no clearing delays, no central registration, no intermediary to check accounts and identities," she said.


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).
When all is said and done, there will hence be 21 million bitcoins. Exactly that, no more, no less. Elegant, no? This eliminates yet another risk with extant currencies, gold included: there are absolutely no surprises when it comes to knowing the present and future supply of bitcoin. A million bitcoin will never be found randomly in California one day and incite a digital gold rush.
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.

Great to get an update on this new asset class. I think any of us who ignore or dismiss cryptos are potentially missing a huge opportunity. As Dan says the risk reward is assymetric so why would anybody with a pragmatic attitude to investment not have at least a minimal exposure? Unfortunately too many people are happy to buy the negative propoganda of yesterday's winners like Jamie Dimon and Charlie Munger for whom the answer to the question of will bitcoin go to zero or a million will never matter! For most of the rest of us, we want to listen to the pros and cons of the narrative. Thanks RVTV for giving this important new asset class airtime. I would welcome more informative videos like this on cryptos.
WAX (World Asset Exchange) is an emerging project with a bright future. Developed by the founders of OPSkins, the leading marketplace for virtual video game assets. The WAX team has built the first decentralized exchange for gamers to trade digital-assets for nominal fees on a trusted platform. There’s a massive market for this platform considering there are over 400 million gamers who purchase more than $50B in digital goods every year. WAX is one of the few emerging projects with a built-in use case and existing user base which already has experience using cryptocurrencies to purchase digital assets. 
With the advent of smart contracts made possible by the blockchain, however, this is (soon-to-be) a thing of the past. One can create a simple smart contract at effectively almost no cost that specifies in code that each party will send it $100 in bitcoin, and that upon the completion of the election process, it will either send all $200 to the party that bet on Donald Trump winning the election, or send the $200 to the party that bet on him losing the election. No ifs, ands, or buts. The code is clear, objective, and deterministic. Either the contract is fulfilled in one direction, or it is fulfilled in the other. No need to trust the other party in the bet at all, much less a third party to mediate.
At the time, the bulls were firmly behind the wheel. Under rosy skies Reddit’s co-founder predicted $20,000 bitcoin sometime this year; there were promising signs that Ethereum’s developers were successfully addressing some of the scalability issues associated with the Eth network; IOTA gave the world a sneak-preview into Qubic; and the market looked good, having recouped nearly $200bn in value since the start of April.
Look at what the price has done over 1 hour, 24 hours, 1 week, 1 month, 3 months, 6 months, etc. and set limit orders just under highs and lows. For assets that are somewhat stagnant, this can net you solid buying and selling opportunities in the short term. This strategy essentially mimics fibonacci retracement levels, but requires none of the technical knowledge.
When buying altcoins, I always keep an eye on Bitcoin’s value, and over time I’ve made some important observations with regard to this. There are almost never three green days in row, and when the market is in the red, Bitcoin tends to decline less then altcoins. Once this happens, your order will be filled and you’ll get your 3% discount, since the altcoin tends to drop harder than Bitcoin.
The future of cryptocurrency is bright and cryptocurrencies are trending all over the world as the internet payments have been accepted by many companies. Cryptocurrency is trending payment and investment asset just like how people invest in mutual funds, real estate, market shares, silver, and gold nowadays. More investors are interested in investing their money on these cryptocurrencies, and the increased demand of cryptocurrency has increased its prices a lot.
When a coin has just skyrocketed by 300%, take profits. HODLing everything after such a major run-up is greed, nothing more. I’ve made this mistake more than once, thinking that it’s completely rational that since a coin’s value has gone up by that much, it will probably continue that way. It won’t. There will always be a correction. When you see a major run-up, like the one in December, it’s wise to start taking profits. How the hell can you buy the dip if you have nothing left to buy it with?

“There really isn't much benefit for Main Street investors to use the Wall Street futures. They can just as easily buy bitcoin directly. As well, the minimum contract size on the futures could be a barrier to entry. The contracts of the CME are set at blocks of 5 BTC each, which is more than most retail customers are used to dealing with. Even the CBOE contracts that are set at 1 BTC each are difficult to deal with for most people,” – concludes eToro’s Mati Greenspan.
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