Nervous about Bitcoin trending down?

If you are long on Bitcoin, Hodling vs. trading, then buying at the current prices (hovering around 7k USD per BTC), is smart.

bitcoins-millionaire-full-guide

I have some cash, and definitely long on Bitcoin, so I will be buying more.  Not all at once, in case it drops more. I want free cash available to buy more.

There is some fear that regulation is coming, and Google and Facebook are restricting Cryptocurrency ads, but Bitcoin is still viable and useful as a peer to peer trading mechanism.

In the US, we have a strong Fiat currency, the dollar.  (perhaps you have heard of it?).  Bitcoin shines when the Fiat, or local, currency is not strong, and fees and bank charges are large.  Think Venezuela, Argentina, South Korea.  Bitcoin activity in these countries is large, and growing.  Those governments can just print more fiat currency (which makes for rampant inflation) making Bitcoin a viable option for payments and moving money around.  (This happened in India, where their fiat currency was briefly worthless).

How Money Got Free: Bitcoin and the Fight for the Future of Finance

There is also a finite limit to the number of Bitcoins in circulation; 21 Million.  No government or “Bitcoin regulator” can just create more – like the governments do with paper currencies – it is fixed and will allow the price to rise once all 21 million are created through Bitcoin mining.

This means that 80 percent of all bitcoins that will be in existence have already been mined. According to estimates, bitcoin will reach its final coin figure sometime in 2140.Jan 15, 2018

Only 20 Percent Of Total Bitcoins Remain To Be Mined | Investopedia

https://www.investopedia.com/news/only-20-percent-total-bitcoins-remain-be-mined/
As I see it, there is a lot of activity in Bitcoin going  on, and volatility, mining, facebook bans, etc., will all have an effect – but not kill off Bitcoin.  You can see the current stats on how many times Bitcoin has been declared “Dead” on 99bitcoins.  (spoiler alert – 273 times as of this writing)

Hodl on, and (if you feel like I do) Go long on Bitcoin!
To the Moon!

Thank you for reading my blog, and feel free to share!  Best of luck with Bitcoin and all your investments! 
If you enjoyed this blog, please feel free to share! 


Disclaimer: This answer is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice. I currently own BTCS (Bitcoin Shops). I also own some Bitcoin and Litecoin, and the other assets mentioned.

Check out my other Blogs:

Have you heard of The Bitcoin Misery Index?

The “Bitcoin misery index” created by Wall Street strategist Thomas Lee indicates this is a good time to buy bitcoin, according to CNBC
Lee has not changed his midyear price target of $20,000 and his end year price target of $25,000 for bitcoin. CNN
Bitcoin News from a typical Google Search
Lee, co-founder of Fundstrat Global Advisors, told CNBC’s “Fast Money” Friday that when the bitcoin misery index falls below 27, bitcoin sees its best 12-month performance. Such a signal comes about every year, the strategist said. – CNN
“The bitcoin misery index is meant to be a contrarian indicator. When the misery index is low, investors should buy, and vice versa. The index takes into account factors such as the number of winning trades out of the total and volatility.” – CNBC
All I can say is that Bitcoin is still the wild west of investing, with Warren Buffett Saying it is a Bubble and “most likely “heading for a bad ending”,  and JP Morgan’s Jamie Dimon attacking and then rescinding his opinion on bitcoin.
Regardless of the passionate comments made by all parties when Bitcoin is mentioned, we can be sure that volatility and controversy will carry the day, as the market indices are created, compared, publicised, and mulled over.

Best of Luck, and “To the Moon”
Thanks for Reading my Blog on Bitcoin!
All rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. Some links are promoted so the author can maintain his starbucks coffee habit. If you enjoyed this blog, please feel free to share .
If you need a Bitcoin wallet, try Coinbase.


(send one to Mr. Buffett as a gift)

Has Google given us an amazing Bitcoin buying opportunity?

Google announced they are going to Ban Bitcoin ads.
While HODL’ers are crying in their beer, I am seeing a huge buying opportunity!

Google Bans Bitcoin Advertisements in Policy Change

When asked how I do it, my plan was both simple and works for me.  Everybody has a different situation.  Motley Fool has an article on “stocks to buy during a market crash“.  I imagine some people put cash  under their mattress.  Here is what I do;:

First, DON’T PANIC.  Panic makes you buy high and sell low.  Ask your friends who invest, take a shot of whiskey, don’t be “quick on the trigger”. THE MARKETS ARE CYCLICAL.  Ups and downs are expected, and can be profitable.  Wait a day or two and see what happens when the smoke clears.

Cryptocurrency 2018: Mining, Investing and Trading in Blockchain, including Bitcoin, Ethereum, Litecoin, Ripple, Dash, Dogecoin, Emercoin, Putincoin, Auroracoin and others (Fintech) [3rd Edition]
Bitcoin is a relative newcomer to the market.  As it’s popularity grows, large swings in valuation are happening.  This is normal.  It will take years for the Bitcoin price to stabilize.  Let me share my opinion on this; unless you need the cash, don’t sell (especially if you bought high).  If you are truly afraid, liquidate your position slowly, to take advantage of any uptick in price.  There may be a “Dead Cat Bounce“.


If you have some cash handy, consider buying more bitcoin – The herd is driving the price down, and I believe savvy investors are quietly buying more.  This may even be a ploy by Google insiders, who may be quietly buying bitcoin as the price tumbles.  (disclaimer: I have no knowledge of this, it is purely speculation).

Early Bird Gets The Bitcoin: The Ultimate Guide To Everything About Bitcoin
Take a deep breath!   If all you own are stocks and the market crashes, you can see a market drop eroding a large percentage of your assets in days.  Same goes for Bitcoin – If you are not diversified, consider selling some bitcoin and put it into the stock market, which is doing pretty good right now.  
So now you know what I am thinking.  It’s not “All Bitcoin, all the time!” It’s about being smart with your own pile of assets and investments and money that you need to make “bigger”.  Pulling some profit out of the market, and buying Bitcoin is part of a strategy to get into cryptocurrency, and it is a wild ride, as it goes up and down with regularity!  So don’t “bet the farm”, spread your money around (stock market, bitcoin, collectible things, gold, etc.) and hopefully, over time, you will watch it grow into a nice nest egg.  Remember, it does take time – investing is not like a winning instant lottery ticket – it’s like a winding road, with ups and downs.

Your financial journey should be more than money.  Money can buy things that make you happy.  I own an antique slot machine.  It was not cheap, but my “one-armed bandit” is fun and anyone that visits can’t resist putting some change in it.  It is also worth more than what I paid for it, and my heirs will either sell it or keep it, based on what they like.  Or I can sell it or “trade up” based on my feelings about this machine.  It’s picture is below.  I enjoy showing it off, and feel like I own a casino!  (I am also thinking of some way it can pay out in Bitcoin; still working on that).
Now you have seen my real strategy – Take some stock market profit off the table, and diversify with Bitcoin and collectibles. Also run this by your financial advisor – don’t just take my word for it; like I said, this works for me – you need to find what will work for you!  

Thank you for reading my blog, and feel free to share!  Best of luck with Bitcoin and all your investments! 
If you enjoyed this blog, please feel free to share! 

Disclaimer: This answer is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice. I currently own BTCS (Bitcoin Shops). I also own some Bitcoin and Litecoin, and the other assets mentioned.

Check out my other Blogs:

What are the incentives for modern governments with fiats to adopt Bitcoin, aka cryptocurrency?

It’s all about:

CONTROL.


A government controls its currency and will not be able to control/dominate Bitcoin (unless it mines its own coin, as the currency of the realm).


Bitcoin purchases and transfers are “peer to peer” transactions. Using the Blockchain (the Bitcoin ledger system) no central clearinghouse is required to regulate any transaction; it occurs between two parties. The Blockchain is a transparent ledger that just records the transaction (in very simple terms). Individuals keep their Bitcoin in “Wallets” on smartphones or computers, or on specific websites that deal in currency transfers (like BTC to USD).

Governments regulate volume of money, interest rates, fee structures, and monitor it’s value against other fiat currencies. Financial transactions outside of government control (with no fees going to the monetary “gatekeepers”) are a nightmare for financial ministers everywhere.

In my opinion, Bitcoin is one component of the financial mechanism any government needs to work effectively. I am not convinced that cash (or precious metals) are going away anytime soon, but governments fear that losing their money-printing ability will weaken them considerably.

Banks and some governmental entities are scrambling to utilize blockchain technology, while publicly denouncing or denying Bitcoin as a monetary vehicle. Most notable among the nay-sayers was Jamie Dimon, of JP Morgan Chase.
Image result for jamie dimon
Dimon himself has publicly said he sees potential in blockchain tech, and his company just announced this month the launch of a blockchain-based pilot to “significantly reduce” the number of entities needed to verify global payments, which would cut down transaction settlement times.

Countries with High inflation and unstable Fiat currency (Argentina, Venezuela, as examples) have seen Bitcoin transactions flourish as there are low or no fees, and Bitcoin valuation is more stable than the Fiat Currency.
Cryptocurrency Primer: Everything You Need to Know About Cryptocurrencies and How They Are Different from Regular (Fiat) Money (With Mining Guides for Bitcoin, Ethereum, Litecoin and ZCash)

Bitcoin and the blockchain are new entrants in the carnival of Financial Instruments, and (despite the nay-sayers) will be around for a while.
Thanks for reading my article! – Feel free to share!

Originally published by Alan Chenkin on LinkedIn.
(Disclaimer – I own Bitcoins, and cash – US Dollars).

ll rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. Some links are promoted so the author can maintain his crypto habit. If you enjoyed this blog, please feel free to share and send some bitcoin in appreciation to my Bitcoin Address:

15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn

If you need a Bitcoin wallet, try Coinbase.


How can a currency become worthless?

Most currencies are Fiat Money, not backed by a commodity (like Gold and Silver) but backed by the government that printed it.
Fiat money is a currency without intrinsic value established as money, often by government regulation. It has an assigned value only because the government uses its power to enforce the value of a fiat currency or because the exchanging parties agree to its value.
It was introduced as an alternative to commodity money and representative money. Commodity money is created from a good, often a precious metalsuch as gold or silver, which has uses other than as a medium of exchange (such a good is called a commodity). Representative money is similar to fiat money, but it represents a claim on a commodity (which can be redeemed to a greater or lesser extent). From Wikipedia

If the government behind the Fiat currency becomes insolvent, or acquires extensive debt, their currency may be devalued (relative to other Fiat currencies), their ability to borrow money will be affected (lenders will demand higher interest rates because of the risk), and prices will climb as the currency loses value. At present, Venezuela, Argentina, Zimbabwe, and other countries are suffering due to the inflation they are experiencing. 

Some related websites:
What would you do if your money became worthless? – Prosperous Way Down website
A worthless currency – The Economist (Article on Zimbabwe)
The Greek Crisis Explained – (Infographic) – from Gainesville coins
Many people invest in Gold and Silver as a “Hedge” against devaluation. This can be done with collectable coins and jewelry, or bullion. 
Bitcoin to the Rescue
When fiat currency is failing, the citizenry need a mechanism to trade and move money out of the country without fees and taxes; Bitcoin is an obvious choice.  As a “peer to peer” unit of value,  Bitcoin has minimal fees and a global reach.  It is an ideal mechanism to prop up people when their monetary system is in a shambles, and the value of the local fiat currency drops.
 
In Venezuela, Zimbabwe, China, and other countries, Bitcoin is the method of choice for doing business without government oversight, transfer fees, and excessive taxation.  Even in countries with stable currency, Bitcoin is a welcome addition to the mix of fiat currency, gold, and silver, for acquiring wealth and conducting business transactions.
Here’s hoping your value is strong!
All rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. Some links are promoted so the author can maintain his crypto habit. If you enjoyed this blog, please feel free to share and send some bitcoin in appreciation to my Bitcoin Address:

 

15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn
 

If you need a Bitcoin wallet, try Coinbase.

Check out my other sites:

Is it time to join the Gold Rush of the Initial Coin Offerings?

By Alan Chenkin – Was mining Bitcoin back in the Gold rush days of 2011

When you get close to fully mining the entire 21 million bitcoins that can be mined, what do you do with all that mining equipment,  optimized by being in areas where cooling and low cost power is available?  
The answer is simple – Initial Coin Offerings!  Each coin requires:

·         Its own blockchain
·         People and groups mining, and using existing equipment to mine the ICO
·         Getting listed on exchanges, so people can buy the new coin with Bitcoin, crypto, and fiat currency
·         Technology based on Satoshi’s work (essentially a Bitcoin clone, with some bells and whistles)
·         Claims of additional utility and security, with white papers and some “reason for existing”
·         Coins to be “Pre-Mined” (sold at a discount, to finance operations), sometimes as much as 50-60% BEFORE the coin is released
·         And a ton of Hype (Have I told you about my new Chenkin Coin – it’s using the Blockchain to cure hunger, banish diseases and create world peace – GET IN ON IT NOW! – NOT.)

·         FOMO.  Fear of Missing out – for all the people who did not buy Bitcoin very low, “and want to get in on the ground floor” in the new coins ICO

This is not a small or capricious undertaking.  According to Morning Brew, a daily news feed,

  • ICOs have raised $1.7 billion so far this year, on track to pass last year’s $6.5 billion.
  • An MIT report estimates that up to $317 million from ICOs has gone to scams.
  • Hedge funds and private investors receive special treatment to buy tokens at discounted rates. Some immediately flip them for large profits.

This is big business. At this writing, activity in Crypto-mining is way up.  Hedge Funds are in it big time (and those guys are all about making big money).

Here is the point that caught my eye, $317 Million (approx 20%) HAS GONE TO SCAMS.

Don’t get me wrong, I am a big fan of Bitcoin and Cryptocurrency in general, but bad actors are making a killing here – and pumping out legitimate seeming coins for only one purpose – pump and dump.

For me,  a  20% chance that I will lose my money is a big risk.  The landscape is littered with coins that tried, and couldn’t match the success of bitcoin, Litecoin, Ethereum, etc.  So I watch the ICO show – filling my inbox and littering the chat boards with claims of being the next best thing, and keep my damn hands off the buy button!

Big money is in this, and I am tempted, but I am not an insider in these coins, so I treat it like stock tips.  If someone is telling ME about a hot investment, it’s usually not a good tip.

ICO Tutorial: 3 to 1 guide of how to create your own ICO – Initial Coin Offering, evaluate companies who offer ICO, trade and store them + Bonus Book

ICO Tutorial: 3 to 1 guide of how to create your own ICO – Initial Coin Offering, evaluate companies who offer ICO, trade and store them 

Invest with your head, don’t bet more than you can afford to lose in new ICO’s, and have fun.  A few hundred dollars invested in my Chenkin Coin can give you months of excitement before I cash out and it’s value drops to zero.  You can buy it on the worldwide Crypto exchange (designed for suckers, er, “Savvy Investors”),

I hope you, like me, will enjoy the show, and invest in ICO’s with spare change and a well-earned skepticism,  as the hedge funds and Winklevii work the room.  And it’s a big room!

Thanks for reading, and may your crypto investment give you enjoyment as it goes – wait for it –  TO THE MOON!


More Reading:
All rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. Some links are promoted so the author can maintain his crypto habit. If you enjoyed this blog, please feel free to share and send some bitcoin in appreciation to my Bitcoin Address:

15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn

If you need a Bitcoin wallet, try Coinbase.




Disclaimer: This answer is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice. I currently own BTC. LTC, and ETH.  

PS: chenkin coin does not exist except in the authors cranium. If you want to help me start an ICO, drop me a line – Alan