Author: al chenkin

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Bitcoin and the Dead Cat Bounce

The “Dead Cat Bounce”

“A dead cat bounce is a temporary recovery from a prolonged decline or a bear market that is followed by the continuation of the downtrend. The name “dead cat bounce” is based on the notion that even a dead cat will bounce if it falls far enough and fast enough..” – Investopedia

The powers that rule the financial markets, The FED, the SEC, the World Bank, etc., all have one thing in common – they view Bitcoin as “the enemy” (The enemy of the Banks).  While volatility rages in the Bitcoin price, any downturn – or upturn is regarded as proof that Bitcoin is a sham or fraud, like the “Dead Cat Bounce”.

Unfortunately for the large financial institutions, Bitcoin is far from dead.  In fact, it is making a recovery from recent lows.  Is the cat bouncing?  You Bet it is.  That sucker is going up and down like a yoyo.  Count on it.

History teaches us that it takes 20 years to convert a financial fad into a trend, and a trend into an institution.  Bitcoin started in 2009, and is a nine-year overnight success. The banks deride Bitcoin, but almost all of them are using the Blockchain technology (the underlying bitcoin technology) for developing low cost and stable transactions.  With apologies to the Bard, “Methinks the banks protest too much”.

While the cat is bouncing, you can 
1) Enjoy the show
2) Keep calm and HODL on
3) Buy on what looks like it may be a “low”, and sell some on what looks like a “high”  (Note: it is generally agreed that no one can “time” the market, but with this much volatility, moving 20% in the course of a week, it could be a worthwhile risk – but don’t “bet the Farm” – know how much you can afford to lose, and keep Maalox handy).

Enjoy the show, Hold your coin and enjoy the highs, while avoiding despair when the price plunges and the Fat Cats project the “End of Bitcoin”.

Bitcoin Obituaries – Bitcoin has died 253 times
Best of luck to you, and may your Bitcoin portfolio go TO THE MOON!

 

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Bitcoin Stable (for the moment)…Stock market due for a “correction” – are you thinking what I am thinking?

The recent Stock market correction was a wake up call.  Many of my buddies saw some of their holdings go down in value, as their heart rates went up.  As a good friend, I asked how they protect themselves from a dip in value (we remember the 2009 stock and real estate markets very well).

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.
Second, review your diversity strategy – consider a small investment in a Gold fund or physical gold.  (Disclaimer, I own a Gamco Gold fund and some gold collectable coins).  Gold, and silver, in my observation, holds or increases it’s value when the markets have an “unsteady” moment.  I also own some Bond funds and Bonds, but they don’t throw off a large dividend.  Bonds are usually very stable through their term, so I am comfortable owning some.  Bonds are not a large part of my holdings.  I also have some Bitcoin (I have other articles on this blog that show you hoe to get some).  Bitcoin is unstable, but putting a “few bucks” into a fractional amount of Bitcoin is both a hedge on it’s future or a gamble.  Don’t bet the farm on Bitcoin, and if you do buy some, hold it – the volatility is real, as is “panic selling”.
Third, take a deep breath!  Do you own a home (most peoples greatest asset)?  Do you have artwork, a coin or stamp collection, a car?  All these assets (if not mortgaged to the hilt) are part of your net worth.  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.
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!
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, and just exited a position in RIOT. I also own some Bitcoin and Litecoin, and the other assets mentioned.
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Do you think Bitcoin belongs in a portfolio for diversification?

Cryptocurrency is like penny stocks in the 1990’s. There is risk, meaning you can lose your investment, and there is potential for reward, meaning you can make big money.  Think of bitcoin in December of 2017, when it reached a high of almost $20,000 per BTC!

Cryptocurrencies do not have a long history, and have a lot of  volatility (at the present time). I would consider the investment across a few cryptocurrencies or several Blockchain companies (as example: BTCS, BLOK, RIOT, BCCN – These are publicly traded) as a watchable trade or small investment, not a diversification move.

If you do consider Cryptocurrency as a diversification move, please don’t commit more than a small percentage of your assets to this emerging asset class – and certainly not more than you are willing to lose.

Cryptocurrency is starting to emerge as an “Asset Class”, but it is not there yet.  The old adage is “Bulls make money, Bears make money, Pigs get slaughtered” – and my addition, “Missionaries get eaten”.  Don’t be the first missionary in this asset class; take a slow and measured approach.

Don’t just take my opinion:

How to Start a Crypto Portfolio – Robert Leshner – Medium – Medium

Should your portfolio include bitcoin? Yes, but just a 2% position, says analyst – Marketwatch

Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)

Best of luck to you, and may your portfolio go TO THE MOON!

 

Bitcoin Watch – Men’s Wrist Watch – Classic Black Leather | Bitcoin Gift | Bitcoin and Ethereum Coin – Crypto to the Moon

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 BTCS, I also own some Bitcoin and Litecoin.

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It’s the Dip, Time to buy more Bitcoin? Or is Bitcoin Dead?

Bitcoin Prices dropped again this week.  There are lots of reasons for this, as I will outline, and some things you can do.
 
 

The war on Bitcoin is moving forward.  

Bitcoin continues to be volatile, and is traded 24/7 on international markets.

The pundits and writers are looking deeply into the situation, pointing to what makes bitcoin a volatile commodity.  https://lifehacker.com/why-bitcoin-s-price-is-so-volatile-1822143846

Some are decrying the death of Bitcoin!

Bitcoin is Dead (Again!) – Buy Bitcoin Worldwide
“Reports of my death have been greatly exaggerated” – Apologies to Mark Twain

But Bitcoin is NOT dead.  It is still used for purchases, transferring money between people (and across borders), and enabling commerce where the fiat currency is hyperinflated or devalued.  The Electronic ledger called the blockchain is being researched as a model for financial institutions to reconcile their monetary transfers, saving millions in fees. Look into What Is Bitcoin and What Can I Do With It? – by Lifehacker.

Books are appearing en masse to guide us on out Bitcoin journey, like Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)

So, what are we to do? 

Sit Tight – Sell it all (or part) – Buy more?

Sit Tight

Do nothing.  Take the long view, squash your emotion and fear, Stand back and watch, as the price fluctuates. This is what The Hodler’s do, keeping out of the day-trading madness, and keeping their Bitcoin long term.  Thee is an argument that points to Bitcoin prices going very high, possibly even $100k or more per BTC.  Keep in mind, there is a limited supply (21 million) Bitcoins that can be mined, and that is it.  This is the Long-Term view.  Bitcoin has been around nine years, and it most likely has many more to go, lets “Let it Ride”.  (Note: I may buy and sell, but I am keeping some Bitcoin, as I have a long view of Bitcoin).

SELL!

Sell it all, and be happy you got out before it “Really Tanked” (Unless it goes up, in which case you cry in your beer).  If this makes sense to you, consider selling your Bitcoin in parts, at levels you set.  This preserves your profit, and puts you in a cash position to buy more Bitcoin at what you think the bottom might be.

Buy More?

When the price drops, Bitcoin is cheap compared to buying at the top price. The risk is that you may be buying it all the way down to the “bottom” (which is an unknown price level that defies prediction, even with those claiming clairvoyant power).  FYI – Good luck predicting the next “Top” too.  Lots of people did not sell when Bitcoin hit $19,000 per BTC.

There you have it, based on my perception, these are the options we are presented with when Bitcoin prices take a nosedive.

Let’s be clear about something: there is no such thing as a meaningful Bitcoin price prediction. It just isn’t possible with the current structure. – Jeremy Arnold, Internal consultant. Past analyst/co-founder, on Quora (article presented on Forbes Website)

Best of luck to you, and may your portfolio go TO THE MOON!
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 stock.
 Don't Tread On My Bitcoin BTC Meme Gadsden Embroidered Hook and Loop Patch

 

 

 

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How do I identify a fake or scam coin?

Scam coins in the cryptocurrency world are coins that do not add value or have any use other than making the creators wealthy.

Bitcoin is the most well known coin, but there are plenty of Alt-coins, Bitcoin clones or new coins with purpose, mining pools, a whitepaper, and a form of exchange.  Not all Altcoins are good investments, or will hold up over time.  Investing in Altcoins is like investing in Penny Stocks in the stock market – Potential reward, Great risk, and many “pump and dump” schemes to increase the value so the early investors (scammers?) can cash out.  Please read on to learn some techniques for detecting cryptocurrency scams and altcoins.

There is a lot of information on this on the web:

 

If a coin looks too good to be true, it most likely is. If you are unsure of a coin, you can reduce your initial investment (don’t buy a lot), or set a time frame and watch it’s performance. Should you be really wary, step back and invest in the better known cryptocurrencies; Bitcoin, Litecoin, and Ethereum.

ICO’s are unregulated, and anyone can create and mine their own coin – this does not mean it will reach high levels of popularity or financial success. Coins need to have a purpose other than to make the founders wealthy.  The more you know and understand about how cryptocurrencies are manipulated is the best way to make good decisions on purchasing,- or not purchasing, any altcoins.

Cryptocurrency: How to Make a Lot of Money Investing and Trading in Cryptocurrency: Unlocking the Lucrative World of Cryptocurrency (Cryptocurrency Investing and Trading Book 1) Kindle Edition

I have other posts here in Bitcoin Money Man and on The Chenkin Report (Please forgive my shameless self promotion)

 

BE wary and cautious when investing in ICO’s!
May your investments go to the MOON!

 

Cryptocurrency: Insider Secrets – 12 Exclusive Coins Under $1 with Potential for Huge Profits – Amazon Books

Thank you for taking the time to read my research and cautions on investing in Altcoins.  Don’t risk more of your hard earned money than you can afford to lose, and be careful!
A fake story about a man selling Chuck E. Cheese tokens and claiming they were bitcoins went viral over the weekend. Unfortunately, it was fake.
Verification: The Daily Dot
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BITCOIN SWAG! T Shirts, Tokens, Keychains, Gifts – Things you can show off, and impress your friends!

Bitcoin Watch

 

Bitcoin hat umbrella jewelry

You should do more than HODL your bitcoin; you can show your support of the cryptocurrency movement by wearing Hats, Shirts, Jewelry, and stickers that show you feel strongly about Bitcoin.  More than a conversation starter, Bitcoin accessories show you are a money-smart, ready for the next “big thing” crypto-savvy person.  That is why we like you!

When you click on the underlined links, or pictures, the items will open in a a new window, with pricing and options on sizes and colors.  Enjoy and “To The Moon”!

If you have a friend who is a Bitcoin fan, you can get him or her some unique and classy accessories for their Bitcoin loving lifestyle!  Show them you care, and give them something they will treasure (just like their Bitcoins)!

-A physical manifestation of a digital currency, Plated in Gold.
Many people don’t understand the concept of money that only exists in the internet – and has no physical country that it is restricted to.  These gold plated “Bitcoins” Are just a physical token that “represents” a Bitcoin – their value is as a novelty item, and a distinctive gift.  “Want to see what a bitcoin looks like”? (If it had a physical form).
Bitcoin socks
Bitcoin Hats from Amazon – from eBay!

Bitcoin art and Prints

Bitcoin Posters, Paintings, more! – from eBay

 

Bitcoin Banners & Signs and MORE on EBay!

Bitcoin Coffee Mugs! from eBay

Bitcoin Coffee Mugs! from Amazon

Bitcoin Stickers
Bitcoin stickers

It’s pretty clear how we feel about Bitcoin, and showing off your Bitcoin is fun and a great conversation starter!  Our best sources (Amazon and EBay) are listed, and you can find lots of unique gifts from T shirts to Coasters to really cool artwork!
Thanks for taking a look – feel free to share!
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Where can I buy Bitcoin legitimately?

My preferred method is Coinbase. Here is my referral link: Bitcoin & Ethereum Wallet.
This link sends you to a Bitcoin sign up page. (Pardon my shameless promotion)
Coinbase is an “exchange” that allows you to link your bitcoin to your traditional credit card and bank accounts, and will sell you Bitcoin directly – and allows you to sell your Bitcoins to Coinbase.
While there is nothing wrong with buying or selling Bitcoin to someone you met on-line, and consummating the transaction at a local coffee shop. That has a greater element of risk, but keep it in a public place, with lots of people around.
Coinbase is a legitimate, established exchange for certain cryptocurrencies.  Coinbase also owns the GDAX exchange, where you can trade for reduced fees.  You can transfer Bitcoin, Ethereum, and Litecoin from Coinbase to GDAX without paying any fees, and the trades are near real-time.
If you like to play games, or want to mine Bitcoin with a “Bitcoin Faucet”, Take a look at freebitcoin.  This is one of the longest running Bitcoin “faucets” on the internet.  When you sign up, you can play their lottery game or engage in browser-based mining.  This is good if you have a computer running, and you want to use some of it’s chip power to mine (not a fast way to get rich, but hey – Free Bitcoin?)  The link appears after you sign up, under the “free Bitcoin” tab.  FYI, I have been earning Bitcoin with them for a while, its fun.

Bitcoin faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website.

Here is a list of Faucets you can work with – Bitcoin Faucets. I have not tested them, so let me know if they work for you (send me an email).
Never ever send a website any bitcoin to “validate” or “justify” a payout; that is usually a scam.  This Article from Hackernoon talks about some specific scams and how to avoid them.
Be careful and cautious, and you will avoid the scams that plague any emerging internet sensation!
Thank you for reading my blog!  Feel free to share!
 
 
 
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The Coin without a Country: Bitcoin

OK, Bitcoin prices trended Downward.  Has the sky fallen?
Just like stock prices, Bitcoin is finding it’s newest pricing Plateaus.  However, with the Price Volatility of bitcoin, understanding these “trading ranges” is like reading tea leaves to forecast the future.
Bitcoin is a global Phenomenon.   It’s not just a product to hold and invest in, it has a valuable purpose; if your local fiat currency is suffering from inflation and devaluation (or worse), you need Bitcoin to move money around, or get it out of the country without paying enormous fees.  In developing countries, women can conduct business in Bitcoin on a smartphone.  Muslim women who cannot enter a bank without a man to “conduct transactions” for them, can have a smartphone with a Bitcoin wallet under their Burka.  Their children bring the product to market, and they receive Bitcoin in return.  It solves a problem in these countries, and Bitcoin can be more stable than some government-backed currencies!
In the US, the dollar is a strong currency.  Bitcoin is not a necessity.  Many of my fellow Americans only see it as an investment medium; they would never consider using Bitcoin to build a business, as the dollar is more stable and respected world-wide.  The number of businesses that accept Bitcoin for payment is steadily growing.  Led by global businesses like Overstock, there are now hundreds (if no thousands) of businesses and even more individuals accepting Bitcoin for payment.  Even Craigslist is in on the act, with an “Accept Cryptocurrency for payment” check box.
While we watch Bitcoin, and try to understand where it’s “trading range” is, intelligent followers of Bitcoin realize, sometimes painfully, that it can move to higher or lower ranges in minutes.  Predicting the price is like forecasting stock prices or the weather.  The one thing I can assure you of, without hesitation, is that the price will change.  Most of my friends and associates are not panic selling, they are patiently waiting for the price to rise.  They have a lot of confidence in Bitcoin, since it is global and useful beyond mere investing.  Many of the “Alt-coins”, created in the image of Bitcoin, do not have wide acceptance, and are like “penny Stocks” and IPO’s, where the company behind the IPO can’t get traction and loses its value.  Many Altcoins have been mined, had their run, and become worthless (Not all are worthless, Companies and countries are going to be mining their own Altcoins).  With no lasting staying power, merchants, or ability to maintain their growth beyond a brief run, Many Altcoins fade out, while others are listed on the exchanges and actively traded.
Bitcoins global base, large pool of owners, miners, businesses, and exchanges give it more credibility and staying power than other cryptocurrencies.  There is also a finite amount of Bitcoin – so having some popular alternatives (Litecoin, Ethereum, etc.) is good – think of it like having choices between state-backed currencies; Dollar, yen, shekel, ruble, Mark, Pound, Peso, and the coin without a country, Bitcoin. (Did I just describe Forex trading basics?)
Whatever you are invested in, keep an open mind – Bitcoin is the “New Kid” on the block, and will have growing pains.  The sky has not fallen, but has got a few cracks in it.
(Disclaimer: I own Bitcoin, these thoughts are mine and not advice on what to do with your Bitcoin – just my personal view.)
 
Thanks for reading my blog, (and feel free to share)
Best of luck in Bitcoin,
Alan
More Reading:

Don’t just take my opinion:
How to Start a Crypto Portfolio – Robert Leshner – Medium – Medium
Should your portfolio include bitcoin? Yes, but just a 2% position, says analyst – Marketwatch
Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)

Best of luck to you, and may your portfolio go TO THE MOON!

Bitcoin Watch – Men’s Wrist Watch – Classic Black Leather | Bitcoin Gift | Bitcoin and Ethereum Coin – Crypto to the Moon

Disclaimer: This article 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,  I also own some Bitcoin and Litecoin.

 

Bitcoin Tee Shirts – Yoda Tee Shirts

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The Bitcoin Guarantee

One thing is Guaranteed when you have Bitcoin;

Volatility!

Bitcoin is unregulated, without government or regulatory controls (except market forces, both normal and manipulated).  It is also a very young form of monetary commerce, so no long term-trends are available to track.

 

Bitcoin has had a perfect storm of troubles since it’s precipitous high of almost $20,000 per BTC.  China and South Korea are trying to ban trading in Bitcoin;  it may destabilize their currency, and move money out of the country without government purview.  China is allegedly making their own coin (China planning the world’s largest state-backed cryptocurrency).  Venezuela is also planning a state -backed Cryptocurrency, the “Petro”.


Charlie Lee, who founded litecoin in 2011, said on Reddit Wednesday that he had “sold and donated” all of his litecoin tokens over the past few days — except for some physical ones he keeps as “collectibles.” – CNBC

In case you have not noticed, the death of Bitcoin has been reported by major news articles 309 times.

With this volatility, regulation, state-run competition, and exposure to negative opinion, It’s no wonder that Bitcoin is taking it on the chin. While some feel the need to kick Bitcoin while it is down, Many of the hedge funds have not sold any of their Bitcoin reserves, as many credible sources predict higher prices for Bitcoin in the near future.  They may even be buying more, as the next article states:

Bitcoin headed to $100,000 in 2018, says analyst who predicted last year’s price rise

Personally, I am not selling off my Bitcoins.  I have been buying all the way down.  And I am going to join the Hodlers keeping their Bitcoin and waiting for the pendulum to swing the other way, maybe even with another meteoric price rise.

Bitcoin is not a large part of my holdings, so I am not “betting the farm”.  But I am certain it will, as it has done in the past, have wild swings in valuation.

Many established finance people denigrate and even fear Bitcoin, because they don’t understand it, don’t see any regulation or protections, and worry it will siphon money from traditional investments in Forex towards Bitcoin.

Why the Big Banks Attacked Bitcoin

Bitcoin is 300 Times Cheaper Than Wire Transfers, Banks Take 83% Profit 

Product Details
Cryptocurrency: Mining, Investing and Trading in Blockchain, including Bitcoin, Ethereum, Litecoin, Ripple, Dash, Dogecoin, Emercoin, Putincoin, Auroracoin and others (Fintech) [2nd Edition]

Crypto Success: Investing in Cryptocurrency for the Long Term - Tips and Tricks by [Lema, Pablo]
Crypto Success: Investing in Cryptocurrency for the Long Term – Tips and Tricks

For me, I am staying the course, strapped in and enjoying the wild ride.  For those who are jumping with glee over the death of Bitcoin, well, we are certainly not there yet.

Yours in Cryptocurrency,

Alan

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.




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Want to learn more about Fintech?

Fintech is a mash-up of the words Financial and Technology.  It includes anything from Back office financial systems to Blockchain technology.
The uses can be pretty loose, from smartphone interfaces to “smart contracts”.
It starts with a Google search. Then you can break it down to what aspect of FinTech interests you the most. Then you can begin a deep dive, and determine where you want to be with it – Fintech Job, develop a fintech product, work on a blockchain project, etc. There is much to learn before you can effectively execute.

Fintech is Booming;  Smartphone banking apps, peer to peer cryptocurrencies, Blockchain technology  – all these and more are making up the new Fintech environment.  Fintech can enhance or eliminate your job, change the way you do business, and automate financial transactions with complete transparency and roll-back.  Learning the basics will help you navigate the waters in the new Fintech world!

Understanding Fintech and what it can mean for your business, job, or financial literacy will increase your value and guide future decisions.  Best of luck with Fintech in your future!