Category: Bitcoin fear

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Cash Money, Change, Excitement, and Fear

Cash Money, Change, Excitement, and Fear of the Unknown Bitcoin.

When the US Government redesigned the $100 bill, Banks all over the world were set on by people with American Money.  They were seeking to change it to the new bills.  To an American, this is silly.  To people in other parts of the world, New money means the old money is (or will soon be) worthless.  This has a historical context.

Money and value change constantly, and throughout history we have seen many currencies come and go.  What of your Roman coins?  Payment in round pebbles or carved stones?  All were forms of currency that are no longer common or abandoned with the fall of the Empire.

Today we have seen the birth of a new form of money.  You can’t feel it or carry it in your pocket.  Electronic Currency has arrived.  Conceptualized in a paper by the mysterious Satoshi Nakamoto, the creator of Bitcoin, the “gold Standard” of cryptocurrency.

 

Cryptocurrency, like any new form of money, has purpose.  Proponents say it is the “next generation” of money and financial transactions.  Since it is “peer to peer”, and can be transferred person to person directly, without passing through a central clearinghouse or central bank.  Fees are low, and the transactions are immediate.  OF course, when easy transfer of funds is available, a certain “sketchy” element of society (money launderers? Drug kingpins? Arms Dealers?) finds it attractive.  Bitcoin achieved star status with Silk Road, a defunct website trafficking criminal materials and ungoverned commerce in prohibited (illegal) products.  The US Government acquired 25 million Bitcoins in the aftermath of the criminal investigation.

 

The Dark Side of Bitcoin: From the mechanisms of the Crypto-Currency to its criminal employment in the Dark Web

The Dark Side of Bitcoin: From the mechanisms of the Crypto-Currency to its criminal employment in the Dark Web – From Amazon books

 

Thus we see that Money is interleaved with governments, criminals, profiteers, history, and an underlying concern that your money may be worthless or converted to something else.  No wonder proponents of bitcoin have the zeal of missionaries, and enemies of it are passionately opposed and eager to see the Bitcoin “house of cards” come crashing down.  It is a fear that the current paper money might be as worthless as confederate dollars.

Bitcoin has survived almost four years.  I don’t pretend to have a crystal ball, but instead of being afraid, I am going to enjoy the show.

Bitcoin Stickers – For Home, Car, Laptop, more! On Ebay

Consider these books on Bitcoin (from Amazon):
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)

Thanks for Reading my Blog on Bitcoin!
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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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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

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15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn
If you need a Bitcoin wallet, try Coinbase.