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!
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 .This Blog was Human-generated by the author, and not produced by a Russian blog Engine.   If you really liked it,  send some bitcoin in appreciation to my Bitcoin Address:
15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn
If you need a Bitcoin wallet, try Coinbase.

 

 

 

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.


Should I buy ICO’s (Initial Coin Offerings)?

Buying ICO’s and altcoins are like investing in IPO’s and Penny stocks.

Lots of potential reward, but real risk that you may lose up to all your investment.  Many ICO’s are for coins that have no practical use (you can’t buy anything with them) – only an investment value that may plummet at any time.  For Example, Bitcoin can be used to purchase goods and services from many established companies.  Altcoins need to be on exchanges, where they can have a value equal to Bitcoin (BTC) and other coins, so the altcoins can be traded.

If the ICO price is low, You may want to accumulate some over time – adding to your position (or abandoning it) as your comfort level permits.  Going “ALL IN” my be fun, but figuring where to start taking profit is a mystery, and many investors have watched their value climb, and then plummet, with little warning.  Remember, any profit is good profit.

Two sites you should look at are:

Live Coin Watch – Live coin Watch

How to Differentiate between legitimate and scam coins – IB Times

I strongly recommend that you don’t mortgage your house or max out your credit cards to invest in such unstable securities. Keep your head, study the market, invest with Money you can Afford To Lose.  Some people use their Bitcoin profit to invest in Altcoins.  Some altcoins have a social component, or are mined to benefit causes, like veterans (see Globalboost).  If you are actively mining, see this Mining Profitability Calculator.

Here are some books on Altcoin investing:

 


Learn all you can, invest smartly, learn from any mistakes you make.

Best of Luck with your alt-coins and cryptocurrency investments!

– Alan

The Last Word: