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.

The Last Word:

Bitcoin Tee Shirts – Yoda Tee Shirts

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”.


“In the U.S., state regulators are becoming more active with BitConnect shuttering its cryptocurrency exchange and lending operation after receiving two cease-and-desist letters from the Texas State Securities Board and North Carolina Secretary of State Securities Division for the unauthorized sale of securities and suffering from denial-of-service attacks.” – Bloomberg

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.
The Last Word:




Want to learn more about Fintech?

Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin. From: Fintech Definition | Investopedia
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!

The Last Word:

 

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:

How to get started with the new money, Bitcoin

Greetings and welcome to the Bitcominmoneyman blog!

Bitcoin started in 2009, based on an anonymous paper on building crypto-currency by Satoshi Nakamoto.

 

Satoshi Nakamoto is the name used by the unknown person or people who designed bitcoin and created its original reference implementation. As part of the implementation, they also devised the first blockchain database. In the process they were the first to solve the double-spending problem for digital currency.” (from Wikipedia)

Bitcoin is a “Peer-to-Peer” digital currency, which means individuals can transfer Bitcoin to and from their digital wallets without fees or regulation by banks or governments.  Since Bitcoin is available globally, it is outside of the fiat currency controls of any one government.

This is why most bankers and Governments openly criticize Bitcoin  – They can’t control or make money from it.

Here are some books on Bitcoin, for more detailed reading (much more detailed than this blog):

 


Bitcoin is unique in that all participants in the currency have access to the ledger that records all the transactions, known as the “Blockchain”  “A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.” – From Google Dictionary.  “We can actually have a look at the blockchain and see evidence of what’s going on”.

Bitcoin: The Ultimate Beginner Through Advanced Guide on Everything You Need to Know About Investing in Bitcoin, Blockchain, Cryptocurrencies, … Future of Finance

Now that we have a base understanding of Bitcoin and the Blockchain, You can get your own digital wallet (even if you don’t have Bitcoin – yet).  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 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 with the Coinbase wallet or application. 


As for a way to get “Free Bitcoin”, I will be writing about Bitcoin Faucets in my next Blog Post.
 

Thanks for reading, and your interest in Bitcoin!