Header Ads

Trust God

Bitcoin Is Creating A New Class Of Millionaires

Related image

Right at this very second, the largest transfer of wealth in the history of humanity is underway.  It has been going on since 2009, but it’s really picked up speed in the last 6 months.  

A couple of days ago, I wrote a detailed post on RVF explaining Bitcoin in layman’s terms.  I strongly suggest that every reader of this post spend 10 minutes on that explanation, but if you’re too lazy then here’s the summary:

Bitcoin is the world’s largest cryptocurrency, essentially money for the Internet.  
It is an open source Internet protocol, like HTTP.  It was hypothesized and first developed by an anonymous author or group under the name “Satoshi Nakamoto”.

Bitcoin is pioneering the idea of a deflationary currency, something which has never been possible before in humanity’s history.  Gold and silver come close, but not all of it has been dug out of the ground yet.  The only two possibilities for Bitcoin are that its value goes to zero, or increases.  There is no possibility that the value ever decreases or stabilizes (in the medium term).  In the long term, Bitcoin’s value will increase at a decreasing rate, but never stop, as it can be lost but not replaced.

Unlike gold and silver, Bitcoin can be essentially perfectly subdivided, and transmitted anywhere on the planet for almost nothing between any two parties with an Internet connection.

Bitcoin is decentralized like the Tor network, so it cannot be regulated or controlled by any government or authority body.  One Bitcoin has climbed from less than $200 to peaks over $1000 in the last month.  Every currency and medium of exchange on the planet is down against the Bitcoin over the last year, including gold and oil.

Innovation Means Winners And Losers

There is a hard limit of just under 21 million Bitcoins.  That means less than 1 in 300 people could own a full one, even if evenly distributed, which they are not (there’s already a number of investors that own hundreds or thousands or more).

One Bitcoin can be subdivided down into 100 million Satoshis (the smallest unit).   Even if the world’s money supply was entirely Bitcoin, one Satoshi would be worth just a couple of cents in today’s USD, allowing for small transactions. If this were to happen, many many people would be reduced to poverty, living their entire lives on a few Millibits (thousandths of a Bitcoin) or Satoshis.

The new 1% is anyone that currently owns at least one Bitcoin, the world just doesn’t know it yet.  Like this, but on a world scale.  For the most part, this includes white, technically-minded, middle-aged American men but increasingly comprises Chinese technophiles and a cross section of society in economically unstable countries like Cyprus and Argentina.

The US government is starting to clue in and realises it needs to know what’s going on, but all they need to understand is that they can benefit from supporting it, or be trampled as they attempt to regulate something beyond their control.

I can’t say it any better than one of the commentators on the linked article (although I disagree about the inevitability of war and death), so here’s “Dumbhandle”:

US Government: Pay attention. You have almost destroyed the future of our country by retarding bitcoin usage in the US with the ham fisted application and mismanagement of various regs. Wealth is fleeing already to China and accelerating. You have a very short time to deregulate in order to attract bitcoin wealth to the US before the bitcoin black hole inevitably sucks in all world fiat currencies and the flow of XBT wealth to China and other counties accelerates.

Against all odds, your Chinese colleagues have realized this and are working as a team to effectuate capital accumulation over there. They are winning, because they understand fiats and the petro are finished. You need to immediately pull in some experts from the bitcoin community to explain this to you so you can take proper emergency evasive action to reverse the flow back to the US. 

Here is your goal: deregulate to reverse the capital flight. Then watch the global conversion of fiat to bitcoin. Watch bitcoin accumulate in the most innovative place in the world, the US. Sit back and watch a golden age bloom here and it spreads globally. Any other course will result in wars and death on a massive scale. Now we will watch you screw it up.

Bitcoin Doesn’t Care
Just like hypergamy and evolution, Bitcoin doesn’t care.
It doesn’t care if you didn’t know
It doesn’t care if you don’t understand
It doesn’t care if you don’t believe

The critics will cry that “Bitcoin is just a bubble” (alternatively: pyramid scheme), and they’d be right.  It’s a bubble in exactly the same way as the US dollar, which also gets its value entirely from community consensus (the paper it’s printed with cannot be eaten, used as construction material and is pretty poor fire fuel).  I am more prepared to trust a democratic, distributed, deflationary technology than the self-serving government printing press, and I suspect a lot of others might too.  

I’m not alarmed by Bitcoin’s incredible growth, it’s just following the same S curve that tech giants like Facebook and Twitter tend to.

Absent from any flaw being found in the source code (which has been publicly available and reviewed for years), or more likely one being introduced by the core development team (still a vanishingly unlikely proposition), I believe 1 Bitcoin will be worth at least US$ 100 000 by 31st December 2016.  

The Winklevoss twins think even higher.  Max Keiser thinks even higher.  Even Peter Thiel (Paypal co-founder) agrees the revolution has begun.  Although ultimately, we’re all pure speculators on a very untested new technology.

The only other potential issue is advances in quantum computing that smashes apart current encryption standards, but that would cause far larger problems with all online privacy.  If anyone would come out on top it’s the forward-thinking and technically-minded Bitcoin community.

Adapt or live with regret among the masses.  You have been warned.  At the very least, do some reading and make an informed decision.

Bitcoin daily closing prices on MtGox for the last 4 years (to Nov 29), from sub-5 dollars to over $1000.  The closing of illegal, anonymous online marketplace Silk Road knocked the price off for a while, but it freed Bitcoin from any accusations of being useful only for drug deals.  

The road up is going to be rocky, but there is no stopping the train now.

NB:  In the time taken for this post to go through the ROK submission and editing process, closing prices have doubled.  The original version of this article had the graph below finishing at $450.



How To Make Money Trading Cryptocurrency

If you have extra money lying around, you’d be surprised what you can do with it.

With just a few dollars worth of Bitcoin you can start trading cryptocurrencies right now. There are no broker fees, there are no middlemen to deal with, nor really any barriers to entry or red tape. All you need is some percentage of a single Bitcoin. There is no reason not to try it out. If you can accept risking a few dollars, it’s a great way to get into cryptocurrency.

I started trading with less than $40 worth of Bitcoin.

I gradually traded my way up to 5.5 Bitcoin (worth over $5000 at the time) in less than a month or two. This isn’t to suggest that trading is something that’s easy or effortless. Losing money is an inevitable part of trading and investing, but you can certainly minimize risk and loses with the right strategies. The reality is that if trading were an easy, risk free way to make money, everyone would be a trader. However, if you’re a strategically minded person, patient, and able to research and analyze market trends, you’ll enjoy trading cryptocurrency.

But what is cryptocurrency?

Cryptocurrency is more than just a bunch of digital numbers that people have decided to use as money. The technology that was brought forth by Bitcoin is essentially a decentralized public ledger system, known as the Blockchain. This cryptographic Blockchain technology is what makes Bitcoin, Litecoin, Darkcoin, and other Bitcoin-alternatives a “cryptocurrency.”

Cryptocurrency is the real Occupy Wall Street

Being a decentralized ledger, the Blockchain can never be controlled or manipulated by a single institution. Its design makes transactions virtually error proof, and it can also do much more than just transfer the ownership of digital currency; it can be used for transferring assets and shares of companies, smart contracts, commodities, and escrow services. This technology will likely change the future of finance as we know it, democratizing financial markets while simultaneously eliminating “banksters.”

If you’re just getting your feet wet with cryptocurrency, all the technical jargon can seem overwhelming.

It’s important to learn, but for now, If you’re just interested in trading and investing, having a basic common-sense understanding of business, consumer demand, and economics is enough to give you an edge over other traders (at the moment). Most of the current batch of traders are early cryptocurrency adopters, cryptocurrency  “miners,” programmers, and basically people that are more tech savvy than business/market savvy.

They’re focused on small technological innovations that help build hype for a coin in the short term, without giving much thought about how the coin will exist outside of the exchanges and crypto community. This gives you a huge advantage.

We now have cryptocommodities

So let’s get started. First buy some Bitcoin.

There are some exchanges that will let you purchase specific cryptocurrencies for USD, but it’s a better idea to buy Bitcoin first. With some Bitcoin, you can trade into and out of every other cryptocurrency on the market, on every crypto exchange. Remember: you don’t have to buy a whole Bitcoin ($390 as of writing this); you can purchase Bitcoin in fractions known as Satoshis; for example, 500k Satoshis equals 0.005 Bitcoin. The safest, most popular place to purchase Bitcoin is coinbase.com, however you can also go to an exchange that has a USD-BTC pairing to try to trade USD for Bitcoin at a cheaper rate.

Now that you have some Bitcoin, it’s time to find an exchange.

The most reliable exchange I’ve found is Bittrex.com. There are other exchanges: some are good, some are bad, some have been shut down already — the Mt. Gox scandal might ring a bell. Some people are discouraged from cryptocurrency altogether when there’s news of an exchange getting shut down or coins being stolen, but I see all of this as a right of passage for any new market that is still in its infancy. I find it very encouraging that most of these shady exchanges have been terminated and their CEOs have been doxxed and sued to hell.

News spreads very quickly in the crypto world, so check news feeds daily.

You will usually see smoke before there’s a fire, as long as you pay attention to the news on twitter. Crypto exchanges and businesses are being talked about on twitter. Check in on twitter and crypto forums daily, follow hash tags, see what people are talking about. Information is power, news is power, and rumors are opportunities!

Once you have Bitcoin in your exchange account, you can start trading.

However, before you just randomly pick some cryptocurrencies and watch their charts, I recommend you do some research first; otherwise you’re trading blindly. The best way to learn about each coin is to search it, like “Cannabiscoin ann” – “ann” as in announcement. This search phrase will lead you to the bitcointalk.org forums, to the official announcement thread of Cannabiscoin.

An official announcement thread of a coin will show you important information: Total coin supply, technical details, development plans, mission statement, community speculation, and a lot more. Additionally, Twitter is a great resource not just for news, but tracking down web pages and other forums related to a cryptocoin.

Trading basics.

Researching the market is referred to as “fundamental analysis.” By gaining the right information at the right time and understanding how it will interact with the market, it becomes easier to stay predict trends — essentially whether or not a cryptocoin will rise or fall. In addition to fundamental analysis, you also have “technical analysis.” Technical analysis is equally important, but it refers specially to studying charts and finding patters—for example, at a certain price,  a coin will fall repeatedly.

The most basic but important thing to remember: Buy low, Sell high.

The best time to buy a coin is after it has been dumped.

Why? Because the people that didn’t cash out during the pump (called “bag holders”) don’t want to sell their coin at the bottom, at a much lower price. It goes without saying that if the price of a coin you’ve bought moves upward quickly, it’s best to cash out, back into Bitcoin. And If it’s a good coin that you want to invest in for the long term, make sure you buy back in after a dump. Sometimes it is better to focus on accumulating good coins rather than making more Bitcoin, because a good coin will always rise again.

That’s how trading is done.



Price Analysis For USDT, BTC, ETH, LTC


The year of Bitcoin

Year 2017 has started with A LOT of noise around Bitcoin.

On January 1st, its price was approx. 960 USD. On January 4th, it reached 1180 USD (+23% in 4 days), to then immediately plummet back to 960 USD as of January 5th (morning time PST).

This is how the price (and volume) graph looks like:

Bitcoin price and volume chart for the past 2.5 weeks
And, of course, when Bitcoin was rallying up, the usual huge group of people were ready to call 2017 “The year of Bitcoin”. Well, not so fast.

Let me tell you what I think about it.
1) The media has no clue
The media has NO clue on why the price went up, or came down again. The NYT was mentioning people buying bitcoins in Venezuela, where if you look at volume, almost nothing could be related to it.
My suggestion is NOT to listen to what the media says about it, especially if you want to base your investment decisions on what they write.
Most writers have NO clue. The few that do, they usually don’t write about it.

2) Do not daily trade
Unless you are a professional trader, DO NOT daily trade with bitcoin. Commissions are high, you are probably influenced by something you’ve just read, and you are defenseless against market manipulation and “pump and dump schemes” which are still very common.

3) A good investment strategy
If you are interested in Bitcoin as an investment, you might follow my simple investment strategy:
a) Buy bitcoins, and keep them for a relatively long time. Resist the temptation to buy more or sell unless you thought about it very carefully. I bought a significant amount, and kept it for more than three years now. It is paying off, but more importantly, I am not going to sell anytime soon because I fundamentally believe in the long term potential of this investment. I will consider selling my bitcoins in 2018 only if they hit above $5,000. Otherwise, I will keep them until 2020 at least.
b) If you are a technical expert, you might want to make bets on emerging cryptocurrencies, but only for a short time and only at the beginning. This behavior is more speculation that wise investing. Do it at your own risk. I did it five times, and it worked every single time (including with Ethereum)— I’m either very lucky, or I have good nose for what cryptocurrency is worth watching.

4) Any other reason to buy/use Bitcoin?
Frankly, no. 
Bitcoin is only a good store of value, at the moment. 
Very much like gold is.
If you live in a distressed country (e.g. Venezuela, Cuba, Zimbabwe, Siria), and you want to save money in a way that prevents confiscation, then Bitcoin might serve this purpose, but at the same time I highly doubt that it is easy for these people to sell their local currency in exchange for bitcoins. In other words, these people would need Bitcoin, but almost nobody is willing to give them bitcoins in exchange for their “shitty” currency.
5) Disclosures and personal interest
Think of the Bitcoin arena as the Wild West. Few rules, many “pirates” and bandits lurking around. Be extremely cautious whenever you hear a suggestion related to Bitcoin. Including me!
(In fact, here’s my disclosure: I have held bitcoins since 2012, and in relatively large quantity since 2013. I have “speculated” on a few other cryptocurrencies in the past, and have always disclosed it when writing about them.
I still hold bitcoins (but no other cryptocurrency), and I am keeping them for at least a few more years. I have a vested interest in the Bitcoin price to go up.)
Try to ask for a similar level of disclosure from anybody whose opinion you are going to consider when taking investment decisions.
In most cases, these people won’t disclose a thing. Which means… Be careful. It’s the Wild West, after all.

6) To do what you do, do you really need Bitcoin?
The most important question you should ask when evaluating a “Bitcoin” startup is the following:
To do what you do, do you really need Bitcoin?
An example? Startup XYZ is going to disrupt the 500 Billion dollars remittances business, by using Bitcoin to reduce transaction costs.
An utterly terrible idea.
To provide a remittance service, you need local distribution (a little shop in a little village in the Philippines, where your daughter can go to withdraw the money you’ve earned cleaning toilets for rich people in the US) on a global scale (if I want to send money to my family, I need to know that you can reach them whenever they are. I don’t want to look for the only small company that serves my small village. The remittances company needs to have a heavy presence in several countries).
Using Bitcoin doesn’t give you distribution. It actually doesn’t even save you transaction costs, because guys like Western Union simply use a few VERY large wire transfers between countries where the transaction cost represents a very low percentage, because it’s based on a long term agreement with large banks. Most of their costs are logistics and operations (having the actual dude at the airport or at the beer stand take or give you money to/from your relatives).
In other words… Your startup idea is total bullshit. And you are simply in love with Bitcoin or — worse — you are taking advantage of a lot of buzz and the abundance of inexperienced investors.
I’ve heard a ton of stupid ideas like this. If you are considering investing in Bitcoin startups… My best advice is simply: DON’T. (unless you really know what you are doing, of course).

7) The Bitcoin idealists
What about the idealists? Those people that tell you “Bitcoin will make the world better”?
I respect them, and I admire them. Bitcoin has a chance to become a great tool to increase our freedom. But investing in Bitcoin to profit has nothing to do with that goal.
If you really want to contribute to Bitcoin, donate to the Bitcoin foundation or a similar entity. Or even better, to the Electronic Frontier Foundation, which has nothing to do with Bitcoin but it certainly had a huge impact on our freedoms so far. (No, I’m not providing any links; google them).

8) Long or short, or else?
Do you want me to predict the Bitcoin price for the next several months?
Yes, I could do that… But I prefer simply to point you at my disclosure statement above. I am holding Bitcoins, therefore I think and hope that their price will go up substantially.
An exact number, perhaps a BIG number, would only serve the purpose of “feeding the troll”. There is enough noise out there already.
Simply put: if you believe Bitcoin is here to stay, it’s reasonable that its price will go up. I am long Bitcoin.
Also, please don’t ask me to invest in cryptocurrencies on your behalf. I am not doing it.

9) But the Blockchain!
I don’t understand people that say “I don’t care about Bitcoin, but I am really bullish on Blockchain technologies!”.
The value of a Blockchain is simply to overcome fail-stop failure mode and offer distributed consensus, without a central authority, in a way that is verifiable, etc.
However, the value of the Bitcoin Blockchain in particular is that Bitcoin has value. Without Bitcoin’s value, its Blockchain would be useless, because fewer and fewer people would mine bitcoins, and therefore a 51% attackwould become easier and easier.
I’m sure consultancy firms made a fortune selling stupid reports to big corporations, trying to convince them that the Blockchain is the next big thing. Some VCs did the same mistake. I’m sorry for them.

I hope you’ll have a great 2017. Be a Bitcoin monk, and don’t let a bunch of ruthless speculators take your money away from you by having you take financial decisions based on the panic of the moment. 

And, if you want to hold… Then HODL.
Bill Gates: ..........Bitcoin Is 'Better Than Currency' 

Image result for what did bill gates say about bitcoin

After long remaining mostly mum on Bitcoin, Microsoft’s legendary co-founder Bill Gates has spoken. At the Sibos 2014 financial-services industry conference in Boston, America's richest man just threw his weight behind the controversial cryptocash. Well, at least as a low-cost payments solution.  

At the event, when asked about Bitcoin’s potential to ease the cost of payment transactions for moving money from one place to another Gates waxed mostly positively about the virtual money.

“Bitcoin is exciting because it shows how cheap it can be,” he told Erik Schatzker during a Bloomberg TV’s Smart Street show interview yesterday. “Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”

Gates again reiterated his stance on cryptocurrencies when he delivered the event’s closing keynote address, in which he stated that, in the future, financial transactions will eventually “be digital, universal and almost free.”

While he seems relatively bullish on how inexpensive transacting in Bitcoin can be, Gates isn’t singing the praises of its anonymity. The billionaire alluded in an oblique, somewhat rambling fashion to some of the more nefarious anonymous uses associated with Bitcoin.

“The customers we’re talking about aren’t trying to be anonymous,” he told Schatzker. “They’re willing to be known, so Bitcoin technology is key and you can add to it or you could build a similar technology where there’s enough attribution where people feel comfortable that this is nothing to do with terrorism or any type of money laundering.”
To see the portion of the interview in which Gates directly addresses Bitcoin, watch the video below:

The last time Gates publicly commented on Bitcoin was last February, the day Bitcoin currency conversions debuted on Microsoft’s Bing search engine, when he skirted questions about Microsoft’s stance on the cryptocurrency and subsequent others during a lively Reddit Ask Me Anything (AMA) session.

Instead of answering Bitcoin-related queries head on, Gates shifted the focus to the Bill and Melinda Gates Foundation-backed Vodaphone M-pesa, a mobile phone-based money transfer and microfinancing service in Kenya. Gates said that his organization is “involved in digital money, but unlike Bitcoin it would not be anonymous digital money.” He went on to predict that “digital money will catch on in India and parts of Africa and help the poorest a lot” over the next five years.

Now that Gates is officially Microsoft’s technical advisor, perhaps he’ll make a push for Microsoft to accept Bitcoin (or another virtual money) as a form of payment and/or weave cryptocurrency into the company’s nascent “Zero-Effort” mobile payments initiative. Only time will tell.

Hmmm. We wonder what fellow billionaire Mark Cuban thinks of Bitcoin now.

Disclaimer:  Fireinthebone does not endorse any content or products.  We provide timely information and all we can obtain.  Readers should do their own research before taking any investment decisions as this article and numerous others we provide cannot be considered to be investment advice.


Powered by Blogger.