Bitcoin

Bitcoin reaches a milestone of $15,000 – What’s in store for this cryptocurrency?

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It was on 7th December, 2017 that the value of Bitcoin surpassed the threshold of $15,000 for the first ever time thereby making yet a new milestone it its rapid movement. As per what reports have to suggest, this particular cryptocurrency has went through a staggering rise in value, rising from $3500 during the middle of September, 2017 to its present rise which is a meteoric rise. During the beginning of this year, a single Bitcoin was worth an amount less than $800.

People are guessing as to what would happen in the near future of the value of this cryptocurrency. It has been a long time since when Bitcoin has stopped being used as a currency for buying things, perhaps because of the fact that its value has been soaring higher and higher with time. Hence the question among the financial speculators is that, ‘is it a bubble?’ If answered yes, then when is this going to burst?

There are some traders who think that we’re almost getting close and hence they’re trying to short Bitcoin or make wild guesses or bets that the value is certainly going to decrease in the near future. One of the experts has said that this is one of the biggest opportunities for shorting. There are lot of people and zealotry who feel that this is the biggest ever thing that is going to occur ever in the history of mankind. At the same time, there are lots of people who think that this is nothing but a bubble or a Ponzi scheme. Well, both can’t be accurate with their predictions.

Though the usual trend for the valuation of Bitcoin is just up, the cryptocurrency has always remained excessively volatile. For instance, in the month of November, the value of Bitcoin plummeted by 20% within less than half an hour, thereby falling from $11,000 to $9000. If you’re a true believer, you will think that these are nothing but temporary blips but at the same time, there are few sceptics who caution the fact that any kind of plunge could become permanent. Similarly, after crossing the threshold of $15,000, it’s value soon after dipped down to around $14,800.



Energy costs are yet another issue which has been brought forth by the staggeringly high valuation of Bitcoin. In order to sustain the Bitcoin network, it takes huge amounts of power and it has been estimated that this particular cryptocurrency consumes as much electricity as does the whole of Denmark. Whether or not this prediction will rise or fall in the near future is tough to predict but now Bitcoin is just used as a specific asset class and this is more unsustainable.

Amidst all this, the financial experts are striving hard to make out some sense out of this entire phenomenon. People who use other currencies find out utility in a static value but this can’t be found in the world of Bitcoins. The only question in this game is how high will the scores go?


The guide to trading Bitcoin

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Bitcoin is the first digital currency in the world, its role as a unique financial vehicle has made it a reckoning force in the crypto market. Bitcoin is a peer to peer currency, this means that transaction is direct with no need for central authority or middlemen, with this, you can send Bitcoin to anyone in different parts of the world, all you need is a Bitcoin address and internet access. According to a financial analyst at Wilkins Finance, Bitcoin offers numerous advantages compared to the traditional money transaction methods. The most significant advantage is the low cost of receiving and sending Bitcoin as well as a secure and irreversible Bitcoin. It has also been proven to ensure privacy and security in transactions.

The currency is developing and growing stronger. Trading Bitcoin can be very profitable for those interested. The Bitcoin market is fragmented with large spreads, hence, people can profit from trading Bitcoin. Furthermore, thepopularity of Bitcoin has brought new users and investors, thus, expanding the cryptocurrency market. There are two ways to tradingBitcoin, this includes buying the cryptocurrency itself with the intention of selling it for profit or speculating the value of a Bitcoin without even owning a token, this is how CDFs and spread betting works.

While Bitcoin is a very profitable market, you have to have an ample knowledge of the rudiments of trading in order to excel and make huge profits. Losing your Bitcoin during trading can be terrible and painful, hence it is best to be careful and avoid all kinds of unnecessary risks.There are several guides to trading Bitcoin that will ensure that you profit in trading Bitcoin, these guides include:

Open an Account

If you intend to trade CDFs or spread bets, you need a trading account first, this is very easy and fast to set up. However, you do not need a Bitcoin exchange account if you only want to buy and sell Bitcoin.

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Research

Before trading, you need to ensure that you are informed about the latest Bitcoin news in order to fully grasp the cryptocurrency price system. Through this, you will also be able to understand the factors that affect the growth of your Bitcoin. The recent trend in cryptocurrency is uncertain because of its adolescent stage; therefore, Bitcoin chart and behavior are also helpful information that can help you thrive in trading Bitcoin.

Motivation

There are several trading platforms you can use your Bitcoin for; however, it is best to have a motivation or reason before entering into any trade. Start the trade only when you have a clear objective of involving in the trade and have a cutout strategy for trading.
There are several trading strategies you can employ in Bitcoin trading, these strategies have different results. So, you need to select a strategy that is favorable.Not all trading is truly profitable for traders because where some benefits, others may lose. There are traps everywhere waiting for you tomake a mistake so that you can lose your Bitcoin. Even if you want to trade daily, it is better to be patient instead of risking losing your coin.

Start Trading

After you are certain about your position and strategy, you can then place your trade. This can be done on several online trading platforms; however, you have to ensure that these platforms are credible to avoid wasting your time and Bitcoin.

Open a platform and enter the amount of Bitcoin you want to invest in a trade. You can also close your position when you notice that the market is moving against you by a particular amount. You can buy the market if you are convinced that the Bitcoin involved will rise in value and if you think it is unstable and can fall, you can also sell.

Closing

When trading Bitcoin, it is best to be careful, know when to stop trading and count your losses in order not to face huge risks. After hitting your profit target or when you are no longer interested, you should close your position. To do this, you need only to place the reverse of your real trade.

Significantly, Bitcoin is very interesting, flexible, and a profitable trade, all it requires is intelligent calculation and strategies for you to thrive in the market.


2017 is going to be remembered as the year of Bitcoin – What’s in store?

It was in 2016’s January that a user posted whether or not it made sense to still purchase Bitcoin in Quora. Then, the price of Bitcoin was as low as $400 or somewhere below that. The probable answer to this query, then, was ‘Yes’ as Bitcoin is always seen as a promising investment especially for the startups at their early stage. All investors knew that the big multiples are where the early stage is and they thought that Bitcoin would disappear or lose value with time. Nevertheless, investors thought that it would make a fantastic investment and it could even reach the fiscal mainstream.

2017 marks the year of Bitcoin

As we move into 2017, Bitcoin has surged in value and it has outshone all other asset classes, witnessing a high of around 400% since January. There were several Bitcoin millionaires who initiated a wave of ICOs or Initial Coin Offerings and contributed more than $2 billion in the form of funding to several new crypto currency projects. Bitcoin accounts for more than half of the value of all ‘crypto assets’ and this market presently sees around $5 billion in the form of trading volume per day across tokens and currencies.

Bitcoin is not any longer a startup

Those who follow only the price movements of Bitcoin scene may have missed the biggest development seen in 2017, that Bitcoin is not any longer a startup. Rather it is high time that Bitcoin declares its IPO moment. The change in perception is the first-ever mark of the IPO moment. During 2017, Bitcoin is being considered more seriously by regulations, by the media, by the public and also by the main financial system. In spite of facing challenges in different fronts, there is still a strong sense of belief that cryptocurrencies are here for a long time and Bitcoin is the king of the entire scenery.

Bitcoin is a real asset

At the international level, the Bitcoin community basked in the glory of a huge boost in confidence. With more wealth and brainpower to re-invest, it keep innovating and thriving as never before. Bitcoin has aged in a graceful manner and they have even brought together communities and motivated so many breakthroughs in various directions. If you’re someone who is close enough to crypto community and to the world of finance, you must be aware that a huge shower of institutional money will enter the class of asset now. Here’s a long list of initiatives which meet institutional demand:

  • Institutional offerings from cryptocurrency exchanges
  • More than dozen of hedge funds
  • Public funds
  • Private index funds
  • Derivative exchanges
  • Proposals for ETFs

As the hungry institutions gradually get easier access to Bitcoin, the benefits will become more prominent. In the form of an asset, Bitcoin performs like noone else. Just as the other start-ups which became public in 2016, this too is a rather new invention. Despite being a relative novice, all statistics point to the fact that we’re entering the era of Bitcoin and this is going to create history.


How to Invest in Bitcoin

Everyone by now must have heard about the term Bitcoin, as it features almost daily in the newspaper; from soaring Bitcoin prices to hackers demanding payment through Bitcoins (more recently Wannacry attack), and RBI being reluctant to enter into its regulation.

Founded by Satoshi Nakamoto, Bitcoin, a cryptocurrency has an obscure beginning during the financial crisis of 2008-2009, with populist agenda of taking the control out of governments and bankers that usually control the flow of currency. From its humble beginning, it has been growing into maturity rather quickly, with people looking at it with awe and jumping eagerly to invest into it. Within just a decade of its existence, it has become a popular way of the transaction because of the following reason:

• Freedom of payment
• No counterfeiting
• Full users control and high level of security
• Transparent information
• Low fees
• Less risks for merchants

The investment into bitcoin is going up day by day, and here are the two ways of investing into it:

• Mining
• Buying

Mining of Bitcoins is done using specialized program that works to decrypt the algorithm, thus uncovering the code for each coin. But here is the catch. Earlier when Bitcoins was new, it was mined quickly and easily by home programmers. But since the Bitcoins is limited (21 million units only, out of which 14 million are already mined and are in circulation), the complexity required to mine grows with each mined coin. At present, there are dedicated miner with specialized hardware and software who mine it rapidly. Also, the computer power required to mine is too high and it would take longer than an individual lifetime to mine a Bitcoin, that’s why the only other alternative left is to buy it.

It is high time to buy a Bitcoin because in long-term its price is going to soar with short-term decline given that there is limited amount of it available. Case in point: In October 2016 a single Bitcoin traded around Rs 45,000 and in October 2017 it is trading at around Rs 3,85,000. A person who invested last year has clearly made a profit of about Rs 3,40,000.

Any can buy the Bitcoin with any of the Bitcoin Exchangers like Unocoin, Zebpay, BTX India, BuySellBitcoin and among many others. Since the Bitcoin is not yet regulated, so all these exchanges employ self-regulation to maintain the transparency and security associated with the exchanges. Moreover, several exchanges came on the common platform to form a common regulatory outside of government named Digital Assets and Blockchain Foundation India (DAFBI).

It may be a little challenging for the newcomer to trade in Bitcoin, so it is advisable before trading one should make oneself acquainted with the nitty-gritty of it. For starter, Local Bitcoins may help you in finding people nearby who can transact with you in Bitcoin, but it is advisable to be cautious as scammers do also frequent this site looking for a chance of deceiving. New timers can also look at the website like Crypto Watch and Bitcoin Wisdom in making themselves aware about the second by second exchange rates of Bitcoin.

 


See, I told You Bitcoin Was Volatile

Over the past year, I’ve written extensively about Bitcoin, essentially saying that I didn’t believe it was a safe investment at all. Most recently, it seemed that some people were becoming more comfortable with Bitcoin. A Canadian entity agreed to pay some of their workers with BitcoinOverstock.com allows it as a currency. Some states in the U.S. started to draft legislation about Bitcoin. It all seemed like things were headed in the right direction…until they weren’t.

Over the last few days, there has been an extensive amount of bad press about Bitcoin. Most notably, the Washington Post called the entire operation a Ponzi scheme. Those are some harsh words, but they definitely are rooted in some truth. After all, no one has been able to figure out how Bitocin works exactly and what makes the price fluctuate so much. No one knows why millions of Bitcoin have gone “missing” in cyberspace or who created the concept to begin with. There is no regulation, no bank to back it up, and several accounts that it’s a favorite currency of drug dealers.

spending-bitcoinsSure, some people made a lot of money in a short amount of time if they timed it just right, but for the vast majority, Bitcoin is not a get rich quick scheme. It remains a highly volatile, abstract digital currency that seems to do whatever it wants in terms of value. Plus, in the last few days, the price of Bitcoin has plummeted.

A recent article by U.S. News and World Report quoted several finance experts who strongly cautioned against Bitcoin as well. They argued that Bitcoin has no real, intrinsic value. Several financial planners indicated that they would never recommend it to their clients.

I personally would only recommend Bitcoin to someone who was just interested in utilizing it for entertainment purposes, just as they would go to a casino with a set budget of a $100 bill. Some people and technology enthusiasts simply get a thrill of tracking Bitcoin and seeing what the market will do. If this is you, just be extremely careful about your level of investment. Bitcoin should never be considered a real, genuine retirement plan, for example.

Despite all the recent bad press, there has been an interesting twist to the story though. In the last day or so, several Wall Street financial experts invested in Coinbase, a U.S. based Bitcoin companyto the tune of $75 million in funding. These financial experts are even what Coinbase CEO Brain Armstrong calls “Bitcoin believers”. Armstrong and these investors do not seem concerned with the recent price drops. Instead, they believe Bitcoin has some staying power. Their goal is to grow Bitcoin, help more mainstream companies adopt it as a currency, and spread it to more than 30 different countries.

It’s a tall order, but an interesting one. Once again, I will be watching from the sidelines as an interested party, not as a personal investor.

Do you believe in the legitimacy of Bitcoin as an investment?


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