Current Bitcoin Exchange Rates https://coinaccess.com/blog Coin Access Thu, 23 May 2019 15:22:44 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.12 Robinhood Customers in New York Can Now Trade Bitcoin https://coinaccess.com/blog/robinhood-customers-in-new-york-can-now-trade-bitcoin/ https://coinaccess.com/blog/robinhood-customers-in-new-york-can-now-trade-bitcoin/#respond Thu, 23 May 2019 15:19:57 +0000 https://coinaccess.com/blog/?p=346 Bitcoin and Ethereum trading is now open to New Yorkers on the Robinhood platform.

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If you were like me and you got excited about the prospect of trading cryptocurrencies without paying commissions, you would have signed up for early access when Robinhood announced they’d be offering it soon. If you did sign up in time then today you would have received an email with the subject “Your invite for Robinhood Crypto is here!”.

 

Bitcoin and Ethereum trading is now open to New Yorkers on the Robinhood platform. It seems like this is a pilot launch for early joiners, but I expect it to be open to all New Yorkers soon, if it’s not already.

 

 


 

 

Even more newsworthy in my opinion…

 

As part of their announcement to offer commission free cryptocurrency trading, Robinhood also mentioned their new Feed, simply named “Robinhood Feed”.

 

A quote from their blog…

 

“With today’s trading launch, we’re also announcing Robinhood Feed – a brand new way to discuss cryptocurrencies, news, and market swings, in real-time with other investors on Robinhood. Feed is available to a limited number of people on the platform and will evolve based on your, well, feedback.”

 

Robinhood is a great platform for investing, especially if you want to limit your fees. However, it’s been pointed out time after time that Robinhood lacks good research tools and a few other fundamentals. This new Feed option is certainly a start to offering better options for research and discovery of new trends in the market.

 

This sounds like another pilot program, but I for one am keeping my ear to the ground about this one. I’ve always been of the opinion that the market research tools offered by other platforms are highly overrated. I like to pretend I know a thing or two about investing, but I don’t, not really. At least not compared to the investors I admire most. Investors like Ray Dalio, Warren Buffett, and Benjamin Graham. All the research tools in the world only really serve to mask my own inexperience, and I imagine this is true for most of us. So for a casual investor like myself, Robinhood is great.

 

That’s not to say research isn’t extremely important. With the new Robinhod Feed I’ll be able to follow real-time market trends as they happen. When it comes to cryptocurrencies, this is important because they are so volatile now. It’s really not to difficult to make some extra spending cash trading cryptocurrencies these days… IF you follow the trends. I’ve even built tools for myself to help visualize trends and find good buy/sell points that I’ll be rolling out in the Coin Access app soon. I’m hoping to leverage the Robinhood Feed for this purpose too, when it’s fully rolled out.

 

 

References:

 

Robinhood Crypto Trading Is Here, Robinhood Blog, 22th of May 2019,
Website Link

 

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Will Bitcoin Ever Reach $1,000,000? https://coinaccess.com/blog/will-bitcoin-ever-reach-1000000/ https://coinaccess.com/blog/will-bitcoin-ever-reach-1000000/#respond Fri, 10 May 2019 20:27:25 +0000 https://coinaccess.com/blog/?p=323 TradingView.com predicts the price of a single Bitcoin will reach $1,000,000 by the year 2028.

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I recently read an article on TradingView.com that predicts the price of a single Bitcoin will reach $1,000,000 by the year 2028, at the latest.

 

The article offers a few reasons why, but I’d like to focus on just 1 point that was made in the article.

 

Looking at the red line in the chart above the author asks…

“How high is the probability that Bitcoin will follow a course along the red dotted lines?”

 

The author goes on to say…

“The entire crypto market must collapse. For this case the market is already too large. I am writing this because many people compare the crypto market with the tulip market hundreds of years ago. The cryptomarket is no longer a closed system. It is a global phenomenon with market power.”

 

The author’s assumption is very true. Bitcoin is no longer a closed system. It truly is a global phenomenon with real market power. We can no longer compare Bitcoin to the Tulip Mania. The Tulip Mania was an isolated event that occurred in one region of the world, and when the crash happened the price of tulips never rose to extremes again. The events of the Bitcoin bubble may have started out following a similar pattern as the Tulip bubble, but it hardly ended in the same way. Here are 3 very distinct differences.

 

  1. The price of Bitcoin came crashing down after the initial craze hit the mainstream, but all hope was not lost. The prices of Bitcoin are rising again and major investment firms are now starting to get involved long after the crash.
  2. Bitcoin offers a utility that has major banking institutions reconsidering the way money is transferred. Cryptocurrencies are not pretty flowers that will eventually wither and die. They are part of a breakthrough technology that will likely become a new norm soon enough.
  3. Bitcoin is part of the global market now. It’s not isolated to a single region. There are systems in place, and being improved every day, that are making it easier and faster to make transactions with Bitcoin and other altcoins at a global scale.

 

To top it all off, large investments are still being made to mine for new Bitcoins, with mining prices ranging anywhere between $531 to $26,170 around the world. So while the mainstream craze that caused the price of Bitcoin to skyrocket and crash may be over, the sentiment towards Bitcoin as a real investment option still exists.

 

 

But with all this in mind can we really justify a valuation of $1,000,000 by the year 2028 for a single Bitcoin?

 

What’s your take?

 

Will Bitcoin price ever reach $1,000,000 USD?

 

 

 

References:

 

Why will 1 Bitcoin really be worth more than USD 1 million?, TradingView, 15th of April 2019,
Website Link

 

Dutch Tulip Bulb Market Bubble Definition, 26th of April 2019,
Website Link

 

Here’s how much it costs to mine a single bitcoin in your country, Market Watch, 11th of May 2018,
Website Link

 

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Fidelity To Allow Institutional Trading of Bitcoin https://coinaccess.com/blog/fidelity-to-allow-institutional-trading-of-bitcoin/ https://coinaccess.com/blog/fidelity-to-allow-institutional-trading-of-bitcoin/#respond Mon, 06 May 2019 16:31:58 +0000 https://coinaccess.com/blog/?p=304 According to Bloomberg, Fidelity will allow institutional customers to buy and sell Bitcoin within just a few weeks.

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According to Bloomberg, Fidelity will allow institutional customers to buy and sell Bitcoin within just a few weeks.

 

Bitcoin has been on a steady rise these past few weeks. Over the past year, we started to see news of major investment firms like E-Trade and Robinhood planning to offer cryptocurrency trading to retail investors. Now Fidelity wants to offer institutional investors a chance to enter the game.

 

According to a spokesperson at Fidelity, a study released by Fidelity on May 2 found that 47 percent of institutional investors think digital assets are worth investing in. Not too shabby if you ask me. What’s more, Fidelity will focus its offerings on Bitcoin alone, at least for the time being it seems.

 

We have yet to see what this will do to the volatility of Bitcoin and other altcoins, but in the long run, I think it will cause the price of Bitcoin to continue rising. So far this has been the case. Whenever large investment firms show interest in Bitcoin it further solidifies its place in the market. Bitcoin is no longer just an idea or a craze, it’s a force to be reckoned with.

 

 

Check out our new technical analysis charts to follow Bitcoin price swings as they happen…

https://coinaccess.com/gauge/

 

 

 

References:

 

Fidelity Will Offer Cryptocurrency Trading Within a Few Weeks, Bloomberg, 6th of May 2019,
Website Link

 

E*Trade Is Close to Launching Cryptocurrency Trading, Bloomberg, 26th of April 2019,
Website Link

 

Don’t Sleep – Introducing Bitcoin & other cryptocurrencies on Robinhood Crypto, Robinhood, 25th of January 2018,
Website Link

 

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Square gets NY State cryptocurrency license for it’s Cash App https://coinaccess.com/blog/square-obtains-ny-state-cryptocurrency-license-for-its-cash-app/ https://coinaccess.com/blog/square-obtains-ny-state-cryptocurrency-license-for-its-cash-app/#respond Tue, 03 Jul 2018 05:17:13 +0000 https://coinaccess.com/blog/?p=288 This is another step forward for Bitcoin and cryptocurrencies alike.

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Photo by Marjan Grabowski on Unsplash

 

Square’s Cash App is a hugely popular app for sending and receiving money, and now New York residents can use the app to buy and sell Bitcoin. According to Square’s website Bitcoin can be traded with no conversion fees, which is nice. Although their exchange rate calculations are not entirely clear. According to Square, the exchange rates are

 

“…calculated using the current market rate across the most popular U.S. exchanges, plus a spread determined by the size of your transaction and market volatility. The exchange rate may differ between transactions, and may also differ from exchange rates available to you from other buyers and sellers of Bitcoin.”

 

To me, this sounds like they will take an average (possibly weighted) price from “popular exchanges” along with a spread based on current buy/sell rates, and use that to come up with a somewhat fair, but also somewhat manipulated price. The average cost calculated with a spread may allow for some sort of arbitrage on the back-end, which is where Square can profit from each transaction. Still, this is another step forward for Bitcoin and cryptocurrencies alike. With companies like Square taking big steps like this to help legitimize and promote cryptocurrencies, it seems the cryptocurrency age is just getting started.

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Bitcoin vs Ripple (XRP) https://coinaccess.com/blog/bitcoin-vs-ripple-xrp/ https://coinaccess.com/blog/bitcoin-vs-ripple-xrp/#respond Fri, 16 Feb 2018 18:44:49 +0000 https://coinaccess.com/blog/?p=275 Ripple is a company, not a cryptocurrency.

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I once wrote how I thought Ripple’s XRP is the only other cryptocurrency worth investing in besides Bitcoin (this was before Ethereum hit the scenes).

 

At the time I didn’t fully understand Ripple’s intent for its own blockchain technology. Now I have some different opinions about XRP, but do I still believe it has value and a lot of potential (maybe even more so than Bitcoin) as it relates to the future of digital transactions.

 

 

What is Bitcoin really?

 

Satoshi Nakamoto’s whitepaper is what you’ll want to read in order to fully understand the original intent behind Bitcoin, but I’ll sum it up by saying… Bitcoin was originally meant to be a peer-to-peer system for handling digital financial transactions. It was meant to take intermediaries like banks out of the picture while also seeking to solve the problem of double spending.

 

What Bitcoin has become

 

Bitcoin today is less of a means of payment as much as a perceived store of value. As long as the price of Bitcoin can fluctuate double digit percentages every day it can’t really be a viable means of handling ordinary transactions. Why would someone ever want to use Bitcoin to buy something if the price of their Bitcoin may go up 20% in the next hour? And why would someone want to accept Bitcoin in exchange for something if the price of the Bitcoin they accept may go down 20% in the next hour? People are not acquiring Bitcoin today because they believe in the ideology it was meant for. They are acquiring it because they believe it will go up in value faster than other types of investments. Bitcoin has become a version of digital gold more than a version of digital cash like it was originally intended.

 

 

What is Ripple?

 

Ripple is a company, not a cryptocurrency. Ripple has created their own version of a cryptocurrency called XRP. This cryptocurrency is unique to the Ripple system, which is really intended to favor the banking system by creating a cheaper and faster alternative to the current SWIFT system. Ripple is trying to solve a very different problem than other cryptocurrencies, and it is not decentralized.

 

The value of XRP is directly tied to the value other financial institutions place on the Ripple system. It may one day evolve into a better form of handling ordinary transactions if banks and credit card companies adopt XRP as a better way to validate transactions, especially since it will help solve the double spending problem. What this ultimately does for the value of XRP is yet to be determined. Personally, I don’t see this type of adoption causing the price of XRP to skyrocket like Bitcoin, but I do see it allowing XRP to become a new standard for payments, which should cause it’s value to go up at a relatively steady pace over time.

 

 

So there you have it… XRP and Bitcoin are meant for two very different purposes, and Bitcoin has evolved to be something very different than what it was originally intended for. XRP and Bitcoin should not be compared as similar types of assets. Bitcoin will likely be the better store of value for faster growth in the foreseeable future, assuming it doesn’t come crashing down. XRP has a better chance of becoming the standard cryptocurrency for handling ordinary payments since it favors existing financial institutions and improves the way they can handle transactions. This will allow XRP to be a safer store of value long term once Ripple solidifies it’s position as a better alternative to the status quo.

 

 

Here’s another great article on the differences between Bitcoin and Ripple’s XRP.

 

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Time to Sell? https://coinaccess.com/blog/time-to-sell/ https://coinaccess.com/blog/time-to-sell/#respond Mon, 05 Feb 2018 20:28:37 +0000 https://coinaccess.com/blog/?p=230 Don't let cognitive bias get the best of you!

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I did it… I pulled the trigger and sold my entire position in Bitcoin, Bitcoin Cash, and Ethereum.

 

I was holding off for a while as I watched the price of cryptocurrencies fluctuate a few hundred every day. But I just couldn’t ignore the steady decline over time, so I decided to gamble on the fact that ongoing government regulations and consistent shorting on futures funds is prompting a big sell-off.

 

What’s even worse, the days of using credit as leverage to buy into cryptocurrencies are dying, resulting in a smaller pool of buyers, which can drive prices down even further.

 


 

There is a lot of news circulating that has a lot of bias, and it’s bias on both sides of the spectrum. What I’ve always tried to do when writing my own personal opinions on this topic is to offer a more balanced view. Granted, I am very bias towards favoring Bitcoin and other cryptocurrencies, but I do make a concerned effort to put my personal bias aside for a more balanced look at things. This will not only benefit anyone who reads this, but myself as well, since it forces me to ignore the noise and formulate my own opinions that will ultimately dictate my own actions. And my own opinions say it’s time to sell, especially if you got in early and saw a significant gain over time.

 

I thought about selling when the price was making a push towards $20,000, but I let my cognitive bias get the best of me then. I decided to not let that happen again, since the idea of losing more would border on stupidity in my opinion. If I can walk away with a decent profit, why not? I may have missed an opportunity to sell higher, but I can still sell high, and that’s a good thing.

 

There are many forms of cognitive bias, but the one at play with Bitcoin I think is the idea that we tend to seek out or favor the information that supports what we want to believe, or confirmation bias. In this case I want to believe that the price of Bitcoin will keep going up even as it’s falling, so I’ll trick myself into believing that this is actually the case.

 

I’ll convince myself that tweets from “experts” on the topic telling me to “hodl” (hold) is the right thing to do, even though other experts, like Warren Buffet and Ray Dalio, who I should probably trust more, say that Bitcoin is in a big bubble.

 

I’ll convince myself that news I read from sources like bitcoin.com, or other popular crypto-news sites, have a valid point and aren’t just putting a creative spin on the negative news from other sources.

 

I’ll convince myself that governments starting to crack down on cryptocurrencies won’t really have a significant impact because of a funny meme I saw online like this one…

 

 

(It turns out that some countries can make a significant impact)

 

 

It’s time to get real. Bitcoin is dropping fast and for a number of reasons. All the wishing and positive spins in the world won’t change what’s actually happening. Don’t get me wrong. I’m still a big believer in the technology and ideology, and I’m still long on Bitcoin. But while it’s dropping I’ll take a profit while I can. I’m sure I’ll buy again when prices bottom out, but for now I’ll cash out and cover my gains.

 

My advise to anyone who can sell at a gain is to sell now. Unfortunately, this isn’t the case for everyone. For anyone who can’t sell at a gain I only see 2 options.

 

1) Hold if you can afford to and hope for the best. I do think there will always be value tied to Bitcoin in some way, even if it never climbs back to where it was. Remember that Bitcoin and blockchain technology is still relatively new and evolving, and so it still has a lot of potential. Holding if can afford to is probably not a terrible strategy.

 

2) Cash out and accept your loses. Despite what we may read, cryptocurrencies are a gamble right now. When we place bets we have to be willing to lose sometimes, otherwise we shouldn’t be placing bets. The good news is that most people (governments included) agree that blockchain technology is here to stay and cryptocurrencies, in one way or another, are likely to have a place in the future of trade. So even if you decide to sell at a loss now, there is a good chance you can buy back in later when things level off, and hopefully make a profit then.

 

 

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Bitcoin is Coming to Robinhood!!! https://coinaccess.com/blog/bitcoin-coming-robinhood/ https://coinaccess.com/blog/bitcoin-coming-robinhood/#respond Fri, 26 Jan 2018 17:14:29 +0000 https://coinaccess.com/blog/?p=221 If you haven't already heard, you might want to pay attention to this...

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Robinhood

 

If you haven’t already heard, you might want to pay attention to this…

 

Robinhood recently announced that they will be offering the option to trade Bitcoin and Ethereum in February, with other cryptocurrencies coming soon!

 

Robinhood is a stock trading app that, in many ways, has really disrupted the brokerage trading market with it’s free options trading platform. With Robinhood you can buy and sell stocks on a regular basis without incurring any brokerage fees. Now, Robinhood has set out to disrupt another market, the crypto-market, by offering the option to trade cryptocurrencies without any transaction fees.

 

This is big news and here’s why…

 

A volatile market is arguably one of the best markets for making quick returns on your investment. Using technical analysis, it is possible to find trends that will show you the best buy and sell points for a given asset. I can’t think of a more volatile market with higher price swings than the cryptocurrency market. But when it comes to day trading cryptocurrencies, the problem for me has been the exorbitant fees tied to transactions using a trusted exchanges like Coinbase.

 

There is a great opportunity to make decent money day trading cryptocurrencies, even for average or passive investors. But I’ve done the math and, for me, the risk is too high when you account for the transaction fees.  Of course it is still possible to make money on a day to day basis when price swings are a few hundred at any given moment. However, the fees alone can also add up to a few hundred when you’re dealing with a worthwhile trade that can earn you a decent return, at least on Coinbase. I haven’t tried using other exchanges mostly because I place more trust the security of Coinbase.

 

And now enters Robinhood with their free trading options, which they want to introduce to the cryptocurrencies world.  This will allow us passive investors to play around with cryptocurrency day trading without having to worry about those nasty fees that always eat away at any potential gains. Robinhood is effectively reducing the risk of cryptocurrency trading in a big way for anyone who is paying attention to the market lately. And best of all, Robinhood is very secure and FDIC insured, although I’m not sure if cryptocurrencies fall under their FDIC protection.  I’ll also point out that one of the venture capital investors in Robinhood happens to be Marc Andreessen, who is also invested in Coinbase.

 

Unfortunately, Robinhood will only be introducing cryptocurrency trading to 5 states for now, California, Massachusetts, Missouri, Montana, and New Hampshire. I assume this is due to state-by-state regulations, but they do promise that “Robinhood Crypto”, as they call it, will be available in more states soon. When it comes to New York, I hope to be among the first to jump in!

 

 

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Bitcoin’s rise and fall and rise and… https://coinaccess.com/blog/bitcoins-rise-fall-rise/ https://coinaccess.com/blog/bitcoins-rise-fall-rise/#respond Fri, 19 Jan 2018 03:38:49 +0000 https://coinaccess.com/blog/?p=195 I recently read this hilarious article on how to write Bitcoin blog posts using a template that will work regardless of Bitcoin's current price, so I decided to give it a try...

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I recently read this hilarious article on how to write blog posts about Bitcoin using a template that will work regardless of Bitcoin’s current price, so I decided to give it a try…

 

 

 

 

Today, the price of Bitcoin has bounced back from yet another drop. Most experts attribute the drop to news circulating around about South Korea (and other countries) looking to ban all cryptocurrency exchanges, while some skeptics are singing the classic “I told you so” tune.

 

Tom Lee, one of Bitcoin’s bullish forecasters, seems to think we’ve seen a major low of $9,000, and is predicting $25,000 by the end of this year, which would actually make now a perfect time to buy more cryptocurrency.

 

Also dropping and rebounding in the crypto market these past few days is virtually every other cryptocurrency, including Ethereum, Ripple’s RPX, and Litecoin, which also saw all-time highs this past year.

 

The driving factor behind the frantic fluctuations does seem to be talks of South Korea wanting to ban all cryptocurrency exchanges.

 

 

When News Breaks Regarding a Ban on Bitcoin

 

 

We should expect to see price fluctuations to intensify when news breaks about counties looking to regulate Bitcoin, or if we hear about someone like Mark Cuban, who once spoke against it, now looking to accept it, or even when a company like Kodak is mentioned for its seemingly forward thinking executives, who now want it on the action.

 

Only time will tell what this means for Kodak and other random companies who had nothing to do with the cryptocurrency revolution whatsoever, but decide to put out press releases mentioning “blockchain technology”. As for the rest of us, I guess we’re all just stuck in the middle of this crazy rollercoaster of a ride. But I for one always liked rollercoasters!

 

 

 

 

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Is Bitcoin Too Expensive? https://coinaccess.com/blog/is-bitcoin-too-expensive/ https://coinaccess.com/blog/is-bitcoin-too-expensive/#respond Tue, 16 Jan 2018 21:07:53 +0000 https://coinaccess.com/blog/?p=167 I was recently talking with a friend of mine and the topic of Bitcoin came up. I asked him if he'd buy any right now and he said no, it's priced too high and I can't afford it. ...So is Bitcoin too expensive?

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I was recently talking with a friend of mine and the topic of Bitcoin came up. I asked him if he’d buy any right now and he said no, it’s priced too high and I can’t afford it, to which I replied, well you can always buy fractions of a Bitcoin. Then I went on to say that I believe Bitcoin is still the best crypto currency to own right now. We are seeing massive volatility lately, but I think that should be expected for a new type of technology based asset class that promises to reshape the future of payment systems as we know it. We’ve seen crazier swings in the past, but Bitcoin, for one reason or another, has always bounced back with a vengeance. So is Bitcoin too expensive?

 

Based on recent news regarding China and South Korea considering a ban on crypto currency exchanges, we’ve started to see another downward price swing for Bitcoin and other crypto currencies. But what’s interesting is that, as of this writing, Bitcoin is still selling above market averages on South Korea’s largest exchange, Korbit. At the time of this writing, Korbit has Bitcoin listed for 14,748,000 Won, or $13,863.12 USD, far above the average of $11,678.61 USD from other top exchanges. And in other news, it seems Japan’s largest bank has plans to start it’s own crypto currency exchange this year. See https://news.bitcoin.com/japans-largest-bank-to-launch-cryptocurrency-exchange/.

 

Despite mainstream news, it seems Asia is not giving up on Bitcoin, not by a long shot. What I like about mainstream media is how it keeps creating buying opportunities for Bitcoin whenever we read about signs of crypto-armageddon. With the high price of Bitcoin reaching near $20,000 USD right around this time last month, and now reaching it’s lowest point since, I see a perfect buying opportunity, especially with some major financial institutions like Mitsubishi UFJ Financial Group, Inc and NASDAQ starting to get involved. Bubble or not, I think we’re only starting to see the beginning stages of growth for Bitcoin and other popular crypto currencies.

 

So again, is Bitcoin too expensive? I think the answer is… not even close! When my friend told me he wouldn’t buy an asset that trades at such a premium I asked him if he would have wanted to own a share of Berkshire Hathaway Inc. when it was trading around the same price in 1993 as Bitcoin is today, or if he would have bought into Amazon.com when it was trading at a premium of just over $800.00 this time last year. Berkshire Hathaway Inc.’s class A stock (BRK.A) currently trades at over $315,000.00 a share, and Amazon.com (AMZN) is currently at over $1,300.00 a share.  He had no good answer other than, Bitcoin is just too speculative. While I do agree with that, I also think the speculation is, in many ways, overhyped by mainstream media. I laugh when I hear Bitcoin (a transformative technology with a set limit that has the potential to redefine how we buy and sell) being compared to a flower like tulips.

 

We may be in a bubble, but we were also in a bubble when the Internet first hit the scene, and when housing prices went through the roof. Since then, housing prices have rebounded, and those early surviving tech stocks that actually offered promise are ones I wish I had owned at the time of the .com bubble. So for me, it’s not so much a question of price as much as figuring out which crypto currencies will survive the mayhem. So far, Bitcoin remains at the top, and as long as I keep hearing most people only mention Bitcoin when the topic of crypto currencies comes up, I know it’s still far off from being a losing bet.

 

 

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How to Buy Ripple (XRP) With Coinbase https://coinaccess.com/blog/how-to-buy-ripple-xrp-through-coinbase/ https://coinaccess.com/blog/how-to-buy-ripple-xrp-through-coinbase/#respond Sat, 30 Dec 2017 07:44:43 +0000 https://coinaccess.com/blog/?p=159 Ripple (XRP) has been on a hot streak recently and it is now claimed the number 2 spot for total cryptocurrency market capitalization, right under Bitcoin... Here are the steps necessary to acquire XRP using Coinbase...

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Ripple (XRP) has been on a hot streak recently and it is now claimed the number 2 spot for total cryptocurrency market capitalization, right under Bitcoin.

 

With all the hype and high growth surrounding XRP I’ve been trying to get in on the action but it hasn’t been smooth due to all of the identity verification requirements for the top exchanges that offer XRP. While identity verification is obviously a legitimate requirement, I’ve been waiting for both Kraken and Bitstamp to process my verification documents for over 2 weeks. I understand that there’s some lag time to be expected, but 2 weeks seems very long.

 

With the recent rumors about Coinbase potentially offering XRP in 2018, and with the news about a few big Japanese credit card companies signing up with Ripple, I decided I can’t wait around while XRP continues to rise. If Coinbase does decide to offer XRP, it’s price will likely jump, but by that time it’ll probably be priced high and the opportunity to get in early will be gone. So I started looking for other ways to get my hands on XRP without putting my investment at risk through shady or less secure alternatives to a reputable exchange, and I finally figured it out.

 

It is possible to transfer various cryptocurrencies between wallets using an app/service called Evercoin. This app basically acts as an instant escrow service for transferring altcoins and they support XRP as long as you have a wallet to transfer to, and setting up a free and secure XRP wallet is easy using an app called Toast Wallet.

 

Here are the steps necessary to acquire XRP using Coinbase, Evercoin, and Toast Wallet…

 

1) If you don’t already have an account with Coinbase, create one. Make sure you fund the account or have a balance of either Bitcoin, Ethereum, or Litecoin. Note: you can use any other exchange or Bitcoin wallet, it doesn’t have to be Coinbase, but Coinbase is what I would recommend for simplicity and efficiency.

 

2) Download the Toast Wallet app and set up a free XRP wallet. Note: all XRP wallets require a minimum of 20 XRP to become active, so you will see your Toast Wallet show your new XRP wallet as inactive until it’s funded with at least 20 XRP. This is a Ripple platform requirement.

 

3) Download the Evercoin app and follow the steps to transfer either Bitcoin, Ethereum, or Litecoin to your XRP wallet. Note: due to the recent high valume of XRP trading you may have to wait for Evercoin to have enough XRP in reserve. I had to wait about an hour before I saw XRP appear as an option on Evercoin.

 

4) Sit back and watch your new XRP grow, and if/when it does become available on Coinbase, I’m sure you’ll be able to transfer your XRP to Coinbase at that time.

 

Heres a good step-by-step tutorial provided by Evercoin… https://blog.evercoin.com/how-coinbase-users-can-buy-ripple-xrp-on-your-phone-b217766d2973

 

 

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It’s Not Too Late to Give Some Bitcoin for the Holidays https://coinaccess.com/blog/its-not-too-late-to-give-some-bitcoin-for-the-holidays/ https://coinaccess.com/blog/its-not-too-late-to-give-some-bitcoin-for-the-holidays/#respond Sun, 24 Dec 2017 00:37:25 +0000 https://coinaccess.com/blog/?p=138 With Christmas just a few days away, I've been thinking hard about what I can get for some close family and friends who are left on my shopping list for this season, and then it hit me! I can give the wonderful gift of Bitcoin.

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If you’re like me, you tend to wait until the very last minute to complete your holiday shopping. With Christmas just a few days away, I’ve been thinking hard about what I can get for some close family and friends who are left on my shopping list for this season, and then it hit me! I can give the wonderful gift of Bitcoin.

 

With so many still speculating that Bitcoin will double or triple in the coming months / years, what better gift to give than the gift that keeps on giving?  Even with the recent correction in the price of Bitcoin and other altcoins, I still see a bright future for crypto currencies. We’ve seen many corrections over the years as it relates to Bitcoin, especially in 2017. Here’s a look at the ups and downs, and mostly ups, throughout 2017…

 

 

I don’t see Bitcoin loosing steam any time soon, so I’ll be giving some as gifts for my closest friends and family this holiday season.

 

Here are just a few ways you can give Bitcoin as a gift…

 

 

A Paper Wallet

 

You can visit bitcoinpaperwallet.com to get a fancy print out of newly created public and private key containing a Bitcoin value. There will also be a QR code for easy transfer to digital wallet providers like coinbase.com or other similar exchanges.

 

Click here to learn how to transfer your paper wallet to a digital wallet.

Click here to learn how to transfer your paper wallet to Coinbase.

 

 

Coinbase

 

Coinbase.com is a great way to send Bitcoin values to any email address. If you already have a balance with coinbase.com you can use their app to send any percentage of your balance to an email address of your choice. I’ve used their app to gift Bitcoin before and it’s very simple and secure. Just be sure not to send the gift until the day you’d like the recipient to receive it, since Coinbase will instantly send the email notification. Note, if you don’t yet have a balance and you’re not set up for instant buys, you won’t be able to get Bitcoin in time for Christmas this year using coinbase.com.

 

 

One of the above options would be my personal preference, but you can also use bit4coin.net to send Bitcoin gift cards, or even send a secure hardware wallet similar to a USB drive by visiting trezor.io. Both of these options are great, but each will take some time to order, so don’t count on them for this holiday season.

 

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Coinbase Gives a Holiday Gift https://coinaccess.com/blog/coinbase-gives-a-holiday-gift/ https://coinaccess.com/blog/coinbase-gives-a-holiday-gift/#respond Thu, 21 Dec 2017 18:14:06 +0000 https://coinaccess.com/blog/?p=133 Coinbase recently announced it's support of Bitcoin Cash and we all got some!

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Coinbase recently announced it’s support of Bitcoin Cash. This has been a long time coming, and many of us who have accounts at Coinbase were hoping for this long-awaited update.

 

Coinbase originally took a stance to not support Bitcoin Cash, but to their credit they lived up to their principle that “customers should benefit to the greatest extent possible from forks or other networks events”.

 

With the Holiday Season upon us, this move couldn’t have come at a better time. As part of the change, anyone who had a Bitcoin balance on Coinbase before August 1st, 2017 received an equal amount of Bitcoin Cash in their new BCH wallet on December 19th, 2017.

 

Within a short period of time Bitcoin Cash jumped over $8,000 on Coinbase. Unfortunately, Coinbase blocked all buying and selling for some time as the new update set in. This was probably for the best, but I for one was upset at being prevented the opportunity to arbitrage Bitcoin Cash for the brief time it was more than double the selling price of every other exchange. Still, who can complain about this nice turn of events at a very celebratory time of year.

 

Thank you Coinbase!

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Why is Bitcoin worth 800% more? https://coinaccess.com/blog/why-is-bitcoin-worth-900-more/ https://coinaccess.com/blog/why-is-bitcoin-worth-900-more/#respond Tue, 19 Dec 2017 06:08:00 +0000 https://coinaccess.com/blog/?p=121 What is it about Bitcoin that makes it the most valuable crypto currency in the world with no equal?

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As of this writing Bitcoin (BTC) is worth $19,104.30, while the second most valuable crypto currency, Bitcoin Cash (BCH), is only worth $2,174.96, or nearly 8x lower than BTC.

 

So what is it about Bitcoin that makes it the most valuable crypto currency in the world with no equal?

 

I attribute it to what’s called the Network Effect. The Network Effect is an economic effect that occurs when a product or service reaches a certain critical mass of users which, in turn, encourages other users to join in. Facebook is a perfect example of a Network Effect in action. The more users that join Facebook, the more valuable Facebook becomes, and the more users want to join Facebook.

 

Bitcoin was the first crypto currency to gain mainstream attention just a few years ago when it hit just over $1,200. As a result, when we think about crypto currencies, we think about Bitcoin. Now, as the idea of crypto currencies begins to see a far greater increase in interest, we are seeing more people investing it the first one that comes to mind, making it that much more valuable. In essence, Bitcoin is worth more because more people want to own it, and as more people want to own it, even more people want to own it. It doesn’t really matter at this point why people want to own it, just that there are enough people who already own it.

 

The Network Effect is the main reason why I predicted Bitcoin would be the clear leader for years to come back in 2014. I wasn’t wrong, and I still believe Bitcoin will be the clear leader for the foreseeable future. Other crypto currencies like Ethereum and Litecoin are enjoying the benefits of being a less expensive, but still a popular alternative to an otherwise very high barrier of entry into crypto currency investing. Some altcoins like Ethereum and Litecoin do offer advantages over Bitcoin in some ways, but I don’t believe this is the main reason for their growth. In fact, I think we might find that many new investors are less concerned about the potential usefulness of any crypto currency as much as it’s future value potential. Hopefully that doesn’t ultimately negate each of their respective values in the long run.

 

The Network Effect, by the way, is also what makes Bitcoin’s blockchain so valuable, and I don’t mean it’s dollar value. A blockchain is really only as valuable as its user base. We often hear about blockchain being the thing that has true worth and potential, but the truth is, without a large enough network of users, a blockchain actually becomes less useful, and in turn, less valuable. Bitcoin’s blockchain will only continue to increase in value as Bitcoin increases in value. Likewise, as Bitcoin’s blockchain grows, Bitcoin will continue to increase in value. The two go hang and hand. Blockchain technology is certainly a breakthrough technology, but it isn’t as significant without a large enough user base behind it. Blockchain technology requires user acceptance to be valuable because without users it’s just another way of storing transactional data. A user base that adheres to the blockchains protocol for validating new blocks is what makes the data it stores meaningful. Think of it as a peer-to-peer network like Lime Wire or BitTorrent. Would you use either of those services if no one else was using them?

 

Blockchain is new a really cool, but before we start imagining how it will redefine every industry, let’s first understand what it’s capabilities and limitations are. As it relates to Bitcoin and other altcoins, it’s potential is clear. As it relates to private or closed networks, I have my doubts about it’s potential. And that’s why I believe Bitcoin will continue to be a leading technology and unseparated from the use of blockchain.

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Bitcoin Power Consumption Put Into Perspective https://coinaccess.com/blog/bitcoin-power-consumption-put-into-perspective/ https://coinaccess.com/blog/bitcoin-power-consumption-put-into-perspective/#respond Tue, 12 Dec 2017 21:15:33 +0000 https://coinaccess.com/blog/?p=71 The rise of Bitcoin's popularity and price has, of course, resulted in the rise of Bitcoin mining, which in turn has resulted in the rise of the necessary energy it takes to mine for these new digital assets.

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The rise of Bitcoin’s popularity and price has, of course, resulted in the rise of Bitcoin mining, which in turn has resulted in the rise of the necessary energy it takes to mine for these new digital assets.

 

There have been claims that the total energy consumption required for Bitcoin has risen above the total energy consumption of some countries. Newsweek.com even recently released an article titled “Bitcoin Mining on Track to Consume All of the World’s Energy by 2020“.

 

As with any form of sensationalism, when we hear fantastic claims like this, it is important to take a step back and use some critical analysis before we accept it as truth. So before Bitcoin is pegged as the death of our environment as we know it, let’s take a look at some of the other ways we consume energy and compare that to Bitcoin’s total energy consumption estimates.

 

 

Mining Energy Consumption for Gold and Other Metals

 

According to a report on energy.gov, the total energy consumption used each year to mine for gold, silver, iron, copper, and other metals is around 552.1 Trillion Btu’s. Which is roughly 44% of the total US mining industry, which is currently estimated at 1246.3 TBtu. So this doesn’t account for other areas of the world where metal mining occurs.

The energy consumption needed to mine for coal comes in at a close second, reaching around 485.3 TBtu, or roughly 39%.

 

 

Energy Consumption for Air Travel

 

According to eia.gov, the total energy use for air travel around the world for 2017 was around 11.6 Quadrillion Btu’s.  The total energy used for all types of travel, including cars, busses, and trains was around 67.5 QBtu in 2017, with 48.5 QBtu coming from light duty vehicles (AKA passenger vehicles like cars).

 

 

It’s important to note that 1 Quadrillion Btu (QBtu) is equivalent to 1,000,000 Trillion Btu (TBtu).

 

 

Energy Consumption for Global Manufacturing

 

According eia.gov, the total energy used in 2017 for energy-intensive manufacturing was 164.3 QBtu. For non-energy intensive manufacturing it was 43.2 QBtu, and for other industrial energy use it was 32 QBtu, totaling 239.5 QBtu for 2017.

 

 

Energy Consumption for Decorative Holiday Lights

 

According to energy.gov, the united states uses up about 6.63 TWh, or 22.6 TBtu per year on decorative holiday lights.

 

 

Energy Consumption for Bitcoin

 

Now, according to wired.com, it is estimated that Bitcoin mining requires around 4 TWh per year, or 13.7 TBtu. So when we put this into perspective, we can see that Bitcoin mining consumes far less than most of our traditional sectors of energy consumption.

 

 

The chart below gives a better visual of the comparison.

 

 

 

 

 

 

Here’s a look at the same chart without the 2 huge outliers, Manufacturing and Travel…

 

 

 

Energy Consumption of the Global Banking System

 

According to bitcoin.com, it’s also estimated that the total global banking system consumes 650 TWh or 2217.9 TBtu annually.  While it’s hard to verify this claim, it is certainly not inconceivable that the energy required to power financial systems around the world is very high, especially when we consider every bank facility, every ATM, every online and offline transaction, every e-commerce website and the data centers behind them, and every major countries individual market and stock exchange. So it was worth doing a comparison on what is probably a conservative estimate of the Global Banking System.

 

Here’s a visual of how Bitcoin energy consumption estimate compares to the overall Global Banking System energy consumption estimate…

 

 

 

 

As we can see, Bitcoin is no more than a tiny blip when we consider where most of the worlds energy consumption really goes. So if you do have legitimate concerns about energy consumption, as we all should, you may want to first consider turning off your Christmas lights, canceling your next vacation flight, or start riding a bike to work, before looking to blame Bitcoin mining.

 

When we put things in perspective it turns out that Bitcoin may actually conserve massive amounts of energy compared to its counterparts.

 

 

 

 

ADDITIONAL REFERENCES

 

 

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Another milestone for Bitcoin, but I haven’t heard anyone talking about this… https://coinaccess.com/blog/another-milestone-for-bitcoin-but-i-havent-heard-anyone-talking-about-this/ https://coinaccess.com/blog/another-milestone-for-bitcoin-but-i-havent-heard-anyone-talking-about-this/#respond Tue, 28 Nov 2017 23:51:59 +0000 https://coinaccess.com/blog/?p=67 I am a big advocate for cryptocurrencies, especially Bitcoin, but I still have my doubts, and its not based on anything I've been reading or hearing anyone talk about.

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Bitcoin is on fire. It seems nothing can stop it’s growth. We’ve seen developers try to branch off with newer versions of Bitcoin, and we’ve seen governments try to regulate it to little of no avail. Bitcoin has earned its keep as far as I’m concerned. I am a big advocate for cryptocurrencies, especially Bitcoin, but I still have my doubts, and its not based on anything I’ve been reading or hearing anyone talk about.

 

I am a Bitcoin owner and I got in early, but just not early enough to cash in. Still, I’ve seen mind boggling growth and I can’t help but to get excited about it. I want Bitcoin to grow and grow and grow so that, one day, I can cash in and retire from my normal day to day routine. But that’s exactly where I struggle to see Bitcoins true worth, and why I’m leaning towards the speculative bubble theory.

 

You see, I’m basing the value of Bitcoin entirely on what I can one day cash it in for. Most of us are. That’s the irony of it all. The value Bitcoin is still completely tied to fiat currencies, even though its purpose for existing is to be an alternative for the status quo. We can’t seem to decouple the value of Bitcoin from other fiat currencies, resulting in it’s true potential being stifled by a lack of trust in what Bitcoin is really meant for.

 

I’m happy to ride this wave as far as it will take me, but if Bitcoin ever does reach $100,000, $200,000, or even $1,000,000 per coin, I wonder if cashing in will be an option at that point. By then, I imagine Bitcoin will have become a new standard for handling transactions, and the buying power that kind of valuation offers might not be worth trading away so easily. In that regard, it’s hardly a store of value like gold, stock, or bond investments that can one day be redeemed for spending cash. It will mean so much more if the day ever comes when Bitcoin is worth what dreamers dream today.

 

And that’s what worries me and why I lean towards the bubble theory. A lot will have to transpire in order for Bitcoin to become a new standard. And until it can become a new standard, we can’t truly valuate it as something more than a speculative bubble. Sure there are problems Bitcoin can solve, like double-spending protection and lower cost transactions. But are these problems enough to force massive adoption? For now it’s more of a novelty and really neat idea. Don’t get me wrong, I’m all for the idea of a free market currency, but that’s the layman in me talking.

 

I’d love to hear what others have to say about my thoughts. Have I completely missed the mark with my theories, or is my speculation sound?

 

Please let me know by commenting below.

 

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Bitcoin Exchanges and Other News https://coinaccess.com/blog/bitcoin-exchanges-and-other-news/ https://coinaccess.com/blog/bitcoin-exchanges-and-other-news/#respond Thu, 30 Apr 2015 16:41:38 +0000 http://www.coinaccess.com/blog/?p=58 In spite of the overall decline in Bitcoin's value over the past year, Bitcoin innovators and venture capital investors refuse to slow down.

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There are Bitcoin exchanges opening up around the world as Sweden’s Nasdaq Exchange Approves Bitcoin-based ETN and Coinbase, the United States (US) based startup, opens up a US based exchange. This is yet another step forward for Bitcoin that will help solidify it’s hold on the market and it’s place in our lives.

 

In spite of the overall decline in Bitcoin’s value over the past year, Bitcoin innovators and venture capital investors refuse to slow down. In more recent news, Goldman Sachs teamed up with IDG Capital Partners to invest $50 million in the start up Circle Internet Financial, which aims to improve consumer payments through Bitcoin technology. Goldman Sachs will be the first major bank investing in Bitcoin, and being a leader in predicting emerging markets, this is not an investment in Bitcoin that should be taken lightly. Granted, Bitcoin is a vastly different type of investment than typical foreign emerging markets, but that should not understate the fact that Goldman Sachs is not likely to choose a loser in the market as part of their investment strategy.

 

Bitcoin still has yet to reach mainstream adoption in the retail marketplace, but all of the news regarding innovations in Bitcoin and ongoing venture capital investments in Bitcoin should serve as a sign for it’s future success.

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IRS recognizes bitcoin https://coinaccess.com/blog/irs-recognizes-bitcoin/ https://coinaccess.com/blog/irs-recognizes-bitcoin/#comments Wed, 26 Mar 2014 17:26:53 +0000 http://www.coinaccess.com/blog/?p=50 The IRS announced that Bitcoin will be treated as a property, not a currency for tax purposes.

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The IRS announced that Bitcoin will be treated as a property, not a currency for tax purposes. The same regulation will also apply to other forms of “digital currencies”. This announcement is good news for Bitcoin investors because, as a  property investment, gains will be taxed as capital gains, meaning lower taxes for any profit made from an investment in Bitcoins. The downside is, more record keeping will be required for all transactions done with Bitcoins. This can prove to be a hard to manage for merchants who accept Bitcoins as payment. Every transaction will need to be treated as a stock trade, so to speak, with the loss or gain of that transaction being accounted for in bookkeeping, a characteristic not currently associated with typical currency transactions.

 

There is still time to tweak this new regulation in order to make things easier for record keeping, and it is likely that better solutions are still to come. All and all, this is a great step forward for Bitcoin lovers and investors, especially for those of us who bought into Bitcoin during high points, and can now claim a loss if the value of Bitcoins do not reach those original costs at the time.

 

 

Sources:

 

http://www.boston.com/business/personal-finance/2014/03/25/irs-categorizes-bitcoin-property-not-currency/LbsJtDY55xi5W0K8trwUWN/story.html

 

http://www.businessinsider.com/irs-bitcoin-is-property-not-currency-full-release-2014-3

 

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Investing in Bitcoins or Other Crypto-Currencies https://coinaccess.com/blog/investing-in-bitcoin-or-other-crypto-currencies/ https://coinaccess.com/blog/investing-in-bitcoin-or-other-crypto-currencies/#comments Mon, 10 Mar 2014 18:39:58 +0000 http://www.coinaccess.com/blog/?p=13 The same rules don't apply to all virtual currencies. Here are a few reasons why Bitcoin is the way to go if you want to invest in crypto-currencies.

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As an investment, all crypto-currencies are extremely risky. There is no guarantee that any one of the available crypto-currencies today will be around tomorrow, and most of them will likely dissipate once the quirks are figured out and market dominance is established. However, the appeal to invest in one or many of these crypto-currencies is stronger than ever. The opportunity to walk away with a very large return on investment is too hard to ignore, and this leaves many of us looking for the next big boom in other crypto-currencies similar to what we’ve seen with Bitcoins.

 

While opportunity may exist among certain crypto-currencies, a few things should be considered before throwing money into any form of crypto-currency simply because the price is right at the present moment. It is important to keep in mind that there is a false sense of opportunity that has been created because of the Bitcoin boom. It has become far too easy to make assumptions about what other virtual currencies will become just by looking at what Bitcoin has become. Unfortunately, the same rules don’t apply to all virtual currencies. Here are a few reasons why Bitcoin is the way to go if you want to invest in crypto-currencies:

 

  1. Bitcoin has the market or Network Effect. Thousands of merchants around the world have already incorporated Bitcoin into their sales strategies, and many of them have already started to create unique ways for customers to save when using Bitcoins for purchases. The reason is clear. Merchants can save on transaction costs by accepting Bitcoins, and those savings can be passed on to customers to encourage the use and market capitalization of Bitcoins. Of course, this is possible for any type of crypto-currency, but Bitcoin has already claimed the thrown on market capitalization and there’s enough financial and infrastructure support behind it to keep that trend going, and more importantly, to keep other crypto-currencies from disrupting the market in any way.
  2. Bitcoins are Scarce. With the network effect, this will generate more  demand over other crypto-currencies. The value will go up as demand increases. Even if other crypto-currencies can gain enough market share to compete with Bitcoins, the vast amount of available “coins” we see with these other crypto-currencies will cause them to be less valued over time. Supply and demand is a key factor for an investment opportunity like this to be worthwhile. Simply put, if there’s too much supply with these other crypto-currencies, the demand will never grow like it will for Bitcoins.
  3. Trust is also key. Bitcoins seem to be more secure than some other forms of crypto-currencies. Dogecoin, another popular crypto-currency, was hacked back in December. What is even more newsworthy, is the fact that two Bitcoin exchanges have also since been hacked, yet Bitcoin itself has held its value through the turmoil. Trust in the security of Bitcoin alone still exists. The inevitable government regulations will also create additional trust for a more widespread market. When there is less risk of losing you’re entire investment due to a hack, people will be more likely to invest, and in turn increase demand.
  4. Bitcoin was first to market. This is very important with any new product or service. Being first to market is a critical component to success. Bitcoin has set the stage for all other crypto-currencies. When we think of crypto-currencies, we think of Bitcoins. Then we may ask if other forms exist. This is huge because it is a form of brand positioning that separates Bitcoin from all the rest. By being first to market, Bitcoin not only grabbed hold of the market, it also branded itself as the only considerable option in the marketplace long before any other type of “currency” was developed. This will have long term positive effects for Bitcoin.
  5. Bitcoin set out to disrupt the financial market, and it has succeeded. Whether Bitcoins will be considered a real currency is not as important as the ultimate effect it has already made on the way online transactions will be handled in the future. No one knows for sure if Bitcoin will be the crypto-currency of tomorrow, but one thing is certain, crypto-currencies are here to stay. Even Google’s Jared Cohan thinks so. Bitcoins effect on the financial world is unmatched. This makes Bitcoin the clear choice for growth potential, at least for the foreseeable future.
  6. Bitcoin has venture capitalists like Marc Andreessen paving a way for its ultimate success. It has also seen large investments from the Winklevoss twins and Peter Thiel’s company Founders Fund. Other crypto-currencies like Ripple are also backed by venture capitalists, including Marc Andreessen. If there is another crypto-currency worth considering as an investment, it is probably Ripple’s XRP. But for now, Bitcoin still has most of the financial and marketplace support behind it.

 

So there you have it. At the end of the day, Bitcoin has the necessary support behind its potential for success. Other crypto-currencies are simply trailing behind. Though there may be opportunity for some, ultimately there’s no real value added by any of these other “currencies”, and that will be the deciding factor. Bitcoins are expensive, and for the cost of fractions of Bitcoins we can purchases thousands of other types of “coins”. Likewise, for the price of a solid mutual fund I can probably buy thousands of shares in some unknown penny stock that will never see any real growth, if it lasts at all. So as an investment, it is still my humble opinion that Bitcoin is the better option, even at the higher price point. I do believe fractions of Bitcoins will still ultimately be worth more than thousands of other crypto-currencies, with the only exception possibly being Ripple’s XRP.

 

Ripple has more to offer because it’s not just another crypto-currency. Ripple is a payment system that offers instant and nearly free global financial transactions for any fiat currency. This is value added that Bitcoin systems do not currently support. Although, Ripple’s XRP (the actual crypto-currency) has less to offer. What gives it value in my opinion, is its exclusive tie into the Ripple system and is intended to be a “bridge currency” between the exchange of two other currencies. Ripple also claims the most market share behind Bitcoin and can currently be purchased at $0.014. At this price point, I can justify the investment in a technology that does add value to the future of online transactions.

 

For now, no one can know for sure what the future holds for crypto-currencies, and any investment in this new technology is a very risky one to put it mildly. My advise is, invest only what you are willing to lose and not a dime more. You may just get lucky, but it is still very unlikely that any new or existing crypto-currency that offers nothing new beyond more “coins” in circulation, and possibly a slightly more efficient protocol, will ever gain the widespread acceptance and support that Bitcoin already has.

 

 

Other Resources:

 

http://www.entrepreneur.com/article/232078

 

http://techcrunch.com/2013/04/11/now-backed-by-andreessen-more-opencoin-looks-to-build-a-better-bitcoin-and-a-universal-payment-ecosystem/

 

https://coinmarketcap.com/

 

https://ripple.com/guide-to-getting-xrp-and-activating-your-ripple-account/

 

https://coinbase.com/

 

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Is Bitcoin a Good Investment? https://coinaccess.com/blog/is-bitcoin-a-good-investment/ https://coinaccess.com/blog/is-bitcoin-a-good-investment/#comments Fri, 28 Feb 2014 20:21:43 +0000 http://www.coinaccess.com/blog/?p=6 Comparing Bitcoin to the Tulip Mania seems a bit far-fetched, or maybe not, but the reluctance to see this new form of a payment system as anything more than a bubble is not unfounded.

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Bitcoin, a “cryptocurrency” that has started to gain wide spread acceptance in recent months, has many investors around the world believing it is the next big technology breakthrough since the dawn of the internet, and that may actually be the case. The technology itself is fascinating. Bitcoin has created a way to streamline online transactions with ease, privacy, and even cost savings to both consumers and merchants. It has revolutionized the way online transactions can be handled, which is likely why it has gained such widespread acceptance in such a short period of time. So the question remains, should you invest in Bitcoin, or any other form of cryptocurrency?

 

The answer to whether or not Bitcoin is a good investment is twofold in my opinion. There is no doubt that Bitcoin has a perceived value that will last for some time. It also has major venture capitalists, like Marc Andreson, funding companies like Coinbase.com for millions of dollars, and online merchants like Overstock.com, tigerdirect.com, Etsy, OkCupid, and Zynga, just to name a few. The online super giant, eBay, is also considering accepting Bitcoin soon. This is all great news for those of us invested in this phenomenon, but the speculation is not all good. Bitcoin has many naysayers rejecting the idea, calling it a bubble, or this generation’s version of the “Tulip Mania”.

 

Comparing Bitcoin to the Tulip Mania seems a bit far-fetched, or maybe not, but the reluctance to see this new form of a payment system as anything more than a bubble is not unfounded. Bitcoin is intended to be an un-regulated “currency”. It has no central authority, and therefore, no real control over value beyond what the open market deems. Many see this as a good thing, but ultimately it is not. In order for any type of currency to gain trust it will need a central authority to regulate the way it is traded. Without that regulation, the trust will eventually die away. We already started to see this happen when Mt. Gox collapsed and Bitcoin owners lost Bitcoins valued in the hundreds of thousands of dollars overnight. Since there is no regulation, that money is as good as gone forever. The flip side of this is the response by governments to begin investigating ways to regulate Bitcoin. This has reestablished the dominance Bitcoin has in the marketplace, forcing governments to take notice and do something. Still, Bitcoin has a ways to go before its future can really be known.

 

So is Bitcoin a good investment? No, it’s a terrible investment with no guarantees whatsoever, and that should be our first response. However, as a modest investor, I personally added a small amount of Bitcoins to my own portfolio, and I plan on keeping them for the foreseeable future. There is, at the very least, perceived value that has the backing of major investors and merchants who want to see this thing succeed, many of which have a track record worth noting, so following in their footsteps might just be a good idea. So if you have some money put aside for a night out or you are willing to take a big chance on something that will most likely pay off big if it does succeed, then Bitcoin is a reasonable investment. My advice, for what it’s worth, is to invest only what you are willing to lose and leave it at that, but never invest without doing your own due diligence and research.

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