In a recent Cryptocoins News article, Jonathan Saewitz says that Bitcoin Price Defies Expectations.
A more useful article might simply state that Bitcoin has gone up about 10,000% per year over the past 5 years.
I agree with the peanut gallery. Saewitz’s Cryptocoins article is not that helpful. It would be more helpful to point out that Bitcoin has had a simple pattern and nearly reliable pattern to note. Over the past 5 years, Bitcoin has had an approximately 3000% run-up about every 6-months. Each run-up been immediately followed by an approximately 50% correction.
We must also account for a long-term stabilization of Bitcoin, which means that the huge return on investment will be slightly less huge of a return per Bitcoin. The return will still be huge, as will the corresponding risk.
In a future post on the Bitcoin Blogs, we will see two secret words that will tell us when to buy and when to sell Bitcoin.
Corey Chambers, The Bitcoin Blogs
Bitcoin Investment Wealth
Congratulations to everyone who bought Bitcoin when I first suggested it in April 2013. Your $83 has now become more than $400.
Many have told me, “I don’t care about Bitcoin because I don’t know what Bitcoin is.” Understandable because Bitcoin is about computer programs and economics, two mind-numbingly tedious and dull topics to most people. I see now that Bitcoin will inevitably result in even more revenge of the nerds as programmers and computer geeks were among the first to start mining and buying Bitcoin. Many of them have already made a million, which will soon turn into billions, then the first Bitcoin trillionaire will follow.
I’m absolutely ecstatic about Bitcoin because I’ve been an entrepreneur since I was a baby. It is always especially fun to be in the know about something that the general public does not know about, but it quickly becomes more fulfilling to share the information and eventually share the wealth.
Another interesting thing about Bitcoin is that it could cause the dollar and other currencies to crash and burn as more and more people catch on that they can use money that goes up in value instead of down because the government will find it difficult or impossible to devalue Bitcoin.
Bitcoin will hasten the decline of U.S. influence in the world, increase the economic power of individuals (especially those who mine or purchase Bitcoin before it becomes universally accepted), and will actually make it difficult for the U.S. and other countries to finance unnecessary wars.
Bitcoin will help change the political landscape of the U.S. and the world. The first supporters and early adopters of Bitcoin were disproportionally Libertarians like myself who want more independence from the government. In fact, so many Libertarians have mined and purchased Bitcoin that the Libertarian Party (already the fastest growing party) could gain the largest number of millionaires and billionaires, giving the Libertarian Party the edge in future elections and more power to rein in an overreaching government.
The best news is that the Bitcoin revolution has just begun. Bitcoin is not an old fashioned investment or a half-baked scheme. It is a limited digital currency with EXTREMELY HIGH INTRINSIC VALUE that is being used by thousands of new people per day. Bitcoin absolutely MUST go up to $10,000 per Bitcoin in a relatively short time in line with the liquidity that it will represent with increased use. We see nothing replacing Bitcoin soon, so load up on Bitcoin at localbitcoins.com or coinbase.com
Everything will eventually to to $0.00 given enough time. Bitcoin will go toward zero after the world starts adopting something better to replace it. So far, Bitcoin is growing in popularity every day. Increasing usage forces the price to rise in conjunction with the capitalization.
This week, the IRS announced that it will require Americans to use what could be a very complex method to track Bitcoin gains. That caused the price to drop more this week. Ultimately, however, a simple method will work just fine to calculate Bitcoin gains or losses for most American Bitcoin users.
The smart investors bought as many Bitcoins as could be afforded this week to take advantage of the price drop.
Corey Chambers, The Bitcoin Blogs
Bitcoin: Both Buffett and Andreessen are right
Christopher Matthews of CNN Money has written that Warren Buffet and Marc Andreessen are both right although they seem diametrically opposed. Matthew and CNN have got it right as well.
Matthews explains that Buffett and Andreessen are both very wealthy and successful investors (Buffet much wealthier than Andreessen) yet they have very different investment plans. With higher risk and higher reward, Bitcoin fits Andreessen’s plan. Andreessen is also the technology venture capital guru. Warren is truly old-fashioned in most ways, and does not invest in risky ventures. Buffett also is admittedly not into technology.
It fits that Bitcoin is ideal for high-risk, high-return technology investors. Buffet is correct that Bitcoin is not a match for low-risk traditional investors.
As a computer programmer, economist and payment processing professional who loves new technology, my heart is firmly with Andreessen in this matter. In fact, my calculations says that it is risky to not buy a small amount of Bitcoin, even for old-fashioned investors. Losing out on a financial opportunity is a real type of loss. Bitcoin is certainly worth researching for most investors. The safe and smart thing for most is so buy as much Bitcoin as one can afford to lose.
Corey Chambers, The Bitcoin Blogs
WARREN BUFFET REBUFFS BITCOIN
by Corey Chambers
Ben Eisen of MarketWatch recently wrote about how Buffett likes Pepsico, but he does not like Bitcoin. Is that a shock to anyone? Buffett said that Bitcoin is “not a currency”. He said that it will not be around for a long time.
MarketWatch Buffet Bitcoin Report
When it comes to Bitcoin, Buffet does not know what he is talking about. Buffet is most credible when he sticks to what he knows. Buffet knows large cap companies. He knows to buy quality at a low price and sell high over large market cycles. While Buffet is correct about Bitcoin being more short term. Buffet is correct that Bitcoin is probably not a super long term investment. Bitcoin has already proven itself for 4 years however, and Bitcoin is just getting started. Bitcoin is opposite of what old-school Buffet all about. Buffet does not invest in bleeding edge innovation technologies like Bitcoin, so his smartest move is to sell against Bitcoin. Buffet played his smartest move like Billionaires can be counted on to do.
Bitcoin does likely have a shorter life span that Pepsico or Coca-Cola. Bitcoin is more predictable than many are aware of. There is one word that speculative investors need to keep an eye on in order to know when to stop buying and when to start selling off Bitcoin. The Bitcoin Books will provide that secret word.
@Corey Chambers, The Bitcoin Books