In case you haven’t noticed, Bitcoin is going mainstream.
You’ve probably seen some news reports about Bitcoin on the mainstream news channels over the last few years that brought the cryptocurrency to your attention.
Those stories were usually about the extreme highs Bitcoin had reached in comparison to the Dollar or announcements of its imminent demise following a spectacular price crash.
Maybe you remember, back at the end of 2013, hearing all the hoopla about Bitcoin as it rose to $1,200 in value. And then, not too long after, how it crashed in value down to $200 per coin.
There have been several other price spikes and crashes since then. It’s par for the course with Bitcoin.
However, look at a chart of Bitcoin’s value since its inception in 2009, through all its highs and lows, and one thing in clear: the value of Bitcoin has been on an upward trend since its birth.
Last week, one Bitcoin was worth over $7,000 (it’s dropped in value by about 15% this week).
Famously, the first Bitcoin transaction was two Papa Joe’s pizzas bought for 10,000 Bitcoin in 2009.
Those coins, had they not been spent would have been worth over $70,000,000 last week or a slightly smaller sum of $66,000,000 today (at time of writing).
Bitcoin has been seen as this weird thing that’s the purview of geeks and nerds.
But some clued in people, both entrepreneurs and those in large organizations, recognized its potential and what it could do for the people of the world.
Overstock started taking payments in Bitcoin a few years ago. An increasing number of companies have offered a Bitcoin payment option as well.
Now, as I said above, Bitcoin in going mainstream.
The fad that it was considered by many, including those in the financial world, turns out not to be a fad.
Bitcoins’ continued success has confounded many. Included in that number is Jamie Dimon, President of the JPMorgan Chase bank who recently poo-poohed Bitcoin quite publicly.
Many in the Bitcoin world think the penny finally dropped for Dimon and he now realizes what an existential and exogenous threat it is to the banking system – a system that’s rife with manipulation, fraud and corruption.
Bitcoin allows people to be their own bankers.
When sending Bitcoin from one party to another, there is no middle-man scalping high fees off the transaction. There are no border controls and no foreign currency conversion fees to worry about. Anyone in the world can send Bitcoin to anyone else with a Bitcoin wallet.
Bitcoin uses a peer-to-peer system so it’s completely decentralised.
Of course, The Powers That Be don’t like this because they can’t track transactions and worse, can’t tax them.
Bitcoin runs on what is called the Blockchain which is, essentially, a ledger of every Bitcoin transaction that has ever occurred. And every computer that has a Bitcoin wallet also has a copy of that ledger.
What that does is enforce honesty in transactions. The books can never be “cooked” so to speak, because every copy of the ledger in the world would need to be hacked with fraudulent transaction information. And that isn’t going to happen.
In terms of value, Bitcoin has outperformed gold and silver, which have been fairly stagnant the last couple of years due to banks manipulating their prices. And Bitcoin has even outperformed stocks. Many stocks are seeing big price increases because companies are buying back their own stocks, giving the impression that there’s big demand for them and pushing up their price. Again a market manipulation.
Pensions & Retirement Plans
It’s now even possible to have a Bitcoin IRA. I wonder how many reading this post know of someone who’s recently reached pensionable age only to find that their pension is worth less than they paid into it?
I recently received a statement for my own pension plan. I’ll be able to cash it in in about 2 decades(!) but just this year alone, it lost 3% of its value. At that rate, my pension will be worth diddly-squat when I finally reach pensionable age.
And bankers and investment fund managers expect to receive bonuses for “sterling” performances like this?!
I’ve been involved with Bitcoin since 2013. I’ve bought it, sold it, mined it, made money and lost money with it. Overall, I am still nicely in profit with it.
Screw my pension provider. I’m looking at some way to move what’s left of my pension plan into gold (so a percentage will at least hold its value over time), silver (same reason as gold but you can buy a lot more silver for the same amount of money and silver is very undervalued right now) and Bitcoin which is the real speculative investment.
If I leave my pension where it is, it’ll lose substantial value anyway. Might as well take a chance moving some of it into Bitcoin.
Is Buying Bitcoin Risky?
Buying Bitcoin in anticipation that it will rise substantially in value over the next decade or so is definitely a speculative act.
That said, The Motley Fool recently predicted that Bitcoin could see a 22x rise in value in that time. That would put the value of one Bitcoin in the $100,000 – $150,000 range.
Others think that a value of $100,000 per coin is conservative and a $1,000,000 per coin value is more realistic.
There will only ever be 21,000,000 Bitcoins in the world. 16,000,000 have already been mined. And those 16,000,000 have to be spread across the world’s population.
And, as more people become aware of Bitcoin and what it has to offer, demand for the cryptocurrency can only increase. It’s the law of supply and demand for a limited resource.
When buying Bitcoin, you don’t need to buy discrete coins. That would put it out of the reach of most of the world’s population, the very people it’s aimed to help.
You can buy fractions of a Bitcoin and spend just a few dollars buying a small portion of a Bitcoin, so anyone is able to own some.
Buying Bitcoin is all well and good, but I want my Bitcoin to work for me, just as I want savings in a bank to earn interest for me..
So I’ve been looking at different ways to acquire Bitcoin rather than simply buying it (which is still a good thing to do).
I joined a company called iCoinPro some months back because one of the things they offer are simple trading strategies for leveraging your Bitcoin.
I average about 0.5% – 1% profit per trade. Most are successful, profitable trades. But some don’t go well, such is the volatile nature of cryptocurrencies.
Let’s put that in context. You’re lucky of a bank pays you 1% interest per year on a savings account. And then. depending on where you live, your government may take a slice of that profit in tax.
Let’s say I make 1% per week on my trades. I start with a nice round $100 worth of Bitcoin and trade it for other cryptocurrencies.
After one month, my stake is now worth $104.06, a return of 4%.
After 1 year, my stake would be worth $167.77 – a 67% return!
Now, it is possible to earn a 1% per day return (on average) if you can find the right kinds of trades each day.
This might sound completely unrealistic, but with that rate of return, a $100 stake would be worth $3,778 at the end of a year.
You would need to compound your investment (reinvest it fully) rather than drawing profits from it for that to happen.
Even at an average of 0.5%, your $100 would be worth $600 after a year.
From experience, I can tell you that iCoinPro’s simple trading strategies do work.
Another program I’ve recently become involved with teaches the ordinary person how to buy (and eventually trade) Bitcoin and what Bitcoin is all about.
It’s free to join. And if you become a fully verified member, you can even earn Bitcoin by having people sign up under you. It’s what I’ve been recommending to friends as it’s a free route into understanding Bitcoin and what it has to offer.
Bitcoin is here to stay from what I and far better educated people than me can see.
Despite the current perceived high price of Bitcoin, it’s still early days where this cryptocurrency is concerned and big gains in its value are expected over the coming years.
It is a volatile asset so expect its price to rise and fall, sometimes substantially (in either direction).
Don’t let big price drops panic you. Ride the rollercoaster in the expectation that there’ll be a big payoff at the end. People who panic tend to sell when the price is dropping and end up buying back in at a higher price than they sold at.
If the price spikes, you could realize some profits. That could be a tough call – cash in early with definite profits or hold on in the expectation that there’ll be even bigger profits further down the line.
Whatever happens with Bitcoin in the years ahead, it won’t be boring!
But, in a few years, will you be one of those kicking themselves for not getting on the Bitcoin wagon when you had a chance?
Tagged with: bank fraud • bank manilpulation • banksters • Bitcoin • Bitcoin IRA • Blockchain • buying Bitcoin • Cryptocurrencies • cryptocurrency • invest in Bitcoin • Jamie Dimon • pension • retirement plan • retirement planning
Filed under: Bitcoin