What I'm thinking and working on….
You should be building your own bitcoin empire. Even if you only put an hour a week into it, it would be time well spent. You should gain several sources or contacts to receive bitcoin from as well as considering a weekly savings plan of a small amount.
You also need to learn several places that you can use bitcoin. When you do both of these, you will hopefully start to see the value of dealing in this new currency on the side.
This hash tag seems to be centered on bitcoin and etherium switching places in market capitalization which is calculated using total coins available multiplied by the current market price. Etherium ha some questionable things about its initial release and ether is not meant to be a currency, but a fuel for the smart contract platform which is also used for ICOs..
There are other places to look for this technology. Rootstock is meant to be a smart contract platform that will run on bitcoin and there is also etherium classic (ETC) as viable future alternatives.
These ICOs are the talk of the town these days as the raise great sums of money. I want communicate one possible future where we don’t end up in a destructive crash.
Maybe we could run our own personal corporation where we raise funds by selling our own ICO. Then, we could buy back the shares later on the market if we get positive returns from our actions. It would take a lot of discipline, but maybe someone could pull it off. The first thing that investors want to know is the total supply of tokens and are some more going to be created in the future.
This way of raising capital is better than taking a loan from a credit card, right? What would you need to do to keep your investors happy? Do you need to be a master of PR and letting your investors know what is happening in your life/business?
If the investors need part of their funds back, they could sell their coins/tokens at the market price. Would people crash your token’s market, or would your token become extremely valuable in multiples? Well, I guess there are still more questions than answers. Some people may make it through this time shining as a handful of companies made it through the dot com bubble.
The real value is in bitcoin, but a lot of us like to speculate in this market. I found this technique on a VLOG by Trevon James. [Quad Squad] I guess it was his friend Craig’s suggestion. I don’t use the Jaxx wallet, but I was able to adapt the idea to Coinigy. I think of this as one of those new fidget spinners. It keeps you out of trouble by keeping you balanced and busy. (Warning: Trevon does let some curse words slip in from time to time)
Traditionally people try to find a “bottom” of a market and go “all in”, but this balanced approach pushes you to buy and sell only a little at a time. You can do this with dollar value or bitcoin value depending on what platform you use and how you make it work for you.
So far, this idea is working well. The account is up in bitcoin value (so far) and I get to participate in daily trades. This account is only 10% of my holdings, so I can afford to loose it all. Another risk that I forgot to mention is that there may come a time where you can’t recover your coins from off of an exchange because of an event like a hacking. This is another reason to use only a mall portion of your total bitcoin holdings.
If you want to do more of a traditional trading approach, I suggest you go to The Rational Investor.
I lost the most money on the website bitbond. On the website, you lend bitcoin to people all around the world.
This wasn’t my first time doing peer-to-peer (P2P) lending. In 2006 to 2009, I was lending money to strangers in the USA and getting them out of payday lending traps with 300% APR. I had some defaulted loans, but I still came out ahead by 16% before the website stopped users from lending from New Jersey.
On Bitbond, it was another story. Over half my loans did not pay. So that was one lesson learned. Also, even if they did pay back with interest, the returns would not have beat the returns of holding bitcoin over the past year. So, always hold a high percentage of your crypto currency wealth in bitcoin for the long term. Bitbond is good if you want to give away money to people all around the world in this time of great financial debt right now.
I like to use a software called Coinigy to trade bitcoin and alt-coins. They have a website and andoid phone app. They have a great charting library and it is easily rated better than the charts offered on the websites of the exchanges. This can give you a better view of the market. They have API connections with some exchanges where you use the website or app to command your trades using your account on the exchange. Then you could easily move from exchange to exchange in the software and track multiple trades. I also like the “favorites” view on the android app which gives me a views of all of my favorite markets all at once.
While investing, one thing to try to protect yourself from is downside risk. What happens if your investment looses value?
One thing that I have tried to do is invest in projects that return fiat/cash monthly and buy bitcoin to pay me back. That way, if the market price of bitcoin drops, these investment would buy more bitcoin at the cheaper price to add to my collection.
Another point is that selling bitcoin for fiat/cash is not it’s only use or way to get out of bitcoin. There a companies that accept it for payment. I like to use Purse.io and have people buy Amazon wish-list items for my bitcoin at a discount!
The value of bitcoin is a difficult question because so many miss it the first few times they hear about bitcoin.
These are the things that I have learned in my time with bitcoin. I hope they help you to think of bitcoin a little differently.
Charles Hugh Smith had a great article on the future price of bitcoin. He touches on several points of the bitcoin nay-sayers, including the talk on bitcoin bubbles and the beanie baby craze.
ICO stands for Initial Coin Offering. it is a slight change from IPO Initial Public Offering on the stock markets. At first there were only clones of bitcoin being released, but now it has progressed to tokens on the Etherium network. The term is now used for both alt-coins and tokens. These events are getting a lot of attention because Millions of dollars are being raised for these groups, so with only a white paper and no proof of concept.
Here’s a great interview from MadBitcoins on the current ICO market.