Back to Blog
Secret $20 bitcoin blueprint6/19/2023 ![]() Transactions are added to "blocks" or the links of code that make up the chain, and each transaction must be recorded on a block.Įven bitcoin critics like Dimon have said they support the use of blockchain technology for tracking payments. So is there anything truly valuable about bitcoin?īitcoin is built on the blockchain, a public ledger containing all the transaction data from anyone who uses bitcoin. Rather than a currency, bitcoin is being treated more like an asset, with the hope of reaping great returns in the future. Then again, if bitcoin crashes, at least I'll always have the socks. ![]() But if I use bitcoin to buy $25 worth of socks on Overstock today, and the price of bitcoin quadruples next week, I'll feel like those socks actually cost me $100. Right now, I can use my bitcoin holdings to pay for purchases at Overstock ( OSTBP), or book a hotel on Expedia ( EXPE). Related: Bitcoin boom may be a disaster for the environment The surge and volatility of bitcoin this year may be great for those who invested early, but it undermines bitcoin's viability as a currency. Or at least that was the promise when it was created in 2009. It works across international borders and doesn't need to be backed by banks or governments. Why would anyone want or need to use bitcoin?īitcoin serves as a new kind of currency for the digital era. Others, like Dimon, have said it's even " worse" than the Dutch tulip mania from the 1600s, considered one of the most famous bubbles ever.Īs Buffett put it back in 2014, "the idea that has some huge intrinsic value is just a joke in my view." Bitcoin is not backed by a company's earnings, or the strength of a government and rule of law. Some investors have likened the bitcoin hype to the dot-com bubble. But you can get burned assuming it will keep skyrocketing. And when the value of your bitcoin doubles in a week, as it did for me, it's easy to think you're a genius. Small investors like yours truly have a fear of missing out on a chance to get rich quick. Yet a key reason the price of bitcoin keeps going up is, well, because it keeps going up. ![]() Related: Bitcoin plunges more than $2,500 after hitting new record The Nasdaq and Chicago Mercantile Exchange plan to let investors trade bitcoin futures, which may attract more professional investors. Dozens of new hedge funds have launched this year to trade cryptocurrencies like bitcoin. Regulators have taken a hands-off approach to bitcoin in certain markets. There's a long list of factors people may point to in an attempt to explain this. ![]() Other cryptocurrencies have seen similar spikes, though they trade for much less than bitcoin. By this week, it was up to $12,000, and then it really took off: The price topped $17,000 on some exchanges Thursday, and $18,000 on at least one. It's an investing frenzy, plain and simple.īitcoin cracked $1,000 on the first day of 2017. My wife's opinion of me has reportedly decreased by the same amount. One week later, it was (briefly) up 100%. (A few days later, I bought another $150.) By the time we got to our hotel, my stake had already gone up 10%. When I saw the price of bitcoin fall to $9,500, I pressed buy, defying the wisdom of two finance titans and my wife. ![]() He said he hoped it would be worth enough one day to buy a house. Earlier this month, one college friend casually told me over drinks he'd made tens of thousands of dollars investing in another cryptocurrency. Īnd yet bitcoin has climbed more than tenfold since Buffett's warning. JPMorgan Chase CEO Jamie Dimon recently called bitcoin a "fraud" and suggested people who buy it are "stupid." Warren Buffett called bitcoin a " mirage" in 2014 and warned investors to "stay away."Īre you trading Bitcoin? We want to hear from you. ![]()
0 Comments
Read More
Leave a Reply. |