Is It The Right Time To Invest In Bitcoin?

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Q:  Is it the right time to invest in Bitcoin?

Close up 3D illustration of paneled golden Bitcoins

 A: 1.4 billion invested in 2016. Thinks investment will slow down this year. Will be worth millions each or nothing. But thinks it is here to stay.

Commentary: Is buying anything at its peak ever the right time to buy? This is the test of the truly disciplined investor. A key reason Bitcoin saw so much interest in 2016 is global economic uncertainty throughout the past decade and the global proliferation of the blockchain through the efforts of individual activist investors and entrepreneurs.

If by attempting to chase the ensuing record-breaking market-cap rally in 2017 you believe that by “now” being “the right time” is due to a break out in mainstream acceptance in bitcoin then the question is a fair one. The answer attempts to give confidence in the current sentiment that bitcoin investments will continue to grow more lucrative despite the “slow down” the author is probably inferring to sourced here by CB Insights.

Now is Definitely A Historic Moment That Requires Examing

The author of this bullish thesis chooses to interrupt the data optimistically as Blockchain backed technologies and Bitcoin startups have thus been able to penetrate the moat surrounding the financial technology industry.This is in fact, true, in 2016 investing among those startups did increase %5 from $524 million to $550 million, with Blockchain backing new ventures on the Australian Stock Exchange, and a breakthrough innovation in providing the transaction ledger for the NYSE traded company Overstock.

But despite these innovations, nobody is exactly sure why the rate of startup investing has slowed from the previous boom felt in 2013. Before 2013 there was virtually no interest backing these ventures alone from the first entrepreneurs like Roger Ver. With the public aware of gaining attention through the U.S. government’s seizure of millions of dollars in Bitcoin from the dark web marketplace “The Silk Road,” global investing in Blockchain and Bitcoin boomed to $93M that year and exponentially swelled nearly four times in 2014 to $357M. It was then when Bitcoin saw its historical high that we have only recently begun to recover from the pursuing sell-offs. This is why 2013 in my opinion, is a key factor in understanding the dynamics of investing in today’s cryptocurrency market.

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Blockchain and Bitcoin Investing Startup Plateau  and Inflection Point

Despite 2013 and 2017 seeing the market capital and price of Bitcoin expand exponentially due to comparable interest and organic growth, it seems that 2017 will now break the trend as the price of Bitcoin battles to maintain its recent returns this year.  Although Bitcoin and cryptocurrency have found wider usage because of this decade’s global economic turmoil, we are venturing into uncharted waters.

What I mean is that while the price of Bitcoin continues to soar in a post-Trump presidency as it did in late 2013, global investing increased in 2014 to help the cryptocurrency gain acceptance. Unfortunately, it wasn’t enough to maintain the historical high, and the price dramatically fell off. But even in 2015, at a time that Bitcoin’s price went virtually sideways for the year, global startup investing managed to increase around one-third.

The positive trend in growth has already shown signs of reversing when you consider that last year Individual investment opportunities were down from 161 in 2015 to 132 in 2016.Keeping this in mind, it is hard to be optimistic about 2017’s projected startup investing when you consider that most of last year’s $550M was funded during the first two-quarters of 2016. Last years %5 bump only indicates that a recession of venture capital within the niche market while global investors seek to shelter from economic strife.

This could be seen as a reliable indicator of a broader market slowing down because of more competition among the industry. The more options that have become available in the fin-tech marketplace may stabilize the price of services rendered. Another possible explanation for the slowdown could be that people are investing in bitcoin itself rather than the start-ups or even that consolidation has begun to occur within the industry. No matter the reason for the lack of startup funding, the bitcoin community has reaped the benefits of an alternative investment in an uncertain global environment.histoicbit

Key macroeconomic events have driven interest in bitcoin past the concept and novelty stage and attempt to place it in the mainstream. From European economic isolationist to the Asian Subcontinent and Greater Eastern economies faltering on debt and inflation, Bitcoin has continued to draw investors to the table despite the current lack of venture capital heat. It will take a comprehensive look at local bitcoin economies in places with a dense population, like India where there are millions of potential user that may supply the catalyst to push this inflection of technological funding into new rounds of financing. The growing acceptance of cryptocurrency still provides ground-zero growth opportunities like the increasing need for a cashless solution for the population of India or the citizens of state-controlled economies like China only further complicates the question of timing when it comes to investing in the crypto market-place.

Ultimately, it isn’t a question of is now a “make or break” moment for bitcoin and Investors are not in much risk of missing of continued growth and high returns, it is in my opinion still a “wait and see” opportunity. That may not sound like much fun for the moment, but it gives a chance to better understand all the moving pieces to questions you have asked. In my next update, we look at the differences between Blockchain and Bitcoin along with potential competitors and complimentary cryptocurrencies and digital ledger systems. I hope to illustrate the while we wait to see if the Bitcoin does become more valuable as the demand increases, we can profit from other cryptocurrencies. This will help lay the path to better understand the security features of blockchain and bitcoin. Eventually, my goal is to educate you to the point of understanding the various ways in investing in cryptocurrency, whether it is trading Bitcoin understanding the cost associated with mining.

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Beware of Crypto-MLMs and High Return Investments on Social Media

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via Beware of Crypto-MLMs and High Return Investments on Social Media – Bitcoin News

Unfortunately, the world of cryptocurrency has seen a bunch of people running scammy ‘investments’ preying on people’s lack of knowledge. Over the past couple of years, shady organizations such as Onecoin, MMM Global and others have brought a slew of shady characters operating get-rich-quick schemes and Multi-Level Marketing scams. It’s good to know how to spot these types of sketchy operations and refrain from participating.

Also Read: How Sustainable Will Bitcoin Be After the Apocalypse?

Beware of So-Called Online Investments

Beware of Crypto-MLMs and High Return Investments on Social MediaBitcoin.com has done extensive reporting on the likes of the so-called digital currency Onecoin. We’ve also covered a few other MLM operations that use virtual currencies and have uncovered many red flags associated with these businesses and their employees. Besides Onecoin, there is a vast amount of other scams that people should be aware of so they can better protect themselves and their legitimate investments.

Social media has a broad array of groups that pay particular attention to the cryptocurrency landscape. However, when following these groups on Facebook, Google Plus and many others, there is a ton of scammers preying on visitors. They offer unheard-of returns on investments for those wanting to join their ‘club’ as well as promises that will never materialize. Here are some promises from people offering ‘investment opportunities’ within crypto-groups on social media:

31 days online, 30 days paying. 0.3% hourly forever, 7.5% daily forever, 60% weekly forever. 0.001 BTC minimum, and automatic withdrawals.

OMG! Just signed up.. $4 bonus… with potential income of $100 a week or less.. Completing simple tasks, no investment, totally free… just sign up.

New Doubler Investment Site!!! 0 running days, 200% hourly for 50 hours, 240% after one day, 355% after two days, 470% after three days, 585% after four days, 600% after five days, Min deposit:$1, we accept bitcoin.

Beware of Crypto-MLMs and High Return Investments on Social Media
There is a lot of shady investment opportunities on Facebook, Google Plus, Linkedin, Twitter and more.

‘Scam Artists: the Evil Cousins of Genuine Entrepreneurs’

Many of these types of investment scams ask for people to send a minimum of bitcoin so they can expect a bigger payout in the future. Furthermore, a lot of these shady organizations run under a Multi-Level-Marketing (MLM) business model. MLMs consist of people who are selling in a pyramid or referral type of marketing system. The business model requires recruiting more people to fund the entire network and has always been a controversial business plan. Companies can often be seen operating in this manner using bitcoin within their operations and accrue revenue from direct sales and downline distribution. And yes, there are legal MLM structures in many markets that run legitimate business operations and should not be considered Ponzi schemes.

However, a large portion of MLMs associated with Bitcoin (if not all) are shady operations, so buyers and potential registrants should beware. Scams in relation to Bitcoin mean the community must continuously be on top of its game to expose such operations. Austrian economist Jeffrey Tucker believes scams are a form of flattery and a bullish sign for the digital currency. Tucker explains this rationale in 2015 stating:

Let’s ask a deeper question: why are scam artists so attracted to Bitcoin? The answer is actually flattering. Scam artists are the evil cousins of genuine entrepreneurs. They are alert to new opportunities. They are attracted to ventures that are popular among the smart set. They are profoundly aware of what people imagine to be the next big thing. Their interest in Bitcoin, then, is actually a bullish sign. I would be more worried about this market if scam artists were not interested in it.  

If it’s Too Good to Be True, It Probably Is

A lot of online resources and consumer reports may help distinguish whether or not an ‘investment operation’ is a scam. It’s safe to assume that most of the MLMs and significantly ‘high investment’ return opportunities associated with Bitcoin are not legitimate operations. Most of these scam artists and fake investments are pretty easy to spot, and people should be very cautious when approached by individuals soliciting money on the internet. If the investment sounds too good to be true with wild promises of daily payouts, or you need to recruit hundreds of people to earn income, then it’s probably not in your best interest.

What do you think about MLMs, doubler investments, and scam artists using Bitcoin in the backdrop? Let us know in the comments below.


Images via Shutterstock, Pixabay and various Facebook groups.


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Goldman Sachs Files Blockchain Patent for Foreign Exchange Trading – CCN: Financial Bitcoin & Cryptocurrency News

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Goldman Sachs has submitted a patent application focusing on how blockchain could cut out the middle man with transaction costs, claiming that the technology could change the current process.

The patent, “Systems and Methods for Updating a Distributed Ledger-Based on Partial Validations of Transactions”, which was published on September 8 by the U.S. Patent and Trademark Office (USPTO), was initially filed in March 2015, making it Goldman Sach’s first blockchain focused patent.

via Goldman Sachs Files Blockchain Patent for Foreign Exchange Trading – CCN: Financial Bitcoin & Cryptocurrency News

Sydney Stock Exchange Confirms Public Blockchain Platform for Instant Settlements – CCN: Financial Bitcoin & Cryptocurrency News

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The Sydney Stock Exchange is pressing ahead with a new blockchain settlement system that will position itself as a low-cost alternative to the current clearing and settlement system delivered by the Australian Securities Exchange (ASX).

via Sydney Stock Exchange Confirms Public Blockchain Platform for Instant Settlements – CCN: Financial Bitcoin & Cryptocurrency News