Category Archives for BitCoin

Reviewing the Cryptocurrency Results First Quarter 2018, and a Look at the Media Industry Around it

March 14, 2018

Greg is out there, somewhere, kicking himself that he doesnt now own an island. Greg has a familiar story for anyone who has dipped into the cryptocurrency world. Towards the end of the 2000s, Greg sold his nearly 2,000 BTC for 30 cents a piece, making a tidy profit after he bought them nearly a decade before anyone even knew what this was.

In 2011, he publically remarked that each coin is worth $8 and he regrets the sale. Of course, his valuation now would be somewhere in the area of $20 million. This is not the only story. How can something go from a value of a few cents to hundreds of dollars in just a few short years? What has changed?

Bitcoin, and many cryptocurrencies expected to appear in its wake are all in a speculative void. In many respects, Bitcoin is only worth what the public says it is worth. It creates a speculative marketplace of risk and wonder. Can a cryptocurrency investment pay off with millions of dollars? Is it worth dipping into now or is it too late? 2018 is a pivotal year for the coin, based on wide speculation, rumors, and the workings of the crypto marketplace.

Another Greg in 2018

Could there be another Greg in 2018? This is someone who decides to sell now, comfortable with their earnings. The Bitcoin marketplace is wavering in 2018, and a sale is not necessarily a terrible idea. The big Bitcoin sell-off has slowed down, but there are many still holding on. The fear may be that they are another Greg. They have a modest amount of coins, perhaps pocketing a couple thousand dollars or more. But, this isnt life-changing. Is it possible that this sell-off is a terrible mistake, and that by 2022 each coin will be worth a million on its own?

Its possible, especially with the crypto-cap coming around the corner. There are only so many coins to go around, and speculation suggests that Bitcoin and other markets are on the cusp of a massive and staggering breakthrough. What exists now is only the beginning, and the market is at a distinct and powerful crossroads.

2018s Cryptocurrency Marketplace

2018 BitCoin first quarter has been scary for people not in the immediate circle of knowledge. It basically means that a lot of doom and misery has spread throughout media. Bill Gates recently, and perhaps jokingly, said that cryptocurrency is super risky. In 2014, he said that it is better than currency due to not having to be in the same place. He was supported of cryptocurrency as a platform but admits its risks.

The media latched onto a narrative that cryptocurrency is dead and ran with it. This created a bit of a vacuum, including a huge sell-off. Bitcoin faced a whiplash 2017, with prices skyrocketing early in the year and values dropping out by the end.

Cryptocurrency results first quarter 2018 show a bad story, but likely a temporary one. Bitcoin is in the red. For some, it isnt looking good. There are a few reasons for the decline, and two, in particular, make the most sense. The first is government regulation, with some foreign bodies banning or restricting the coin from use. The other is the media, pushing this gloomy message for clicks and likes. Why have BitCoin prices dropped the first quarter of 2018? One of the biggest theories last week is that BitCoin price was driven down via a sale of large number of BitCoin by the bankruptcy custodian of Mt Gox.

The Future

Speculators are claiming that the market is a clear bear for 2018. But, things may soon start to settle down once again. By the middle of the year, it is likely the market will calm and return to normal after the amateurs by in and out and move on with their life.

The government restrictions are not new to Bitcoin, so their impact is not necessarily any more or less than they have been before. There will be dips, as have always been common in the cryptocurrency world. The introduction of other coins will shake values up. But, the media doom and gloom is only a small lens of the wrong narrative.

In the future, a single Bitcoin could be worth one million dollars. In the future, the same coin could be worth a penny at most. Both are possible. Bitcoin may also be replaced by another massive currency, but which one? There are about 30 reputable coin providers in the market now, not to mention the hundreds with a modicum of value that could see huge exposure with the right hand. Overall, the speculative environment of cryptocurrency is what makes it wonderful, enthralling, nerve-racking, and incredibly hard to decipher.

Who is Behind the Digital Currency Group?

The Digital Currency Group, or DCG, was officially launched by CEO Barry Silbert less than one week after he sold SecondMarket to NASDAQ. Silbert carefully chose investment partners who share his long-term commitment to cryptocurrency and so-called crypto-companies based on this emergent financial solution. Unlike many of its competing financial interests, the DCG is structured as a company rather than a fund, allowing them to continue making investments in Bitcoin startups and other relevant technological innovations.

A Strong Start

The DCG got off to a strong start, having announced almost immediately after its inception that it had raised money from a number of high-profile investors such as MasterCard, Bain Capital Ventures, and New York Life. Silbert already had a successful track record of entrepreneurship within the financial sector prior to founding the DCG, so while many of those currently involved in the group have never invested into digital currency and blockchain space before, there’s no reason to believe that this company will be any less successful than his first.

Mission Statement

The DCG’s mission, as stated by its CEO, is to accelerate the development of a financial system based on Bitcoin and blockchain technologies. Silbert’s decision to structure the DCG as a traditional company will give the DCG the flexibility to invest in and buy out other companies working within the financial sector and give it access to permanent capital, helping to support the group’s long-term mission.

As Silbert notes, creating a fund or, more likely, several different funds, would have led to having different stakeholders for each fund, making it more difficult for everyone involved to make decisions regarding business allocations and capital. Silbert intends to eventually take his company public, although he is quick to note that this is not a short-term plan.

Initial Subsidiaries

The company’s first wholly-owned subsidiaries included Genesis Global Trading, an existing over-the-counter trading firm for Bitcoin, and Grayscale Investments, an asset management firm responsible for managing the Bitcoin Investment Trust. The Bitcoin Investment Trust is an existing publicly traded fund designed to trade like an exchange-traded fund. The company also invested early in other companies across the world, including several in Japan, Argentina, and Kenya.

Early Expectations

Silbert reported that his nascent company had plans to make anywhere between 10 and 20 new investments in its first year and held a Bitcoin-focused conference in New York City less than a year after the company’s creation. This conference was designed to bring companies, investors, and the Wall Street community more generally together to talk about Bitcoin, but it certainly didn’t constitute the only foray Silbert’s company made early on into exploring the research, data, consulting, lending, and insurance issues surrounding cryptocurrencies.

Insurance Firm Investment

Investors like New York Life and Transamerica Ventures were drawn to the DCG thanks to the forward-thinking nature of these companies’ lead executives. Investors like these and other global insurance giants understand that Bitcoin technology has the potential to improve their underwriting processes and make it easier to onboard new customers. These insurance firms themselves aren’t the only ones to benefit from Bitcoin investment, though, as many of the early-stage companies within DCG’s network can benefit from working with insurance firms.

The choice to work with diverse investors speaks to Silbert and his company’s commitment to establishing a support network for his group of companies. The company has a dedicated director of community whose job is to connect investors and companies with each other for conferences and mutual aid.

Silbert set out to build the largest early-stage investment portfolio possible for digital currencies and blockchain ecosystems, and it’s clear by now that his company will live up to these grand plans. The DCG has continued to grow in recent years and expand its investments and services overseas, allowing it to create a global exchange alliance.

Ultimate Goals

Ultimately, Silbert’s goal is to foster a digital currency ecosystem that takes advantage of global standardization and cross-collaboration between industries and investors to make trading in Bitcoin easier and more secure. With so many great minds working on this project, the DCG is a company to watch. It’s clear that this company constitutes a driving force behind changes in the global financial climate pertaining to Bitcoin but also to cryptocurrencies and blockchain technologies more generally.

I follow BitCoin’s daily live videos on either FaceBook or YouTube. He’s the one that pointed me in the direction of researching this organization.

Why BitCoin Prices Have been Dropping?

One of my favorite channels is Crypt0 on YouTube. IN this video, he explains that the trustee(s) for Mt Gox have been selling off large quantities of BitCoins for the last few months, thus forcing the prices lower.

According to a recent article on CoinDesk, an related sites, Mt Gox sold off $406.6 million of BitCoin and BitCoin Cash via the Japanese trustee of the bankruptcy (Nobuaki Kobayashi). One might wonder why they didn’t sell it privately. Conspiracy theories may believe there was some plan to force the price down to force people out of the market, or to give other more time to get in, or yet even for some people to make a killing by shorting the market on the way down.

 

Review of BitCoinIRA and BitIRA – for moving my IRA to BitCoin

December 14, 2017

I thought this process was going to be an easy “no-brainer”. But after a call from their support, or perhaps better dubbed sales person, I learned about the hidden fees and “the rules”.

I started by filling out form onBitCoinIRA.com.One of their options was an “investment mix” where you theoretically split up your investment among the six coins they support: 1) BitCoin, 2) Ethereum, 3) Ripple, 4) LiteCoin, 5) BitCoin Cash, and 6) Ether Classic. But later, as you will see below, I learned this wouldn’t work.

This included downloading a PDF, having to sign it, then upload it. It was called a “Account Transfer”. I actually called them first, to ask a question about the beneficiary. The guy I spoke to was very American, very professional, and almost no wait time. I was trying to figure out if I could make my own estate the beneficiary, instead of a specific person or persons. He checked, and said if it was a trust, but I don’t have a formal trust yet. After I got my question answered about the beneficiary, I got the data for my beneficiary (SSN and date of birth) and completed the form.

After all that hassle and sending them the first form, THEN he called back to explain their fees and limits.

  1. There is a 15% origination fee 9,
  2. 1% fee when you liquidate/cashout,
  3. 5% trading fee,
  4. Custodial fees of $20/month and 0.07% of your balance from the custodian, which is Kingdom Trading.
  5. And a big kicker, there is a minimum of $10,000 in any one coin. He said this is because they use GenesisTrading.com. This totally blew my investment mix based on the amount of the IRA I would be transferring.

NOTE: When you submit and sign their PDF document, that doesn’t really kick off the process. They send you another form, which I think he called a “Transfer Document”. I’m not sure how it’s different than the one I already signed. But they give you a chance to absorb their fee structure, then tell them if you wish to continue or not.

A follow up question I will ask is about early withdrawals. Sounds like I would always have to keep a minimum of $10,000 with them.

So then, I decided to check out their competition. The first one I had already seen wasBitIra.com,. Minutes after filling out the form on their site, their rep called me. He was also very professional and helpful. They have a similar 15% origination fee, said custodian fee is about $300/year (pegged at entry amount), and they use Preferred Trust. I think there is one other competitor. The kicker there was they wanted a minimum of $20,000; and he checked if they could go lower, and the answer was yes, but I would have to pay the 15% fee instead of having it come out of my IRA.

I’ll keep you posted as I learn more and make my decision. The alternative is to cash out, pay the IRS penalty, and have more freedom with the money. Later the same day, that’s exactly what I did. I figured if I’m going to have pay another company a 15% origination fee, and high trading fees, and not have control over how I allocate my tokens, it’s better to pay the IRS penalty and have the freedom.

 

Free BitCoin Course – For Beginners

There were so many people asking me questions about BitCoin, Altcoins, and Cryptocurrency that I put together a this Free BitCoin Course, a short “mini” course at http://FreeBitCoinMiniCourse.com.

Most lessons can be done in 10-20 minutes. They include short summaries, and videos that I either created or those that I found on YouTube that best describe the topic.

Free BitCoin Course – The Lesson/Topics include:

  1. What is BitCoin? What is Blockchain?
  2. BitCoin Wallets
  3. Downsides to Bitcoin
  4. How to Make Money with BitCoin
  5. The BiCoins Wealth Club
  6. DayTrading with 1Broker
  7. How the world is changing (The big picture)
  8. On ramps – Buying your first Bitcoin or Cryptocurrency
  9. Documentaries
  10. Top 25 – Video Summaries of the Most Popular AltCoins (Cryptos).

Join Free Here:http://FreeBitCoinMiniCourse.com.