Friday, 16 November, 2018

Bitcoin Hits Another Record -- Bubble or Bargain?

Bitcoin's rally is back price zooms above $12,000 Dan Kitwood Getty Images
Nellie Chapman | 06 December, 2017, 11:23

We can obtain bitcoin primarily in three ways, which are buying on an exchange, accepting them for goods and services, and mining new ones.

What you need to know is that due to the current high price of Bitcoin, the investment is flawless for large institutional investors and traders.

Until a market correction occurs, however, the Bitcoin bubble is rolling along in an odd fashion to the quantitatively driven stock market itself: until proven otherwise, the market is headed higher.

This does not mean that Bitcoin has now won the cryptocurrency battle and will take over all other currency.

Barclay wrote: "The UK government is now negotiating amendments to the anti-money laundering directive that will bring virtual currency exchange platforms and custodian wallet providers into anti-money laundering and counter-terrorist financing regulation".

So, we will have a market with more stable and efficient price movement than Bitcoin has ever had before, and we will have more investors attracted to Bitcoin than there ever has been before.

Sputnik: One of the main factors impacting Bitcoin is speculation. A lifetime Bitcoin cloud mining contract enables the Company to earn unlimited Bitcoins without bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.

As noted by HowStuffWorks, "Bitcoin is an invisible digital currency (with no physical backing) that can be sent from one internet user to another".

The Cboe contact will be priced off of an auction on the Gemini cryptocurrency exchange, while CME will derive its price from the CME CF Bitcoin Reference Rate, which uses four exchanges: Kraken, itBit, GDAX and Bitstamp. Breakaways like Bitcoin Gold and Bitcoin Cash have proved hugely controversial due to their potential to dilute the brand. Transaction volume is an important indicator that signifies investor interest - short term and long term.

Even though Bitcoin has been the trailblazer among cryptocurrencies, it is hardly alone among them. As an investor, it is highly advised to be reactive to market news.

But what Bitcoin has more of than any of these other cryptocurrencies is brand recognition.

If you look at a chart of Bitcoin's market share since it was first launched, you'll see years spent hovering between 80% and 90% market dominance, then a sudden extreme drop-off in the first few months of 2017. Read here how bitcoins became bigger than the New Zealand economy.

At the same time, cryptocurrency's unstoppable march into the financial mainstream has seen projects like Ethereum and IOTA accumulate a lot more media coverage. Many say that the digital currency could be worth $25,000 or even more by the end of 2018, and two notable experts have forecast a $1 million price tag by 2020. Roach cited bitcoin's lack of intrinsic economic value, and he has a point. If you are just starting out, I recommend you invest in Bitcoin Cash, Bitcoin Gold, Dash, Litecoin or Ethereum.