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Ripple - >>> It’s now easier than ever to buy ripple, but is it a sound investment?
Third-largest cryptocurrency enjoys strong performance this year
Dimitar Bogdanov
by Dimitar Bogdanov
Tuesday, 25 Jul 2017
http://invezz.com/news/forex/26595-Its-now-easier-than-ever-to-buy-ripple-but-is-it-a-sound-investment
It’s now easier than ever to buy ripple, but is it a sound investment?
San Francisco-based blockchain startup Ripple has grabbed investors’ attention lately, with its token XRP becoming available to a larger pool of investors and it distributed ledger technology gaining the backing of some major financial institutions. Due to a wider adoption on cryptocurrency exchanges, especially in Asia, it is now much easier for people to buy ripple (XRP). And while the token is still far less popular than bitcoin (BTC) and ethereum (ETH), it is one of the better alternatives to the current leaders in the crypto space.
Ripple’s aim is to provide decentralised transaction network for banks and financial institutions that is fast and scalable. According to the company’ website, the network can candle up to 1000 transactions per second, with payments settling in four seconds.
These features of ripple’s network have attracted the attention of some of the world’s largest banks. Ripple’s solution is already used by major players in the banking sector, such as Standard Chartered, Santander, UBS and UniCredit. In April the company announced the addition of 10 new customers to its global network, including MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com.
“The world’s largest banks have been the first to adopt Ripple’s technology, and the network effect from our customer base is accelerating,” Ripple CEO Brad Garlinghouse said at the time.
Earlier this month, the company also announced that the XRP Ledger ecosystem has expanded to 55 validator nodes, an increase of 120 percent since May.
Unlike competing cryptocurrencies, the majority of XRP is owned by one company – Ripple itself. The startup owns 61 percent of the 100 billion existing ripples, but earlier this year decided to put 55 billion XRP in a cryptographically-secured escrow account by the end of 2017 and release up to 1 billion into the market every month. With this move the company aimed to alleviate any concerns regarding supply manipulations. Currently, Ripple holds a total of 6,662,260,753 XRP, while 38,332,289,584 XRP are in circulation on the market.
Ripple revealed last week that the second quarter of this year was “one of the most significant quarters to date for XRP markets”, pointing to a sharp rise of the XRP price and the token’s wider adoption. The company said that the cryptocoin finished Q2 at $0.263, posting a 3977-percent price increase in the first six months of the year.
While the price has cooled down in the last month, ripple (XRP) has cemented itself as the third-largest digital currency on the market, behind bitcoin and ethereum. Meanwhile, recent announcements have indicated that the Ripple network continues to expand.
The cryptocurrency is now traded on 30 exchanges worldwide. In its Q2 report the company noted this wider adoption has boosted trading volume, and especially fiat-for-XRP volumes. The main driver of the increase was the increased activity on South Korean Exchanges.
According to Coinmarketcap, ripple is now the fourth digital currency in terms of trading volume, behind bitcoin, ethereum and litecoin.
Given ripple’s performance so far this year and the growing interest from businesses and investors, the cryptocurrency presents an interesting investment opportunity. In addition, its low price makes it much more affordable to individual investors.
The ripple price has fallen 11.1 percent in the past 24 hours, amid a decline in the broader cryptocurrency market. As of 14:02 BST, XRP was trading at $0.172, according to data from Coinmarketcap.
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Ethereum and GBTC Info from other board -
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=133265261
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=133272712
>>> Ethereum is a platform, Ether (which is what you buy) is a currency.
The Enterprise Ethereum Alliance is interested in ethereum as a platform and a service and technology. They aren't investing in it because of the currency, they like it because of what th e platform DOES, and what it is capable of doing.
I do think ether has potential and will grow in value long term, however there are forks of the platform (such as Augur), which have a more ambitious roadmap with a lot to promise (although if you ask bitcoin, being the first eans something). I do not think it is going to 10x by any means.
Litecoin, I believe, could easily produce very signifant gains in both the medium and long term.
That said, I own both. <<<
___________________________________________
>>> Yes and no. It's similar to Ripple (XRP) in that it is the "fuel" for running the network, but it doesn't necessarily mean Ether will be worth a bunch of money. It still isn't used to buy things, it is used as payment to machines for executing operations.
At its core, it is a development platform.
As far as a Bicoin fund, I would just buy BTC outright and place them in a hardware or paper wallet -- then again, I am comfortable with buying and selling cryptos. For people who aren't, it will be good.
I do not think it's needed though. Think about a Gold fund. You buy $100k worth of gold...where do you store it? How do you get it delivered? The Fund solves these problems. Cryptos have none of these problems because they are virtual. All you need is a $90 hardware wallet or a printer and some software and you are good to go. <<<
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It looks like the best way to trade the cryptocurrency sector at this point may be the Bitcoin Investment Trust (GBTC), which is a quasi-ETF that represents 1/10 of a Bitcoin. This trades on the OTC, so can be traded in a regular brokerage account.
The downside is that it trades at a huge 70% premium to the underlying Bitcoin price. This in itself is probably not a problem now, but will become one once a bonafide Bitcoin ETF is allowed to trade by the SEC. At that time the big premium on the GBTC will evaporate, but it may be quite a while before that happens.
On the plus side, with GBTC you don't have to set up one of those hack prone crypto accounts or digital 'wallets'. That seems like a big advantage, considering how often these account are cleaned out by hackers.
Here's more info on GBTC from a recent article (below).
Well, looks like cryptos are the new bio stocks, with the advantage that you don't need a PhD in molecular biology lol -
>>> 4. Investing through a brokerage firm.
https://www.thestreet.com/story/14229944/5/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
For investors wanting to avoid the risks and hassle of setting up digital wallets, they can invest in bitcoin indirectly through Bitcoin Investment Trust (GBTC) in the OTC market. GBTC is a bitcoin-based fund that acts like an ETF, whose shares can be bought and sold through traditional brokerage firms. Each share represents about one-tenth of a bitcoin. But the convenience comes at a steep price: The fund has been wildly popular, which has caused shares to soar to the point where a share is now priced about 73% higher than the value of the underlying bitcoin. (GBTC recently traded at $357, which values a single bitcoin at about $3,570. But Bitcoin recently traded at $2,060.88). Also, GBTC charges a 2% management fee on top of that.
The frothy premium may not be an immediate concern for shareholders, since GBTC is the only bitcoin ETF available. However, if the Winklevoss Brothers, famous for their controversial lawsuit over their role in Facebook's start, ever get their Winklevoss Bitcoin ETF approved, it could be a different ballgame, and GBTC values could plunge. (The SEC turned down the Winklevoss ETF earlier this year over lack of regulation, but agreed to reconsider it later). "As soon as there's more products, more liquidity and more choice, the premium will disappear," said Hayter. <<<
>>> How to Value Bitcoin as a Substitute for Gold
Fundstrat's Thomas Lee says bitcoin could be worth $12,000-to-$55,000 per unit by 2022.
By Crystal Kim
July 7, 2017
http://www.barrons.com/articles/how-to-value-bitcoin-as-a-substitute-for-gold-1499444159?mod=yahoobarrons&ru=yahoo&yptr=yahoo
Blockchain, the technology behind bitcoin, is expected to change the banking and asset management industry as we know it. As important as that technology is, investors also have to come to terms with the rise of cryptocurrencies like bitcoin and ethereum.
Bitcoin has risen 162% to around $2,537, according to Coindesk. Ethereum has climbed 3,265% to just above $250. Meanwhile gold is up only about 8% year-to-date to around $1,240. "We believe one of the drivers is cryptocurrencies are cannibalizing demand for gold," wrote Thomas Lee, Fundstrat's U.S. portfolio strategist, in a client note published today. So the firm created a framework for valuing bitcoin as a substitute for gold. The three drivers behind valuation are:
•Growth of U.S. MO (money supply, 6.5% annually since 1921
•Value of alternatives vs MO (554% since 1921, but 400% based on Fundstrat's model)
•Bitcoin share of alternatives (5% in Fundstrat's model, vs 0.7% today)
Based on that model, bitcoin could rise to an estimated $20,300 per unit by 2022. A sensitivity analysis suggests a range of value from $12,000-t0-$55,000. Lee said: "In other words, substantial upside exists in owning cryptocurrencies here." No kidding.
Now imagine what might happen if central banks starting buying crypto-currencies. Lee pointed out that central banks own about 18% of gold stock, a figure that has been rising gradually over the past decade. "We believe central banks would consider owning crypto-currencies if the aggregate value exceeded ~$500 billion (bitcoin is $42 billion currently)," said Lee. "In our view, this is a game changer, enhancing the legitimacy of the currency and likely accelerating the substitution for gold (by investors)."
Investors can buy bitcoin directly, mine it themselves, or buy over-the-counter shares of the Bitcoin Investment Trust (GBTC). However, be aware that GBTC trades at a substantial premium to its net asset value.
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>>> Enterprise Ethereum Alliance - members include Microsoft, IBM, Intel, Merck -
https://en.wikipedia.org/wiki/Ethereum
>>> Ethereum is being tested by enterprise software companies for various applications. Interested parties include Microsoft, IBM, JPMorgan Chase,[55][102] Deloitte,[103] R3,[72] Innovate UK (cross-border payments prototype).[104][105]
Enterprise Ethereum Alliance (EEA)[edit]
In March 2017, various blockchain start-ups, research groups, and Fortune 500 companies announced the creation of the Enterprise Ethereum Alliance (EEA)[106] — a nonprofit organization with over 116 enterprise members — including ConsenSys, Cornell University's research group, Toyota Research Institute, Samsung SDS, Microsoft, Intel, J.P. Morgan, Merck & Co., DTCC, Deloitte, Accenture, Banco Santander, BNY Mellon, ING, and National Bank of Canada.[107][108][109] The purpose of the EEA is to coordinate the engineering of an open-source standard and private "permissioned" version of the Ethereum blockchain that can address the common interests of enterprises in banking, management, consulting, automotive, pharmaceutical, health, technology, mobile, entertainment, and other industries, while working with developers from the Ethereum ecosystem. Certain members of the alliance have also indicated a desire to investigate and collaborate on hybrid architectures to potentially anchor private blockchains to the public Ethereum blockchain in the future, although concerns remain over the security, compliance, and regulations involved in bridging such permissioned and "permissionless" blockchains.[106][110][109]
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>>> Second Major Ethereum Hack In a Week Leads to $34 Million Theft
By Nathan Reiff
July 24, 2017
http://www.investopedia.com/news/second-major-ethereum-hack-week-leads-34-million-theft/
While cryptocurrencies like Bitcoin and Ethereum have enjoyed meteoric popularity over the past several months, there are still many potential investors who remain skeptical. And one of the reasons for this skepticism is the ongoing concern about cryptocurrency security. Now that a second major hack of Ethereum has taken place within the span of one week, those concerns may have more traction, although it certainly hasn't stopped many investors from shifting their attention to the digital money space.
Two High-Profile Hacks in Three Days
Ethereum suffered major losses because of two separate hacking incidents that occurred within three days of each other last week, according to a report by PC Gamer.
The second of the two robberies was the more substantial. It exploited a vulnerability in Parity, the digital wallet service popular among many Ethereum miners. Hackers stole about 153,000 Ether, the network's native currency, with a value of about $34 million. The hackers stole this sum from three different multi-signature Ethereum wallets.
Gavin Wood, founder of Parity, issued a critical security notice in response to the hacking event. "A vulnerability in Parity Wallet's variant of the standard multi-sig contract has been found," he explained.
Wood then urged all Parity users to "immediately move assets contained in the multi-sig wallet to a secure address." Simultaneously, hackers working to defend the network siphoned more than 377,000 additional Ether tokens to a safe space. The White Hat Group explained its actions in a post on Reddit, saying it would re-issue the funds back to owners once the vulnerability could be properly addressed.
CoinDash Exposes Another Entry Point for Hackers
The other hacking event, which occurred last week, exposes another point of concern with regard to crypto security. Hackers stole about $10.3 million in Ether from CoinDash, a popular exchange. In this case, the robbers may have simply replaced wallet addresses with a simple hack.
And yet, in spite of these and a number of other prominent thefts in recent months, cryptocurrencies seem to be showing no signs of slowing down in terms of growth.
The largest currencies, Bitcoin, Ethereum, and Ripple, have all made substantial gains so far in 2017, and the overall user base of cryptocurrencies worldwide is expanding at a significant pace. It could be that the risk of hacking and theft is simply not great enough in the minds of potential investors to convince them to stay away from a potentially lucrative investment.
PC Gamer suggests that the downfall of cryptocurrencies, if there is one at any time in the future, would more likely be because of losses in the values of those currencies than because of any major concerns over possible theft of assets.
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Heavy hitters backing Ethereum - >>> J.P. Morgan Chase is developing a blockchain, atop Ethereum. The system, dubbed "Quorum," is designed to toe the line between private and public in the realm of shuffling derivatives and payments. The idea is to satisfy regulators who need seamless access to financial goings-on, while protecting the privacy of parties that don’t wish to reveal their identities nor the details of their transactions to the general public.[111]
Royal Bank of Scotland has announced that it has built a Clearing and Settlement Mechanism (CSM) based on the Ethereum distributed ledger and smart contract platform <<<
https://en.wikipedia.org/wiki/Ethereum
Ethereum - >>> What is “the Flippening”?
June 13, 2017
http://blog.flippening.watch/what-is-the-flippening/
So what is this “flippening” everyone is talking about?
“The Flippening” refers to the possible future event when Ethereum overtakes Bitcoin to become the biggest, most valuable, and most important cryptocurrency.
Until recently, Bitcoin has held the top spot without any serious competition since its creation in 2009. As recently as February 24th, 2017, Bitcoin’s market capitalization represented 86.74% of the total market capitalization of all cryptocurrencies. Since then, even though its unit price has risen, Bitcoin’s market share has fallen precipitously and now stands well below 50% (check here for the most recent numbers). At the same time, other cryptocurrencies, especially Ethereum, have rapidly gained market share.
CoinMarketCap
There are several metrics that measure the usefulness, value, or importance of a cryptocurrency. But when most people talk about the “flippening” taking place, they are usually referring to Ethereum overtaking Bitcoin in market capitalization specifically.
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>>> How cryptocurrency ethereum looks set to overtake bitcoin — in one chart
MarketWatch
By Victor Reklaitis
June 14, 2017
http://www.marketwatch.com/story/how-cryptocurrency-ethereum-looks-set-to-overtake-bitcoin-in-one-chart-2017-06-14
Ethereum’s market cap closes in on bitcoin’s as fans watch for ‘The Flippening’
Ethereum appears poised to steal bitcoin’s crypto crown.
Just as Wall Street is paying more attention to bitcoin, a rival is increasingly threatening to become the top dog among cryptocurrencies.
Ethereum’s market capitalization is nearing bitcoin’s, as shown in the chart below from CoinMarketCap.
As of Wednesday, bitcoin BTCUSD, -5.49% (shown in orange on the chart) accounted for 39% of the combined market capitalization for all cryptocurrencies, down sharply from 87% on Feb. 25.
Blame the erosion on ethereum (shown in purple), which now makes up 31% of the total market cap, up from just 5% less than four months ago.
If ethereum’s market cap overtakes that of bitcoin, then “The Flippening” will have happened. That is the term that many people are using to refer to that shift, according to a post at the Flippening Watch blog.
Bitcoin’s market cap on Wednesday was around $45 billion and its price was just below $2,800, according to data from CoinDesk and CoinMarketCap. Ethereum’s market cap recently stood at $36 billion and its price at around $390.
By some metrics, ethereum already has eaten bitcoin’s lunch.
It has “almost five times as many nodes in its network as bitcoin, meaning more people are using their computers to support it,” a Motherboard report notes. Ethereum also has more transactions per day, the report adds.
Check out: Ethereum has soared — but is it ready for prime time?
But some traders remain skeptical of ethereum:
In the screenshot in the above tweet, ICO refers to an initial coin offering, a new way to raise money. One startup reportedly raised nearly $150 million this week via an ICO.
As their prices have soared, cryptocurrencies increasingly have attracted the attention of Wall Street’s analysts.
A Goldman Sachs technical analyst issued a bearish take on bitcoin earlier this week, leading the Zero Hedge financial blog to quip that “probably means that bitcoin is set to make new all-time highs shortly.”
Meanwhile, Morgan Stanley analysts have predicted that cryptocurrencies will not rally that much more unless they get “governmental acceptance,” including more regulations
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>>> 6.Guarding your bitcoins.
https://www.thestreet.com/story/14229944/7/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
For investors who buy bitcoins, it's critical they take steps to safeguard them. Bitcoins in exchange accounts are not FDIC or SIPC protected. Leaving bitcoins in a digital account on an exchange could be risky if the site crashed, went bankrupt or got hacked.
In 2014, Mt. Gox bitcoin exchange filed for bankruptcy after claiming it had been hacked and that thieves made off with hundreds of thousands of bitcoins. A trial began in Tokyo this week against the former head of Mt. Gox, Mark Karpeles, who faces charges of embezzlement and creating unauthorized records.
"Never keep a large dollar amount at a bitcoin/ethereum exchange," said Barski. "There are still high risks for hacks."
So, experts recommend investors move the bitcoin keys to a digital wallet on their computers, which involves installing a cryptocurrency wallet on their computer and making sure the computer is protected by anti-malware protection.
To be even safer, the investor could purchase "hardware wallets," such as Trezor wallet or Ledger Nano wallet, which are USB-sized devices that safeguard the bitcoin private keys offline. "If you follow these steps, you can sleep comfortably," said Barski, "Knowing that if an exchange is hacked or goes bankrupt, your funds will remain safe." <<<
>>> 5. Investing indirectly in Bitcoin.
https://www.thestreet.com/story/14229944/6/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
Investors can also cash in on the bitcoin craze indirectly by purchasing shares in companies that either invest in bitcoin or provide part of the underlying blockchain technology. The risk is that many are penny stocks. Examples include:
-First Bitcoin Capital Corp. (BITCF) develops digital cryptocurrencies and blockchain technologies. It also owns and operates various digital assets, such as cryptocurrency exchange CoinQX.com and bitcoin news site, iCoiNEWS.com.
-Connexus Corp. (CNXS) operates bitcoin ATMs.
-BTCS Inc. (BTCS) hosts an ecommerce marketplace, where people can buy merchandise using digital currencies, like Bitcoin and litecoin.
-Bitcoin Services (BTSC) , which offers both bitcoin escrow services, where it acts as a third party between a buyer and seller when doing business online, and bitcoin mining services, where it validates bitcoin transactions. It also develops and sells blockchain software.
- Nvidia Corp. (NVDA) and Advanced Micro Devices Inc. (AMD), which trade on Nasdaq, provide graphics processing chips to cryptocurrency miners.
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>>> 4. Investing through a brokerage firm.
https://www.thestreet.com/story/14229944/5/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
For investors wanting to avoid the risks and hassle of setting up digital wallets, they can invest in bitcoin indirectly through Bitcoin Investment Trust (GBTC) in the OTC market. GBTC is a bitcoin-based fund that acts like an ETF, whose shares can be bought and sold through traditional brokerage firms. Each share represents about one-tenth of a bitcoin. But the convenience comes at a steep price: The fund has been wildly popular, which has caused shares to soar to the point where a share is now priced about 73% higher than the value of the underlying bitcoin. (GBTC recently traded at $357, which values a single bitcoin at about $3,570. But Bitcoin recently traded at $2,060.88). Also, GBTC charges a 2% management fee on top of that.
The frothy premium may not be an immediate concern for shareholders, since GBTC is the only bitcoin ETF available. However, if the Winklevoss Brothers, famous for their controversial lawsuit over their role in Facebook's start, ever get their Winklevoss Bitcoin ETF approved, it could be a different ballgame, and GBTC values could plunge. (The SEC turned down the Winklevoss ETF earlier this year over lack of regulation, but agreed to reconsider it later). "As soon as there's more products, more liquidity and more choice, the premium will disappear," said Hayter. <<<
>>> 3. Buying and selling from local sellers directly.
https://www.thestreet.com/story/14229944/4/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
For investors who prefer anonymity or don't want to provide banking information, they can purchase bitcoins directly from a local seller - face-to-face. You can find such sellers through LocalBitcoins.com, where transactions are arranged, prices negotiated and an escrow service provides protection for both parties. For those choosing this method, it's best to meet in public places. There are also bitcoin groups that meet through meetup.com for local buyers and sellers. <<<
>>> 2. Buying bitcoins at an ATM.
https://www.thestreet.com/story/14229944/3/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
People can buy bitcoins through special ATM machines. Bitcoin Depot, for example, offers ATM machines in six states - Georgia, Florida, Tennessee, Texas, Massachusetts and Alabama. The investor signs up for an account with Airbitz bitcoin wallet, deposits cash into the ATM, scans a QR code with a special scanner attached to the ATM, and voila - the bitcoins will be in the Airbitz account. However, the ATM method often comes with hefty fees - sometimes in excess of 20%. "If you're a serious investor, that's too much of a cut in fees to make it viable," said Barski. <<<
>>> 1.Buying bitcoins through cryptocurrency exchanges.
https://www.thestreet.com/story/14229944/2/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html
Bitcoins can be purchased directly through cryptocurrency exchanges, such as Coinbase, GDAX, Kraken, and Gemini. (Gemini was founded by the Winklevoss twins). People sign up for an account online and then buy the bitcoins through a bank account transfer, credit card, wire transfer, or, in come cases, even a PayPal account. (Some don't accept credit cards because the transaction can be reversed with a call to a credit card company). On Coinbase, a person can withdraw money by transferring cash to a bank account or PayPal account. Trading and withdrawal fees vary from exchange to exchange, so it's best to shop around. Keys to the bitcoins are stored in a digital wallet.
Ether can be purchased on such exchanges as Coinbase and GDAX.
>>> Bitcoin's Humongous Returns Are Luring Mainstream Investors: Here's What You Need to Know
Janet Morrissey
?
Jul 17, 2017 2:05
https://www.thestreet.com/story/14229944/1/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
Bitcoin mania is in full swing in 2017.
The cryptocurrency is no longer that quirky, risky, cyber gizmo that only tech geeks, Millennials and people on the Dark Web obsess over. No, it's starting to become - dare we say - mainstream, where investors are now actively looking at bitcoin and other cryptocurrencies as key additions to a diversified portfolio. Even the most risk-averse investor is having a tough time ignoring the sector's humongous returns.
Bitcoin has been on a monster run this year, with its value surging three-fold to a high of $3,018.54 in June from $968.23 at the end of 2016, according to Coindesk. Although it's pulled back since then, recently changing hands at $2,060.88, it's still up about 210% year-to-date.
Its younger competitor, Ethereum, has been on an even bigger blockbuster ride, with its value soaring 50-fold to a high of $415.31 in June from $7.31 at the end of 2016. It too has fallen from its high, recently trading at $171, but is still up more than 2300% this year.
So, why and how did bitcoin enter the mainstream psyche?
Maybe it was the surge in "ransomware" attacks, where even Granny was asked to pay up in bitcoins to unlock her computer from malicious malware. Or maybe it was the decision by countries, such as Japan and Australia, to recognize bitcoin as legal tender. Or maybe it was a growing number of investors choosing bitcoin over gold to offset the weak dollar. Any and all of these issues helped boost demand - and therefore, its value.
"It's the herd mentality that occurs when you have rising markets and the fear of missing out," said Charlie Hayter, chief executive of CryptoCompare, a research site that tracks the industry. "You have people acting in a mania-like fashion - jumping on the bandwagon because it has gone up and hope it's going to go up more."
The really "smart money" got in a year ago, said Hayter. But, for now, it's still largely "the more adventurous in the financial world" who are putting it into their portfolios, he said.
Many experts believe Bitcoin is here to stay, and its run-up will continue, although not without setbacks and volatility along the way.
For example, many experts expect considerable volatility in August and September related to software upgrades to the Bitcoin technology aimed at increasing transaction capacity. Some bitcoin miners oppose the changes. And if developers and miners can't agree on the format, there could be a split that could result in two separate currencies, which could turn the bitcoin market upside down. "It's unknown right now and hard to predict what's going to happen," said Conrad Barski, a software developer and co-author of the book Bitcoin For The Befuddled.
The rise in initial coin offerings, where new digital currencies are introduced, are also pressuring prices.
Then there's technical issues. A surge in trading could lead to bottlenecks and even flash crashes on the exchanges that could cause cryptocurrencies to plummet. In a flash crash last month, one exchange reported the price of ether plunging to a low of 10 cents from more than $300 a few minutes earlier, before recovering.
Still, Thomas Lee, strategist and managing partner at Fundstrat Global Advisors LLC, is bullish on bitcoin's long-term outlook. In a report earlier this month, he predicted Bitcoin could be worth between $20,000 and $55,000 a unit by 2022.
"The technology for bitcoin and ethereum is extremely promising and I think it will fundamentally be a part of society in five or ten years," said Barski, who owns both bitcoins and ethereum.
The growing mainstream popularity of bitcoin is a far cry from the "Silk Road" days of 2011, when bitcoin was viewed as a shady tool used by drug-dealers and other sketchy characters on the Dark Web to buy and sell illicit products and services anonymously. (The Silk Road site was shut down in 2013 amid an FBI probe, and its young founder, Ross Ulbricht, was sentenced to life in prison in 2015).
Bitcoin's image has since taken a 180-degree turn. How far into mainstream America has it gone? Well, when Fed Chairwoman Janet Yellen was testifying before Congress this week, two grinning bitcoin fans sat behind her, holding up a yellow legal pad with the words "buy bitcoin" written on it. Their photobombing prank made headlines across the country.
For those interested in purchasing bitcoins and other cryptocurrencies, here's a rundown on how and where to buy them directly as well as alternative ways to cash in on the bitcoin craze.
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Name | Symbol | % Assets |
---|---|---|
GMO internet Inc | 9449 | 5.13% |
Square Inc A | SQ | 4.61% |
Z Holdings Corp | 4689 | 4.18% |
Galaxy Digital Holdings Ltd | GLXY | 3.92% |
Intercontinental Exchange Inc | ICE | 3.44% |
Digital Garage Inc | 4819 | 3.39% |
Kakao Corp | 035720.KS | 3.38% |
DocuSign Inc | DOCU | 3.34% |
LINE Corp ADR | LN | 3.26% |
SBI Holdings Inc | 8473 | 3.23% |
Name | Symbol | % Assets |
---|---|---|
Overstock.com Inc | OSTK | 5.47% |
Square Inc A | SQ | 3.07% |
SBI Holdings Inc | 8473 | 2.20% |
DocuSign Inc | DOCU | 2.15% |
GMO internet Inc | 9449 | 2.14% |
PayPal Holdings Inc | PYPL | 1.91% |
SAP SE ADR | SAP.DE | 1.88% |
JD.com Inc ADR | JD | 1.86% |
NVIDIA Corp | NVDA | 1.84% |
OneConnect Financial Technology Co Ltd ADR | OCFT | 1.81% |
Name | Symbol | % Assets |
---|---|---|
Xilinx Inc | XLNX | 1.77% |
Alibaba Group Holding Ltd ADR | BABA | 1.68% |
Infosys Ltd ADR | INFY.BO | 1.67% |
Tata Consultancy Services Ltd | TCS.BO | 1.67% |
Micron Technology Inc | MU | 1.65% |
Baidu Inc ADR | BIDU | 1.64% |
JD.com Inc ADR | JD | 1.61% |
Cognizant Technology Solutions Corp A | CTSH | 1.60% |
Taiwan Semiconductor Manufacturing Co Ltd ADR | TSM.TW | 1.57% |
Texas Instruments Inc | TXN | 1.55% |
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