Renowned investor and one of the richest persons on planet Warren Buffett continues his bearish point of view toward bitcoin and other cryptos.
In an interview on CNBC, Buffett was asked about JPMorgan Chase CEO Jamie Dimon’s retreating take on bitcoin, after the latter expressed his regret about calling bitcoin ‘fraud’ a year ago.
Questioned if he too would reconsider his current comments on bitcoin – Buffett called bitcoin an “air bubble” following Dimon’s remarks a year ago – Buffet stated:
“As far as digital forms of money, for the most part, I can almost say with assurance that they will come to a bad ending.”
While predicting the downfall of digital currencies, Buffett went on to assert he’d bet on “each one of the cryptocurrencies” falling over the next five years.”
Furthermore, Buffett stated he wouldn’t take a negative position by exchanging bitcoin future contracts, expressing there’s “no reason” to do as such. “Why on earth should I take a long or short position of something I don’t know anything about?” He jested, confessing to knowing almost nothing about cryptographic forms of money.
“I have 11 schools this coming Friday [and] the inquiries will be on bitcoin, and I won’t know the appropriate answers,” Buffett included, preparing everyone else for more soundbites on digital forms of money this week.
Buffett’s interpretation of digital currencies, particularly bitcoin, is like another long-term bitcoin bear in JPMorgan’s Jamie Dimon. In September 2017, Dimon notoriously said bitcoin was a “cheat”. “It’s worse than tulip bulbs,” Dimon proceeded in the same breath, adding “somebody will get killed.” The Wall Street investor additionally undermined to fire workers involved in crypto money trading, calling them “inept” if they were to do so.
Dimon keeps on being a non-believer, he revealed in comments this week, but went on to state about that ‘fraud’ proclamation: “I regret making them.”
A lot of people today, looking at the progress and boom of bitcoin want to invest and buy bitcoin. But bitcoin is not a company or a stock. So, what do all these people mean by investing or buying Bitcoin? Bitcoin is a currency. How do you want to invest in a currency? If it meant appreciating the value or trading it, we need to have a closer look at the insight first.
Buying and holding
Buying Bitcoin in hope that you will avail the opportunity cost or the value will appreciate, is known as ‘Hodling’. If this is the intention then you need to do your homework yourself beforehand. Study the nature and behavior of the currency. Study and observe the reasons it fluctuates and reacts according to the changing socio-economic natures around the world. Few points to account for;
It is a risky task to perform. Always risk the amount that you are okay loosing too. The tables are not always on your side.
Always transfer currency to the personal wallet. Never leave it on the exchange. It may result in scam or fraud.
Always choose reputable exchangers.
Use the method of cost averaging to buy Bitcoins.
If your aim is trading than it means you are an active participant in buying and selling the currency. You buy the cryptocurrency at lower rates and sell when the rates go up. Trading gives reward only through knowledge and practice.
Investing in Mining
If you are interested in Bitcoin mining and needs to invest in equipment to mine more Bitcoins, it’s not that easy of a task too. There is a lot of scams included in this act too. You may come across complete scams eating away all your currency. Or you may end up in bad investment companies by paying the sites for more coins. It’s basically all surrounded by risks and risks.
Investing bitcoin companies
If a company claims to double to your coins or give the reward that is too good to be true then maybe it is not true. These companies are mostly scams or HYIPS (High Yield Investment Programs). These sites promise untrue rewards and start by creating a referral program or a big buzz around on the site. Entertaining a few startups for a few months, these companies will vanish in the air in no time. There will be no compensation and people will be left crying over the lost bargain. You cannot trust a site fully to say it legit or trustworthy to the fullest.
Is it late to buy bitcoin?
The answer to this is not that simple yet not so complicated too. It totally depends on the understanding and knowledge of the currency. A decentralized, peer to peer electronic currency, controlled by no one but just by the consumer, can be so unreliable to put the bid on. The important is to know how to invest rather than thinking whether to invest or not. The only way out is to know the currency. To understand the knowledge and nature of the currency, its fluctuations and variations are all that counts to invest and make reward out of that investment.
35-year-old Michael Richo of Wallingford, Connecticut, finally confessed to stealing $365,000 in Bitcoin in Hartford Federal Court on Tuesday. According to a release from the US Department of Justice, through a phishing scheme, he posted malicious links programmed to appear as a replica of very popular dark market websites.
Richo accepted that he stole more than 10,000 usernames and passwords and used this data to supervise the bitcoin balance and accounts of victims. He then sold his victims’ assets on Bitcoin exchange platforms for US dollars.
He was previously arrested last October on charges of wire fraud, identity theft, and computer fraud. Eventually, he gave in and was pleaded guilty and is scheduled to be sentenced in September.
The charges are meant to carry a maximum sentence of 30 years of imprisonment.
Bitcoin is basically an anonymous, centralized digital currency. So, theoretically, it was built to be the untraceable version of cash. Not money but cash. The idea of having a digital unhackable and invulnerable decentralized currency got so well liked by people that they started treating it more like a commodity than the currency. Just like gold, People started investing and hodling (the typical term of holding coins till they generate profit) the coins. It soon turned out to be an investment vehicle and the basic idea of it being a digital currency got dragged down the tunnel somewhat.
So, yeah it is basically both a currency and a commodity. Yet untraceable! Sounds like a win-win?
Bitcoin is a secure and decentralized digital currency. It’s also a trad-able financial asset like bonds and stocks. Think if you want to pay or transfer another person a hundred dollar. What you do is you transfer your money to that other person. But in reality, what actually you are doing is asking a third commodity to deduct the cash from your account and transfer it to that person’s account. Bitcoin eliminates this interference of the third or fourth entity. It establishes this direct transfer link between you and the other person.
Unlike other monetary and economic affairs, Bitcoin is not regulated by any financial body or the government entity. Unlike stock market and shares, there is no fundamental rule or practice that can predict or determine the future value of the currency. Due to its incredible price volatile nature, the transactions or investment in the currency can be extremely complicated.
Why Criminals like Bitcoin?
Bitcoin is a totally secured and anonymous network. Anybody can come up and make an account and start the transactions. It requires literally no name, address or any else personal information. This encrypted platform generates a unique user ID, wallet IDs to the operator. During the transaction, only that specific ID will be visible and displayed to the viewer.
Due to this feature of the Bitcoin structure, making all the transactions complete anonymously, a lot of criminals were attracted. They used this platform to hide their identity and their transactions to practice illegal and unauthorized dealings.
With the ability to buy or sell anything without your name ever being revealed, a huge set up of the black market started running in around 2011. Silk Bank became an online transaction hub for all these illegal activities using Bitcoin. FBI broke the phenomena resting that these Bitcoins were untraceable. They were traced and Silk Bank was shut down. All the Bitcoins were subsequently acquired by the FBI.
21 Million… Ever!
One of the most amusing and interesting things about Bitcoins is that there are only 21,000 Bitcoins to be mined. Ever!! Yes, the total amount of these bitcoins will never exceed this amount no matter what. These coins are generated through a process called ‘mining’. Around 17 million of these coins have been generated till now. These coins are in circulation around the world balancing the network. This means, only 5 million of these coins are left to be mined to reach the limited threshold.
Generally, there is a new winner every 10 minutes, winning about 12.5 coins every time. This reward of 12.5 coins is halved every year too. So that means, in about 2140 we will be able to mine all these 21 million coins once in for all. Every existing Bitcoin is created using this same method. Anyone can mine these coins, provided with suitable supporting systems.
Merchants and consumers are slowly accepting and becoming comfortable with this digital currency. So, will this sum of 21,000 million enough bearing the collective economy pressure someday?
A bitcoin is divisible up to 8 decimal parts. Being deflationary in nature, if the market rises on a continues basis making its value to trillions, there will be an adequate amount resting with every coin in circulation.
Whether you’re entering into the Bitcoin community for the first time, or are a long-time stan of the digital currency, you’ll identify there are several platforms that tend to stand out and provide the best information on the digital world.
Below is a list of top bitcoin blogs that we found incredibly composed and sufficiently detailed.
The CryptoCoins News covers all cryptocurrency related or particularly, Bitcoin related topics. They produce well-composed articles explaining the trends, price movements, version updates regarding Bitcoin and other digital currencies.
CoinDesk is one of the best platforms for news, prices, and information on Bitcoin, blockchain technology, and other digital currencies. In my opinion, this site has got everything. They’re known to cover all trends, price movements, technologies, companies and people in the bitcoin and digital currency world.
The Cointelegraph brings you the latest news, analysis, and predictions of Bitcoin and the blockchain technology. CoinTelegraph stands out from all its competitors, with custom art attached with every article they post. Be sure to bookmark this page.
NEWSBTC – Bitcoin News, Price, Analysis
NewsBTC is a Bitcoin news service that deals with cryptocurrency news, technical analysis and forecasts for Bitcoin and many other digital currencies. Users looking for daily price analysis and latest Bitcoin headlines should definitely have this site in their favorites.
Reddit – Bitcoin
It’s a community on the Reddit platform that is dedicated to Bitcoin. Users from around the world come together to have discussions on the “internet of money” and help educate newbies as well.
This is the official blog of Bitcoin. The site perfectly outlines all one needs to know about Bitcoin and its functionalities. It’s even got a list of words essential in the Bitcoin vocabulary. Fresh content is added every single day, the blog part of the website continues to attract a lot of eyeballs.
99 Bitcoins is a site for all things Bitcoin, from guides on buying bitcoins to mining and wallet reviews, it’s one of the best. They deliver well-detailed and researched articles and news, proving their dedication to the
Blockchain.info is both a Bitcoin wallet and blog. How great is that? Not only do you get to secure your bitcoins but you can browse through news as well every time you log in to check your balance.
The Coinbase Blog
Coinbase is an exchange platform as well as a blog. It provides data on the most recently mined blocks in the Bitcoin blockchain. A great site to get bitcoins with a debit card, and multiple online wallets for your digital currency.
Bitcoinist provides up-to-date news and insightful analysis on everything Bitcoin. It’s a highly trusted and well-known source dedicated to providing legit content for the Bitcoin technology.