Hedge Funds Are Quietly Investing in Bitcoin

Hedge Funds Are Quietly Investing in Bitcoin

Hedge Funds Are Quietly Investing in Bitcoin

Bitcoin’s price has gained over 180 percent this year, while hedge funds have only returned 3.5 percent on average. Most hedge fund managers have stayed away from bitcoin. However, the few that have included it are significantly outperforming their peers.

Average Hedge Funds Return 3.5% This Year

Hedge fundsHedge Funds Are Quietly Investing in Bitcoin are investment funds whose clients are accredited or institutional investors. They are less regulated than mutual funds since they are not subject to strict rules designed to protect investors. Some of them are not even required to register or file public reports with financial regulators.

Investments in hedge funds are only restricted by each fund’s mandate. They can effectively be anything including land, real estate and currencies, as long as they seek to maximize investors’ returns while reducing risks.

The comprehensive overall returns of hedge funds are measured by the hedge fund absolute return index (HFRX), which is representative of all hedge fund strategies. Hedge Fund Research (HFR), which provides data on more than 150 hedge fund indices, is the industry’s leading provider of hedge fund index data. According to HFR, the HFRI Weighted Composite Index only returned 0.46% in May and 3.5% year-to-date. In comparison, the S&P500 total return was 1.16% in May and 9.61% year-to-date.

Bitcoin Helps Hedge Funds’ Bottom Line

HFR’s data reveals that most hedge fund strategies underperformed the market both in May and year-to-date, CNBC reported. The index provider noted that technology and currencies were the only two strategies that performed well in both time periods, adding that:

The FX funds did well because of exposure to digital currencies like bitcoin.

The hedge funds that do invest in bitcoin currently do not have large positions. The best performing hedge fund index in May was the HFRI Macro Currency Index which gained 3.49% in the month and 8.22% year-to-date.

“In addition to contributions from Euro, Swiss Franc, New Zealand Dollar and Korean Won, the Currency Index also had strong contributions from exposure to digital currencies,” according to the HFR report.

Why Don’t More Hedge Funds Invest in Bitcoin?

“Many hedge funds are still very reluctant to dip a toe into the asset class,” CNBC recently reported. One hedge fund veteran, with 16 years of experience, told the news outlet:

To be honest, I just don’t know enough about it.

The reasons hedge funds are reluctant to invest in bitcoin “really boils down to concerns over volatility, security and perception,” Louis Gargour, the founder of asset manager LNG Capital, told the publication.

He listed three concerns. Firstly, “bitcoin’s extreme volatility doesn’t sit well with managers working on a risk-adjusted return basis.” Secondly, fund managers are concerned with the digital currency being hacked or stolen. Lastly, “there’s a perception that bitcoin remains a niche, retail investment that does not yet demonstrate sufficient quality to be seriously considered for many reputable institutions,” he explained.

However, as bitcoin continues to outperform other asset classes, more hedge fund managers may start following their peers and invest in the digital currency. At press time, Bitstamp shows that bitcoin has gained over 180% so far this year and over 70% in May.

By Kevin Helms

 

David Ogden
Entrepreneur

Alan Zibluk Markethive Founding Member

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Bitcoin Break $3,000 Do Not Miss This

The price of bitcoin topped $3,000 for the first time in history today, according to the CoinDesk Bitcoin Price Index (BPI).

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After spending much of the last week seeking direction in the $2,700 to $2,900-range, the average price of bitcoin across major international exchanges edged up over this threshold finally at roughly 17:00 UTC.

The new record comes at a time when alternative digital assets are seeing robust inflows, with ethereum's ether token setting a new all-time high of more than $300 today as well.

Indeed, analysts spoke to the ongoing broadening of the cryptocurrency market as a tide that is benefitting bitcoin.

"The inflows into 'alts' are greater than those into bitcoin. In other words, bitcoin is growing at a very nice pace, but non-bitcoin cryptocurrencies are growing even faster," cryptocurrency hedge fund manager Tim Enneking told CoinDesk.

Jehan Chu, managing partner at cryptocurrency fund Jen Advisors, agreed, noting that bitcoin is likely benefitting from new investor interest and the surging interest of "cryptos like ether".

Still, Arthur Hayes, founder of Hong Kong-based digital currency exchange BitMEX, stated that bitcoin is still the "most talked-about cryptocurrency", even as returns become more substantial in other areas of the market.

Hayes told CoinDesk:

"As investors marvel at bitcoin's historical returns and the returns of altcoins, their natural first purchase is bitcoin. Bitcoin has under performed other coins this year, it is now playing catchup."

Investor Sean Walsh largely agreed, pointing to bitcoin's growing price as a sign of its place in the market as the first stop on a road to other assets.

"Bitcoin still seems like the dominant gateway to [alternative digital assets]. So, many first purchase bitcoin in order to then trade their bitcoin for altcoins," he noted.

The development coincides with signs that the cryptocurrency market is maturing to support new inflows and increasing interest.

As noted by CoinDesk research analyst Alex Sunnarborg today, the cryptocurrency exchange market has never been more globally diverse or buoyed by such an array of possible inflows.

Such tailwinds have combined in recent weeks to bring new investor attention to bitcoin, with expectations for bitcoin's growth becoming more and more exuberant. Danish investment firm Saxo Bank went so far as to publish a forecasting report in which it placed the possible value of bitcoin at $100,000 in the next 10 years.

Chris Corey 

CMO Markethive Inc

Charts on mobile device via Shutterstock

Alan Zibluk Markethive Founding Member

Bitcoin Leads Cryptocurrencies All-Time Highs Across Board, Scaling Remains Issue

Bitcoin Leads Cryptocurrencies
All-Time Highs Across Board, Scaling Remains Issue

    

Cryptocurrencies across the board have surged

in the past 24 hours to see many reach new all-time highs. The unprecedented rise, which will like fuel speculation of bubble-like behavior, saw Bitcoin $2,400, Ethereum breaks $200 and Litecoin challenge previous highs. The top 10 cryptocurrencies all posted gains in the run-up to press time Wednesday according to data from Coinmarketcap. Further down the charts, other huge movers came out, including a 54 percent rise for Stratis and 68 percent for the Lisk Foundation’s LSK token. At the same time, it is becoming more and more difficult to determine the underlying cause for the continued market buoyancy in both Bitcoin and altcoins.

Talk of a final SegWit deal for Bitcoin may have fueled its rise, yet with details have yet to be ironed out, talk is turning to U-turns from certain members of a group originally plugged by Barry Silbert as agreeing to implement SegWit by September. SegWit is the major preoccupation of the Bitcoin community on social media meanwhile, with price celebrations eschewed in favor of debate about the strength of Silbert’s plan and likely saboteurs. Price-wise, even commentators such as Vinny Lingham have implied the next significant barrier will not be until Bitcoin is within striking distance of $5,000.

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Bitcoin.

Alan Zibluk Markethive Founding Member

Not Right Time to Regulate Bitcoin: American Institute For Economic Research

Not Right Time to Regulate Bitcoin: American Institute For Economic Research

    

“Now Is Not the Right Time to Regulate Bitcoin”

The American Institute For Economic Research (AIER) senior research fellow Max Gulker argued in a recent column entitled “Now Is Not the Right Time to Regulate Bitcoin” that it is not a practical approach towards technological innovation to overregulate Bitcoin and digital currencies at the moment. Bitcoin and other cryptocurrencies such as Ethereum, Ripple, Litecoin, Ethereum Classic and NEM are all at its early stage in development. Bitcoin is yet to deal with its scaling issues that have substantially increased transaction fees for users. Bitcoin fee estimation service providers including the 21 Inc Bitcoin Fees are recommending users a $2 fee or a 420 satoshis per byte fee to have transactions verified and confirmed by miners relatively fast.

Ethereum and other cryptocurrencies and Blockchain networks are also dealing with their own scaling issues and developing infrastructures for their growing user base and clientele. Ethereum and Ripple, in particular, are in partnership with some of the world’s largest financial institutions and conglomerates to utilize smart contracts to settle transactions in an autonomous, transparent and secure manner. Hence, at this critical juncture, it would be significantly impractical for governments to step in and overregulate the cryptocurrency sector. Minimal and efficient regulatory frameworks have helped the global cryptocurrency market to mature. For instance, Japan’s legalization of Bitcoin led to an explosive growth in demand for Bitcoin and other cryptocurrencies like Ripple and NEM.

Regulatory frameworks damaging to startups

However, Gulker explained that regulatory frameworks such as New York’s BitLicense can be damaging to startups both financially and in the technical sense. As regulatory frameworks like the NY BitLicense require startups to pay a large licensing fee and keep tight records of their users, they create difficult ecosystems for both small and large-scale startups. Even startups that have millions of users and that have secured millions of early-stage funding such as Shapeshift have suspended services in New York due to impractical regulations. Emphasizing the damage over-regulation from governments can inflict on startups and the global cryptocurrency industry,

Gulker wrote:

”Cryptocurrencies are still in a very early period of innovation and adoption. It would be a shame for a disproportionate amount of that innovative effort to go toward satisfying regulators’ demands rather than users’ wants and needs. The true risk lies in over-regulating cryptocurrencies now.”

Ultimately, Gulker noted that governments should take a wait-and-see approach instead and implement the practical yet minimal regulation on the Bitcoin and cryptocurrency industry. When the technology, market and industry start to evolve, governments can step in to regulate the market for general consumers and investors. “Those who believe in the benevolent power of such regulation should remember the inevitable rent-seeking behavior to which it leads, where businesses lobby government for favorable regulation. So it might be best for regulators to take a wait-and-see approach,” added Gulker.

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Bitcoin.

Alan Zibluk Markethive Founding Member

Should Tax on Bitcoin Be Eliminated? The Case of South Africa

Should Tax on Bitcoin Be Eliminated? The Case of South Africa

    

One of the most widely utilized trading platforms

Bitcoin exchanges in South Africa including Luno, one of the most widely utilized trading platforms in the country, stated that Bitcoin earnings are taxable in South Africa. When trading, the exchange suggested users consult registered tax professionals to ensure that they are compliant with South African regulations.

Should the tax on Bitcoin be eliminated?

Most countries that have fully adopted and regulated Bitcoin such as Japan have eliminated the tax on Bitcoin trading. On April 1, Japan officially declared Bitcoin’s exemption from consumption tax and eliminated the possibility of double taxation on trading. Recently, the Australian government also exempted Bitcoin trading from goods and services tax (GST). “The Government has released a consultation paper on changing the GST treatment of digital currencies. This change will ensure that consumers are no longer ‘double taxed’ when using digital currencies to buy goods and services already subject to GST,” read the 2016 — 17 Budget Report of the Australian government.

In South Africa, however, Bitcoin trading is subjected to general principles of South African tax law. The South African Revenue Service stated that transactions or speculation in Bitcoin are subject to tax and should be taxed accordingly. The government institution further emphasized that it is the responsibility of both citizens and residents of South Africa to report relevant details to the South African Revenue Service. Former BitX Product Design Director and Blockchain investor Simon Dingle also stated that Bitcoin trading in South Africa could trigger a capital gains event and encouraged traders and investors to consult tax professionals before trading on South African exchanges.

“It may trigger a capital gains event, or could qualify as income for active traders. All assets are treated equally in terms of tax,” said Dingle. More to that, income received in Bitcoin and other digital currencies are taxed as conventional income tax. It is still unknown whether double taxation applies and, as a result, if users are subject to both income tax and capital gains tax. Additionally, Luno Head of Growth Werner van Rooyen stated that various factors could impact taxation on Bitcoin transactions and trading depending on the situation of users.

Rooyen stated:

”There are various factors that could impact taxes an individual owes to the tax authorities, The short answer is that all income is taxable in South Africa and it is the responsibility of individuals to remain tax compliant.”

Regulations and taxation policies

The Australian Treasury changed its regulations and taxation policies on Bitcoin after seeing a sharp decline in interest in Bitcoin and other digital currencies in the country. Exchanges that used to operate in the country have left Australia to other Bitcoin-friendly regions such as Singapore and Hong Kong. For that reason, the Australian Treasury removed the double taxation of Bitcoin.

As its report read:

“For digital currency, the current treatment under the GST means that consumers are ‘double taxed’ when using digital currency to purchase anything already subject to GST. The Government recognises that this treatment may be preventing the use of digital currencies and hindering their further development.”

Aggressive taxation policies on Bitcoin could also result in a delayed andlimited growth for the South African exchange market and Bitcoin industry. The South African government must consider the effect of double taxation and clarify the taxation policies that apply to Bitcoin and digital currencies.

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Bitcoin.

Alan Zibluk Markethive Founding Member

Cryptocurrency Trading Volume Hits $4.3 Bln, Nears Stock Exchange Volume

Cryptocurrency Trading Volume Hits $4.3 Bln, Nears Stock Exchange Volume

    

The cryptocurrency trading volume hit $4.3 bln. Bitcoin

On May 25, the cryptocurrency trading volume hit $4.3 bln. Bitcoin, Ethereum, Ripple, Ethereum Classic, Litecoin and NEM drove the cryptocurrency trading volume to new all-time highs. Bitcoin developer and entrepreneur Jimmy Song compared the cryptocurrency trading volume to the exchange volume of major stock exchanges such as NASDAQ. Although the cryptocurrency market’s trading volume is only a fraction of major stock exchanges such as NASDAQ, it is nearing the exchange volume of smaller stock exchanges such as Thailand and Australian stock exchanges.

In order for the cryptocurrency market to near the trading volumes of major stock exchanges, particularly the 16 stock exchanges in the $1 Trillion Dollar Club, the cryptocurrency market will need to achieve a multi-trillion dollar market cap. Currently, the market cap of the cryptocurrency market is $71 bln.

Cryptocurrency investments

Investors and traders are investing in the cryptocurrency market for a variety of reasons. Some have invested in Ethereum because of its successful partnership strategy demonstrated by the Enterprise Ethereum Alliance. Others have invested in Ripple, the third largest crypto asset in the cryptocurrency market, due to its partnerships with the Japan Bank Consortium and leading financial institutions.

A large number of both casual and institutional investors have invested in Bitcoin as a safe haven asset to avoid potential economic uncertainty and financial instability. Some investment firms including Fidelity Investments are actively investigating the potential of Bitcoin and Ethereum by mining the two digital currencies and testing two-layer solutions such as Lightning and Bitcoin-based micropayments solution. If the demand toward cryptocurrencies continue to increase and investors begin to perceive cryptocurrencies as alternatives to existing financial systems, the cryptocurrency market could surpass the growth, market cap and trading volumes of major stock exchanges in the future.

A phenomenal method of raising funds

Furthermore, similar to the initial public offerings (IPOs) of public companies, Blockchain startups and commercial companies such as Kik have been launching initial coin offerings (ICOs) to sell tokens in a transparent and decentralized manner. Although analysts have raised concerns over the legality of ICOs and potential response from the US Securities and Exchange Commission, ICO, in theory, is a phenomenal method of raising funds for startups without intermediaries. More importantly, ICOs enable anyone within the community to participate in the investment, providing opportunities for small-scale investors.

Startups that raise or complete successful ICOs often have their tokens listed on cryptocurrency market data providers such as CoinMarketcap and on exchanges. Most recently, Gnosis, a Blockchain-based prediction market platform, raised a multi-million dollar funding round in an ICO at a $300 mln valuation. The Gnosis token was listed on major US-based Bitcoin exchange Kraken and within a month, it became the seventeenth largest crypto asset in the market. In a sense, the cryptocurrency market and the concept of ICO represents similar qualities and characteristics of stock exchanges — a decentralized, transparent and autonomous stock exchange.

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Bitcoin.

Alan Zibluk Markethive Founding Member

South Korea is Becoming Bitcoin and Ethereum Powerhouse

South Korea is Becoming Bitcoin and Ethereum Powerhouse

    

South Korea is becoming a Bitcoin and Ethereum powerhouse

in terms of trading volumes, liquidity and activity. Over the past few months, South Korea’s three largest digital currency exchanges Bithumb, Korbit and Coinone have added support for Ethereum traders by integrating Ether. In a relatively short period of time, South Korea has become the largest Ethereum exchange market with a $335 mln daily trading volume and 38 percent market share. In fact, the ETH/KRW pair processes more trades than the ETH/BTC pair, which used to account for over 50 percent of all Ethereum trading.

The largest Bitcoin exchange markets in the world

South Korea has also become one of the largest Bitcoin exchange markets in the world. Although South Korea is currently the fourth largest Bitcoin exchange market behind the US, China and Japan, a month ago, its trading volume and market share was larger than China and Japan and secured its spot as the second-largest Bitcoin exchange market for awhile. South Korean investors within the cryptocurrency market are very easily moved and influenced by the media. Ethereum’s recent Enterprise Ethereum Alliance deals with large conglomerates such as Toyota and JPMorgan have further validated the value of Ethereum to more local investors and have shifted the trend from Bitcoin to Ethereum.

Eyes set on altcoin

More importantly, because Bitcoin has become a conservative asset amongst other cryptocurrencies, investors in South Korea have started to look into altcoins such as Ethereum and Ripple that are supported by local exchanges. Most South Korean exchanges are funded by multi-billion dollar corporations within the country. Korbit, South Korea’s second-largest exchange, is invested by SK Telecom, the largest telecommunications company in the country. Therefore, when exchanges add support for cryptocurrencies such as Ethereum and Ripple, immediately, investors dive into altcoins. Particularly, investors that believe they missed Bitcoin’s rally invest in altcoins for large short and mid-term gains.

The demand toward Bitcoin has increased to the point where there always exists a huge arbitrage opportunity for overseas traders. Bitcoin is being traded in South Korea with a premium price of $2,800. That is a 21 percent premium over the global average price and other major markets such as the US. While it is still possible to purchase Bitcoin outside of South Korea with other options such as credit cards to avoid premium rates, it is difficult to trade large amounts of Bitcoin without being flagged by anti-money laundering systems. If the current growth rate of the South Korean Bitcoin and Ethereum exchange markets can be sustained over the next few months, South Korea could become a powerhouse for both the Bitcoin and Ethereum markets.

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Bitcoin.

Alan Zibluk Markethive Founding Member

Nevada Becomes First US State to Block Blockchain Taxes

On June 5, the Nevada State Legislature became the first US state to approve a bill which will block local government entities from taxing Blockchain transactions.

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Nevada is often recognized as the “silver state” due to its significant silver resources. It is also famous for being the home to Las Vegas, the city of entertainment. A big chunk of its revenue comes from casinos, and money is valuable in this location. For the first time, the state of Nevadahas taken a significant step in paving the way for the continued progress of Bitcoin.

On March 30, Republican Senator Ben Kieckhefer introduced Senate Bill 398 intended to protect Blockchain transactions under the state’s Uniform Electronic Transactions Act.

The bill provides an accurate definition of the Blockchain, stating that it is:

“An electronic record of transactions or other data which is:

  1. Uniformly ordered;
  2. redundantly maintained or processed by one or more computers or machines to guarantee the consistency or non-repudiation of the recorded transactions or other data;
  3. Validated by using cryptography.”

Bitcoin transactions are tax-free

Senate Bill 398, the Blockchain-friendly bill, was introduced by Kieckhefer last March and was approved unanimously by the Senate in April. The move was made right before the moving of the Nevada Assembly in May, whereby it was amended, approved and then turned back to the Senate who confirmed the amendments.

It was then sent to Governor Brian Sandoval whereby it was approved. In regards to the approval, Kieckhefer states:

“The potential uses of Blockchain are limitless, and I’m confident Nevada’s entrepreneurs will find ways to use this technology to innovate and drive our economy forward.”

He added: “I can’t wait to see what comes next.”

Following in the steps of Arizona

This is the second Blockchain-friendly bill that has been enacted into law within the past few days. On May 29, Arizona Governor Doug Ducey signed a bill which recognized the legality of Blockchain’s signatures and smart contracts.

Domino effect

Bitcoin influences and has a domino effect upon every state and company, and this law aims to promote both Nevada and the Blockchain community.

Let us hope that Nevada continues to become a decentralized Blockchain-friendly stateso that the amendments may focus on promoting honesty, integrity, validity and immutability — all of which Blockchain is known for.

One by one, US states are gearing towards the direction of Bitcoin. The digital currency that started small is now instructing the world and providing a path for how the future will grow financially.

The world is adjusting to Bitcoin, something never experienced before in history, and a world centered around cryptocurrencies is the future that we should look forward to.

Transparency and a better economy await with this law validating the legality of Bitcoin.

Chris Corey

CMO 

Markethive Inc

Contributor: Joshua Althauser

https://cointelegraph.com/news/nevada-becomes-first-us-state-to-block-blockchain-taxes#

Alan Zibluk Markethive Founding Member

Is Bitcoin or Other CryptoCurrency a Good Investment

Is Bitcoin or Other CryptoCurrency a Good Investment

Is Bitcoin or Other CryptoCurrency a Good Investment

Despite all denials of the techies, the Bitcoin continues to fly under the pressure of marketing that makes it a form of Russian roulette that benefits those who know the manipulation. Since March 26, the Bitcoin has increased from $ 973 to $ 2,795. A real explosion of prices which can only be explained by fraudulent maneuvers. It went from $ 16 billion to $ 43 billion.

But behind this surge, there are formidable manipulators who have means that are the exchanges of bitcoins of which several leaders are in prison. The founder of the world’s largest depository based in Bitcoins, now based in Zug, Switzerland, predicts that the value of a Bitcoin will surpass the million dollar mark in 10 years, taking by surprise the whole assembly and even the most Optimists in the sector. Some see the replacement of gold. We are in full delirium.

On several occasions, these dramatic increases came from the conversion of dirty money into Bitcoin. We do not know what causes these mood swings that fall quickly. Do they pose a fundamental question: Beyond the technology behind the object, from where comes the value of $ 32 billion?

No regulation of false rumors or manipulations

There is a lot of talk about the Bitcoin right now, as well as a few other crypto-currencies, but are they really good investments? Recently I read research which describes why Bitcoin are a good investment for the future. They also provide detailed analysis and data to showcase their study. So I am exploring based on that and my personal opinion on crypto-currencies.

I will divide this question into three points:

1. Are crypto-currencies really an investment?

2. What currency crypto choose?

3.Are crypto-currencies really an investment?

Nowadays, virtually everything is called an “investment”. In the case of crypto-currencies, trading (trading) and investment are again confused, even by financial professionals.

 

An investment is when you buy an asset that produces something, and that by extension creates income.

For example, if you buy a tractor and lease it, it will allow someone to dig to then put the foundation of a house, pull farm machinery, and much more. In exchange for the productivity of your assets, you receive an income.

The question is, therefore: does the crypto-currency produce something?

The main added value of crypto-money is that it can make anonymous transactions, so it increases economic activity (albeit generally illegal).

That said, it produces nothing tangible for you because its overall productivity is drowned in the pool of all transactions.

Your only hope is therefore that its overall productivity in the form of a currency function is growing so that you can “freak out” your crypto-currency.

Basically, crypto-currency does not produce income for you, and your only option to make money is that its demand increases.

When a profit is generated not by production but by the difference between the purchase price and the selling price, it is called trading and not an investment.

What does it actually mean that it is trading and not an investment?

Trading is speculation and it’s not complicated, 95% of people lose at this activity.

Investing is a much safer way to get rich. You simply need to be aware of what you are doing with your money, and not speculate in thinking that you are investing.

Which crypto-currency to choose?

Bitcoin? Zcash and Zcoin? SafeCoin? Syscoin?

Admitting that you understand that you are speculating, the only crypto-currency I would negotiate personally is the Bitcoin, for two reasons:

 

Reason # 1: Everyone knows the Bitcoin

This point seems banal and simplistic. However, it should not be forgotten that the value of crypto-currencies is based on people’s trust. Indeed they are “fiat currencies”, like the Canadian dollar, the US dollar, and virtually all currencies in the world.

People have a tremendous confidence in the Canadian dollar and particularly the US dollar, which is the world’s reserve currency. What about crypto-currencies?

How do people trust you, the Bitcoin, the Zcoin, or the Syscoin? Obviously, people have more confidence in the Bitcoin, and one can easily assume that it will only go by increasing over time.

However, there is always resistance, and people do not have enough confidence in the Bitcoin to move away from the Canadian dollar or the US dollar.

In particular, the critical point or the Bitcoin could explode in price is when people will have enough confidence to use another function of the currency: the reservoir of value.

When people have confidence in Bitcoin to use it as saving, as an entity where they can retain the value of their work, then everything will change.

But how could the Bitcoin reach this level? How to develop this trust? These questions lead me to the second reason.

 

Reason # 2: The Bitcoin is the only crypto-currency that has a real chance

The Bitcoin is the only crypto-currency that has a real chance of what? To become an official currency, endorsed by the government and the financial system.

A strong and unshakeable confidence in the Bitcoin can only exist if governments and the financial system give it their approval.

In fact, it seems that in Canada the government is increasingly ready to incorporate the Bitcoin into daily transactions. This is not cast in concrete, and the future is still vague at the legislative level.

One of the barriers to official currency status for Bitcoin is that the government cannot legalize a private currency, which would limit its ability to tax transactions.

Can another crypto-currency based on the blockchain possibly be adopted rather than the Bitcoin? Yes, but precisely, there lies the whole aspect of speculation: we must try to predict the future.

In summary, invest in crypto-currencies or not?

Honestly, the majority of people do not even have $ 2,000 in an emergency, according to an article I read, so I do not see myself buying Bitcoins.

In this situation, I would buy stocks, bonds, gold, and real estate well before buying Bitcoins.

So unless I have a full RRSP and a TFSA, stuffed with income-producing assets, I cannot justify buying crypto-currencies.

I understand the desire to hit a home run with the Bitcoin, the desire to make 10 times his initial bet. This may be suitable for some people, but I cannot endorse this strategy because it makes a lot more losers than winners.

The strategy to get rich that works for me and in general is to get rich in the long run, walking by walk, so surely find myself at the top of the stairs.

 

Aashish Sharma

 

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David Ogden
Entrepreneur

 

Alan Zibluk Markethive Founding Member