Saturday December 9, 2017
Total BTC mined: 0.38779709
Total BTC mined USD: $5841.85 (based on today’s current exchange rate)
Total Spent: $1891.50
Remaining to break even: $0.00
Holy volatility Batman! Since we last checked in, Bitcoin doubled in price and nearly touched $20k/coin in midweek trading on Coindesk. Then came a pullback that has extended into the weekend and Saturday morning has been particularly brutal with prices dropping below $14k and some exchanges are currently reporting BTC near $13,000. In fact while typing the introduction and generating the Bitcoin mining value chart above Coindesk has seen a $1,000 drop!!!
As anyone that covers Bitcoin knows, this is all about context, in fact one week ago I was talking about Bitcoin breaking $10k/coin and what that would mean from a psychological standpoint and in a few short days it almost broke $20k. While a drop of 14+% in a matter of minutes is a scary situation to some, when I started this blog I was imagining Bitcoin would still be in the $3-4k range by now so all of these price peaks and valleys don’t phase me but for someone getting in on the tail end and looking at a 20-30% loss on a “sure thing” this is probably a frightening experience especially if they invested a significant amount of money.
It would seem the momentum that built up over the creation of imminent launch of Bitcoin futures trading has given way to fear and uncertainty especially with much larger amounts of money pouring into short or value buy the currency. I would caution anyone looking to get involved in cryptocurrency to prepare themselves for either a scenario where they double their money or lose everything and invest accordingly. Putting in $500 to test the market and get a working knowledge of how it functions is one thing, putting $50k from your retirement fund is another.
If I had $1 million today and could invest in Bitcoin or stocks, I would choose high dividend yield stocks and continually reinvest profits. The big thing investors need to pick up on is that the tax plan (if it passes) suddenly gives corporations a major pile of cash and with nowhere to put it, many are planning buybacks or dividend increases so you have a safer and now higher yield. Keep in mind that if you have your own account and trade you won’t incur much in the way of fees (especially on platforms like Robinhood) whereas the cost of trading crypto is only going to get higher as wallet providers raise their transaction fees to cover the cost of electricity.
Today’s picture comes to us from Thomas Kohler