Tuesday August 29, 2017
Total BTC mined: 0.12011599
Total BTC mined USD: $550.33 (based on today’s current exchange rate)
Total Spent: $1891.50
Remaining to break even: $1341.17
A couple of major milestones to report on, the first being that Bitcoin briefly crossed $4700 before settling down to around $4500 at the time of this writing. This boosted value considerably and my ROI is now close to 30% in just 40 days.
I think we are mere days away from Bitcoin crossing the $5000 threshold and while I’m excited, those of you that have been following this blog know that I am very concerned about the cryptocurrency bubble and I think that once we cross that mark, there will be a definite pullback and I think we’re in for much more volatility than we’re seeing now.
One analyst at Goldman Sachs predicted earlier this month that we’d hit $4800 then see a major correction and the more I look at crypto the more I think they’re right. There’s a groupthink mentality that to prevent a bubble collapse everyone needs to hold onto their BTC to prevent massive selloffs and increase value. The problem is that it is creating a largely illiquid asset that can only be used for a handful of sites and transaction types.
What if tomorrow I had a financial emergency? With what I’ve amassed it would take days to get it out of the system to speak (exchange for fiat currency) and in small increments as most sites have very strict daily withdrawal limits. We’re creating something akin to an auction rate security where liquidity is only guaranteed so long as money continues to flow into the market but when it stops, the market becomes frozen (unless you feel that buying products on overstock then sell them for cash to move your money to USD is a viable strategy).
I know I created this blog to see whether Bitcoin mining was profitable and hopefully generate some affiliate sales and thus this blog entry is completely against what I’m trying to do but it is at last the truth about how I feel.
Today’s picture comes to us from Steven Worster.