Monthly Archives: October 2013

Bitcoin ETF Gets Hot and Cold Response

The First Bitcoin ETF Filed with the SEC

The Winklevoss twins have filed with the SEC to get approval of the first Bitcoin ETF

The Winklevoss twins have filed with the SEC to get approval of the first Bitcoin ETF

It was only a matter of time before a Bitcoin investor filed for regulatory approval of a Bitcoin ETF. The Winklevoss twins were the first to do so.

Reaction in the mainstream press has been both warm and cold. An example of the former comes from the ETF Database which wrote:

“With over $1.5 trillion in assets and nearly 1,500 products, many thought that the ETF world had run out of original ideas or that it had reached its saturation point. But the beginning of July saw that theory once again shot down, as a filing rolled in for one of the more controversial ETF ideas for quite some time. The Winklevoss twins, famous for their role in creating Facebook (FB), have filed for a bitcoin product and have taken the financial world by storm.”

But not all the publicity has been favorable. Zerohedge contributed a chilling commentary that was anything but receptive:

“That a BitCoin-based ETF is a horrible idea for those who believe in what BitCoin stands for, i.e., a status-quo regime-remote monetary process which is naturally also independent of existing capital markets, is quite clear. Yet a BitCoin-based ETF prospectus, namely the Winklevoss BitCoin Trust, with a proposed offering of 1 million shares at a price of $20 each, is precisely what the Winklevi filed today with the SEC. We can only assume this idiotic idea is proposed simply to entice the habitual gambling momentum-chasers, who seek a conventional method of pursuing the momentous volatility that only Bitcoin can offer now that regular BitCoin exchanges are being shut down by the US and other governments, as absolutely nobody else would be interested. That, or just another expression of the identical twins’ megalomania who enjoy nothing more than seeing their name in lights or in the title of a security. Because once one reads the risk factors, among which we find the following, we doubt even said habitual gamblers will be interested: “It may be illegal now, or in the future, to acquire, own, hold, sell or use Bitcoins in one or more countries, and ownership of, holding or trading in Shares may also be considered illegal and subject to sanction.” Well, you have been warned.”

Our view here at Planet Bitcoin is that the ETF won’t be a wild success story, but neither will it be the dismal failure portrayed by Zerohedge.

 

 

Despite Bitcoin Scandals, The Virtual Currency Blossoms

Bitcoin Scandals Fail to Dampen Bitcoin’s Appeal

Bitcoin ScandalNational Geographic ran a fairly evenhanded story that pointed out that “Bitcoins may change the global economy.” The thrust of the story was that in spite of frequent Bitcoin scandals – the most recent being the shut down and seizure of Silk Road – the Bitcoin currency continues to “blossom.”

The story states, “After the feds seized and shuttered Silk Road, an online marketplace for illegal drugs, earlier this month, some technology experts started sounding the death knell for Bitcoin, Silk Road’s international currency of choice. Instead, we may soon see Bitcoin’s real value.

Invented in 2008, Bitcoin is not the first attempt at an all-digital, cryptographically based currency. Others have existed in one form or another for nearly fifty years, but have either failed to take off or dramatically crashed and burned. Bitcoin is the first cryptocurrency with the deep structure, wide adoption, and trading momentum to achieve escape velocity.

In practice, Bitcoin blends credit cards’ ease of digital transfer with the relative anonymity of a cash handoff. Like all currencies, the problems it poses are both practical and metaphysical; like cash or credit, Bitcoin is somehow both more and less real than the goods it is traded for.

Until now, the most well-known of these goods have been illegal drugs, like those on Silk Road. But the drug marketplace’s shutdown gives Bitcoin a chance to gain some much-needed legitimacy. “It’s a watershed moment for Bitcoin,” Marco Santori, the chairman of the regulatory-affairs committee of the Bitcoin Foundation, told The New Yorker. “Bitcoin’s PR problem, with which it has struggled for the last year or so, is being addressed in a very direct way.”

Bitcoin’s future potential was a hot topic this week at emTech, an MIT conference on emerging technologies. In a panel hosted by MIT Technology Review’s Tom Simonite, MIT economist David Johnson and BitPay CEO Stephen Pair discussed Bitcoin’s complex relationship with paper currencies, credit, and state authority.”

 

 

Bitcoin Raids Fail To Dampen Bitcoin Demand

Bitcoin Demand Continues to Grow In Spite of Bitcoin Raids

Bitcoin RaidThroughout 2013 there have been frequent raids on businesses that are aligned with Bitcoin. In spite of the onslaught of bad publicity, Bitcoin continues to gain favor – and demand – from the public at large.

The Washington Post featured a story recently that reports on the counter intuitive results these raids have had:

“In the first four months of 2013, Bitcoin saw a massive rally, rising from $13 at the start of the year to $266 on April 10. The price then crashed to $50 later in April, rose to $170, and fell below $65 in July.

But in the last three months, the price of Bitcoins has risen steadily. It hit $140 earlier today.

The currency’s value has risen despite a spate of negative headlines. Earlier this month the feds arrested the alleged mastermind of the Bitcoin-based narcotics marketplace Silk Road. In July, federal regulators shuttered an alleged Bitcoin Ponzi scheme. And the leading Bitcoin-based exchange, the Japan-based Mt. Gox, has had a series of problems, including a U.S. government crackdown and an acrimonious legal dispute with a former business partner.

But at the same time, entrepreneurs have been quietly building new businesses on top of the virtual currency. Few if any of those businesses have produced big profits yet. But the fact that so many entrepreneurs and investors are pouring resources into the system — despite its highly publicized problems — suggests a high degree of confidence that those problems will be worked out in the long run, and Bitcoin will become an important part of the world economy.”

 

 

Bitcoin – The Groundbreaking Digital Currency

The World’s Foremost Virtual Currency

Bitcoin is the world’s first and foremost purely digital currency. Bitcoin.org describes it this way:

“Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.”

Althought the video below is a couple months old, it makes the point that savvy professional investors are getting involved in the Bitcoin reformation.

 

 

Here’s a little bit of info from the video description: “The prospects for the alternative cyber-currency known as Bitcoin have brightened, with some serious financial players preparing to open it to investment. The Winklevoss twins, best known for suing Facebook’s founder Mark Zuckerburg over claims he stole their social network idea, are planning to float a Bitcoin trust. But even though the multi-millioniares are now going along with Bitcoin, the rebel currency still has a strong grasp over those drawn to its anti-establishment charm – as RT’s Marina Portnaya reports.”

Ready to get started? The first step is to create a Bitcoin wallet. Or, if you are a more sophisticated Bitcoin proponent, you might consider an automated Bitcoin trading robot.

Show Your Support for BTC with a Bitcoin Keychain

Help Promote BTC with a Bitcoin Keychain

Bitcoin KeychainIf you’re reading this page, you obviously have some level of interest in Bitcoin. Maybe you’ve already created a Bitcoin account and purchased a few Bitcoins as an investment. Maybe you are eagerly awaiting the day that Walmart begins to accept Bitcoins as a form of payment.

As you look forward to the day that each Bitcoin will be worth $1 million, why not show your support and help promote the crypto currency revolution with a Bitcoin keychain?

You can get a Bitcoin Keychain from Amazon and have it the next day.

Here are some of the features:

  • Brass-plated Bitcoin Keychains are a great conversation starter
  • Keep a solid metal coin-like Bitcoin Collectible with you at all times
  • As seen on WashingtonPost.com, BusinessInsider.com, CoinDesk.com
  • 1-3/8″ diameter (bigger than a 1-BTC Casascius Coin)
  • Makes a great gift for (and from) Bitcoin enthusiasts
  • Is a great conversation starter

As one reviewer on Amazon stated, “This is a pretty clear cut buy. It’s exactly what the picture shows. High in quality the only real downside here is amazon wouldn’t let me buy it in bitcoin!”

Neither Amazon nor Walmart are currently on the list of merchants who accept Bitcoin, but we sure are looking forward to the day when they get added to the list.

Bitcoin Investors Pouring Capital into Bitcoin Startups

Bitcoin investors are aiming to cash in on the explosive growth in the value of Bitcoin. Even the revered Wall Street Journal is reporting on the phenomenon:

 

 

About the topic of the video: “Bitcoin startups are beginning to raise sizable investment capital even as industry leaders warn that hackers are abusing the Internet virtual currency for profit.”

However, it’s not just venture capital firms that can cash in as Bitcoin investors. Even the average earner can create a Bitcoin account, buy some Bitcoin, and experience the rapid appreciation in the value of Bitcoin.

It’s Easy to Create a Bitcoin Account

Creating and Using Bitcoin Accounts

Creating and using a Bitcoin account in most cases is easier and quicker than creating and using a traditional bank account. In order to get started, read an overview pertaining to Bitcoin accounts from Bitcoin.it:

“Think about what happens when you give a bank teller some cash and ask that it be deposited into your account. You tell them your account number, and they credit your account with that amount of money.

The money itself is mixed up with all of the other money in the bank, and is given out to other customers with other account numbers.

With the Bitcoin “accounts” feature, you are the bank. The balance you see is the total balance for all accounts, and you can create an arbitrary number of accounts.

When you receive bitcoins, they are always assigned to one of your accounts, and you can change which account is credited based on which bitcoin address receives the coins, just like you tell a bank teller which account to credit when you deposit cash in your bank. However, sending bitcoins is like withdrawing cash from the bank; the coins that are sent out and debited from an account are almost always not the same coins that were deposited into that account.”

 

 

For more information on creating Bitcoin accounts, please visit our page on how to create a Bitcoin wallet.

Bitcoin Future Value to Reach $1 Million?

Will Bitcoin’s Value Ever Reach $1 Million?

The media is abuzz with the story of how a man bought $26.60 worth of Bitcoin, forgot about the purchase until recently, and has now remembered making the paltry investment only to discover that the puny purchase has turned into a significant windfall.

The 5,000 Bitcoin that he purchased 4 years ago for less than $30 has turned into $886,000 at today’s value.

It’s no secret that the value of Bitcoin has soared since its creation several years ago.

With the current value of Bitcoin in the $200 range, the question is whether Bitcoin’s appreciation has reached its peak, or if there’s more increase in value to come.

Max Keiser, a London-based financial broadcaster and former stock broker from Paine Webber, discusses the future value of Bitcoin and makes the bold prediction that the price per Bitcoin could reach $1 million each in the not-too-distant future.

Here’s his commentary:

 

 

 

$26 Worth of Forgotten Bitcoin Now Worth $886,000

Man Buys $26.60 Worth of Bitcoin, Forgets About Them, And Now Discovers They’re Worth $886,000

Imagine this: you’re doing research to write a thesis on encryption. During the course of your research you come across a novel new digital currency. So you spend less than $30 to buy some.

Then you forget you ever made the purchase.

Fast forward 4 years, and that meager investment is now worth more than three quarters of a million dollars.

For one man, that’s exactly what happened.

The Guardian reported that “Kristoffer Koch invested 150 kroner ($26.60) in 5,000 bitcoins in 2009, after discovering them during the course of writing a thesis on encryption. He promptly forgot about them until widespread media coverage of the anonymous, decentralised, peer-to-peer digital currency in April 2013 jogged his memory.”

You can read the rest of this amazing Bitcoin story here>>

Bitcoin Sniper Trading Robot

Automated BTC Trading With Bitcoin Sniper

Bitcoin SniperBitcoin Sniper is software program designed specifically for automated trading of Bitcoins on a Bitcoin exchange. The developers and promoters of this software claim that “no experience is needed” to start trading.

While that may be true, amateur/beginner traders should not expect to earn “$9,280 Dollars today trading Bitcoin”.

Please note that the claims of earnings are headlined in bold print, while the disclosure if buried at the bottom of the page in fine print. Before buying this software, please consider these facts from the official sales page:

“HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.”