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Why These Crypto Critics Are Dead Wrong

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Never in my lifetime have I seen such passion on a blog!

All thanks to the fabulous profits — and dramatic intermediate declines — in a single, unique, new kind of investment vehicle, cryptocurrencies!

Some crypto critics, especially government officials, would have you believe that cryptocurrencies “have no intrinsic value and should go to zero.”

Bah! We’re so darn tired of hearing this argument we decided to refute it once and for all — right here and now.

First, for so-called economic experts who profess such theories, it’s time to go back to Economics 101. What defines most of the value in most forms of money — whether cowry shells, paper greenbacks or digital currency — is not its so-called “intrinsic value.”

Heck, if that were the case, a hundred-dollar bill would be worth less than a cent and a $10-million bank account would be worth only the half-second it takes to delete it.

Unless you’re talking about precious metal coins, any official discussion of so-called intrinsic value is nothing more than a smelly smokescreen. Anyone making that argument should know darn well that what truly gives value to modern-day money is acceptance and usage.

Let me spell that out …

A currency will have value if it is accepted and used by a large community of individuals, businesses, financial institutions, governments and others.

Is that everything? No. In addition, a currency should have some sort of foundational application that gets the ball rolling — a starting point from which an entire economy can be built. We call that a “value anchor.”

Consider fiat money like the British pound or the U.S. dollar, for example.

Care to guess what the foundational application is? Historically it’s been the fact that you have to use the currency to pay the tax man.

That’s right. It’s generally agreed that the original value anchor for a government’s fiat money is the payment of government taxes.

It makes sense: Almost all adult citizens of a nation are required to pay taxes in some form. Further, the volume of tax revenues is more or less correlated to the pace of economic activity.

So indirectly, the value of a currency is anchored to the economic activity of the people who use it.

Isn’t this why economists say a national currency is backed by the productive capacity of the nation? Isn’t this why foreign exchange traders like to buy U.S. dollars when the U.S. economy is growing … or Australian dollars when commodities are booming?

What About Crypto?

Crypto detractors would have you believe that, unlike fiat money, no one is required to use cryptocurrencies.

Here’s what they’re missing …

First, although crypto is still younger and more volatile than the dollar or the pound, it’s already far more advanced in terms of anonymity, ownership and decentralization.

For the first time in modern history, individuals can truly own and fully control their own wealth without relying on — or being beholden to — any central authority.

Second, if you want to understand the real value of crypto, you have to look beyond just payment processing. You need to understand …

Why Cryptocurrencies are
MUCH MORE Than “Currency”

Most people have gotten into the habit of using the word “currency” for all cryptos. But what the critics seem oblivious to is the fact that crypto is really much more than that.

In fact, for most second- and third-generation cryptocurrency technologies, the term “currency” doesn’t really apply anymore. They are really crypto-platforms that are creating virtual economies and, potentially, even virtual nations.

Take Ethereum, for example, a platform capable of supporting a whole series of different functions.

You can use Ethereum to raise money with Initial Coin Offerings (ICOs). And unlike IPOs, which are restricted primarily to enterprises in advanced nations with relatively big budgets, ICOs are used by projects of any size anywhere in the world.

In fact, Ethereum is the basis for an entire economic system, called a “token economy.” And unlike the traditional economy, it is borderless, permissionless, decentralized.

Let’s say a gold mine decides to issue tokens that can be redeemed for gold. And let’s say these tokens are created and exchanged with Ether. In other words, they are built on the Ethereum platform.

What does that mean? Well, it means that the Ether token is backed by gold (at least partially and indirectly).

And let’s say thousands of similar projects start running on top of the same crypto-platform. It could be commodities, services, companies, governments, you name it.

In fact, if properly designed, a crypto-platform is capable of running virtually anything.

ICON for instance is being used by financial services companies, universities, even hospitals. All based on the same technology. All with their ICX token, used as the glue that ties everyone and everything together.

Why? Because ICX is THE standard in the ICON economy.

No, not everyone in any particular country on the planet is required to use ICX. But remember, cryptocurrencies are borderless. What matters is that everyone who wants to live and operate inside the ICON economy WILL likely be required to use ICX in some shape or form.

Ditto for cryptocurrencies like NEO, Ark, EOS, Cardano and many others. Each has its own laws and regulations, its own service providers, its own community, its own citizens. Thus …

It’s about time that the critics wake up to what’s really happening in the crypto world: Instead of thinking about these platforms as mere payment networks, they must be viewed as virtual nations with ties to the real economic world that anchor their value.

Suppose thousands of businesses join this virtual nation. Suppose it grows to such size and scale that you can use its tokens to acquire virtually everything you may need for your everyday life.

  • To buy shares in private companies listed exclusively on its exchange.
  • To book a hotel room or buy a condo.
  • To buy groceries directly from producers with no intermediaries.
  • Even to buy gold.

Now, could the critics still say that the cryptocurrency has no backing, no intrinsic value, no anchor to the real world?

Sound far-fetched? Actually, all the examples above are real projects being deployed today on the Ethereum blockchain.

And real people are being drawn to these kinds of crypto-economies in droves.

Because they see a level playing field, a platform that’s free from the bureaucracy and geographic limitations of nation-states.

All with no language, cultural, political or geographic restrictions! All neutral, borderless, decentralized, permissionless and censorship-resistant.

So if anyone tries to tell you that “crypto is going to zero,” just hang up the phone or show them to the door.

Then always remember: Cryptocurrency is not just currency. It’s also a platform for a virtual economy that’s directly linked to the real world.

And that’s the true meaning of real value.

Now we want to hear what you think. Do you believe cryptocurrencies have an intrinsic value? If so, what’s your reasoning?

Or are you firmly entrenched in the “Monopoly money” camp?

Let me know your thoughts in the comment section below. Then, join the debates with hundreds of other crypto enthusiasts and skeptics!

Best,

Martin and Juan

Comments 648

Doug February 14, 2018

No and No

ROBERT M. SAULS reply_all Doug February 24, 2018

CAN YOU BUY CRYPTO IN THE US MARKET WITH US DOLLARS??
CAN YOU SELL THE CRYPTO IN THE US MARKET AN GET US DOLLARS FOR IT?????? PLEASE REPLY.
ROBERT SAULS

WeaverDreams reply_all ROBERT M. SAULS February 24, 2018

The short answer is OF COURSE

COINBASE or GEMINI

Dennis Fassuliotis reply_all ROBERT M. SAULS February 25, 2018

I dont understand why Doug would say no. If you just broaden the question to buying crypto from a US based company with US Dollars and limit it to US based exchanges like Coinbase, Gemini, and in some states but growing, Robinhood, then yes.

Chris Tarjeft February 14, 2018

I discovered Bitcoin at $0.008 per BTC in late 2008 or early 2009 (I could swear it was late 08 but wikipedia insists Bitcoin was invented in 2009) I disagree and if you look at archive.org you can see bitcoin.org was live in late 2008. When I found it, I wanted to put $2000 in simply because I got a “this looks too ‘geeky’ to fail feeling from it” (I did not understand nearly as much as I do today about blockchain, cryptography, or bitcoin then). I told my twin brother about my idea and he talked me out of it completely, something I regret to this day. I did however wise up and start averaging into Bitcoin in the $50s and again in the $250s. I’ve done very well but it IS extremely difficult to watch it go up parabolic amounts overnight and not sell huge chunks of what you have invested (I sold large portions at $2900, $6000, final 10% at $17500). I still have stakes in some Bitcoin mining operations through an ICO and a few Bitcoin and Ethereum. I’ve learned a lot from my youth to now about investing, averaging in (averaging out of something you truly believe in vs dumping out when you get excited at your return). The largest driver of belief in crypto currency is ironically Governments and their continued fleecing of populations by printing more money. We think it is bad here in the United States, when you go abroad and you see your Ukrainian mother in law stuffing $100 U.S. bills under her mattress because she fears 500% overnight dilution you just feel terrible for the rest of the world. We are all getting diluted non-stop by governments no matter where we live and their infinite printing policies. I believe we will see a strong resurgence in precious metals along with a slow and steady climb of crypto currency adoption and value (presuming the governments don’t harshly outlaw it under the guise of consumer protection). Let’s face it, the only way ‘out’ of $20 trillion in debt is to print $60 trillion more and make the $20 seem like ‘no big deal’. The printing and debt cycle of governments is not something we can stop, investing in value store and value movement is something we can control. I have a calculator called “woulda, coulda, shoulda” that calculates my ROI if I had bought those bitcoins at $0.008 and held. I would have been worth over $19 billion at Bitcoins current apex of $17500.

Ike reply_all Chris Tarjeft February 15, 2018

@Chris, I learnt about Bitcoins when it was $0.08, but didn’t pay any attention to understand what it was about. I sort of, semi-consciously followed its development till when it was worth a little over $1K in 2017 January. I eventually bought my 1st BTC in June, 2017, & sold it almost immediately afterwards,…regrettably too… & didn’t invest again until January 2018. Now, am clawing, & mooing in pain as I invest… I missed the early Bitcoin Moon landing, but I’m now determined not to miss the trip to Mars!

H Greenwald reply_all Ike February 26, 2018

I do feel that cryptocurrencies do have an artificially created intrensic value created by what coin banks are willing to accept for a particular coin in governmental currency and what the coin bank needs to price the coin in order to sell it.

Anna Griffith reply_all Chris Tarjeft February 26, 2018

My opinion: One definition of intrinsic is “belonging naturally; essential”. The word is being used by people who have no idea of it’s definition. There is nothing intrinsic about any medium of exchange but gold and sea shells and maybe cocoa beans. And certainly not of any paper or coinage. So, to me the whole ‘intrinsic” argument is based on a desire to distract and sheer ignorance. Everything only has the value that the people using it agree on, usually in a market of some kind, be it on the ground in a village in the Andes or electronically. Therefore, it is my opinion that cryptocurrencies are a response to being completely FED UP with the status quo of manipulation and corruption in Washington and Wall Street. Guessing, by anyone, about what will happen with cryptocurrencies is folly and deserves no time whatever by serious students. I like the idea. Liking an idea may make it popular but it won’t make it successful for long. I like the idea that some very smart and intelligent people, who care little or nothing about Wall Street’s, or even Washington’s future are developing an alternative means and hopefully, method, of payment. Apparently there are many other applications of the block chain that will also End Play around the entrenched, self-enriching Establishment. I’m for that, too. I’ve read the White Paper, for what that’s worth.

Ed reply_all Chris Tarjeft February 26, 2018

wow but it still at the beginning of the curve I believe when it is most adopted all over the world the price of one btc might go from sixty thousands to ninety thousands being conservative here I see more people buying , mining , holding and that means more higher prices in the near future and I think it will be worth more that paper money

Simon February 14, 2018

To invest in Bitcoin or crypto is very risky now, right?

Anthony reply_all Simon February 15, 2018

All investments are, it depends of your strategy. Investing *a lot* or *everything* you have*only* in Bitcoin, is indeed, extremely risky…

Al February 14, 2018

I have a small investment in various cryptocurrencies, purchased when bitcoin was about $6,000 per coin. I was down a little a week or two ago, but well in the money again today. I have only $20 to 40 in some of the coins/tokens; somewhat more in a few others. Have about 15 coins/tokens in all.

Christian Denning February 14, 2018

Wish I had purchased bitcoin but I did no

Filthy Witch reply_all Christian Denning February 16, 2018

You don’t have to purchase a whole bitcoin. You can buy a fraction of one for as little as $20.

Brent February 14, 2018

1) yes and it’s amazing this happened so fast!
2) tried to invest but ran into problems on Coinbase.

ShellyO reply_all Brent February 22, 2018

I ran into trouble with Coinsquare, it seems impossible to get money out once it’s in or to transfer elsewhere for investment in other cryiptos

reuben abraham February 14, 2018

what about those hackers that stole millions from crypto investors ?

Rob reply_all reuben abraham February 15, 2018

Internet security matters….always has always will. It is poor security practices that have caused these breaches/losses. The crypto currency/blockchain itself has not been compromised..in fact all the bitcoins are posted in public on the internet right there on the blockchain for all to see.

People that choose to store their coins/currency on the exchanges instead of hardware wallets, such as the Nano Ledger, are at much bigger risk of loss. There are methods to nearly eliminate risk of losing coins but inevitably people trust other entities and all it often comes down to is a lowly software patch not installed or a tech who writes his password on a post-it under his mouse pad.

Donda Richardson February 14, 2018

I was trying to purchase bitcoins last year and could not get through all the website stuff. I was diagnosed with MS and was having a hard time processing the information. It was such a struggle. I should have kept it up:-(

william gunn February 14, 2018

Martin,
The crypto<s have no real value so who is the all knowing genius that will tell me which one is a legit investment??

Ray Bortz reply_all william gunn February 14, 2018

The same genius(s) that met on Jekyll Island and came up with the Federal Reserve Act of 1913. If you look at it gunny the $$ bill isn’t legit either.

Leon DiJusticia reply_all Ray Bortz February 15, 2018

The only value money has is what it is perceived to have which is evident by the confidence people put in it.

The purchasing power of today’s dollar is less than 1% of what it was 100 years ago.
By any standard of measurement would it really be considered an instrument worthy of confidence. The central banks conjured the entire scheme of the dollar to literal such the wealth of the public using nothing but thin air.

The cryto-currencies haven’t been around long enough to become established instruments of confidence. There are many hurdles to overcome before they can really take the place of currency in large part because of the number of transactions which can be processed. Recent thefts too, have not done a lot to instill confidence.

The primary success of the crypto-currencies is the fact that (at least up to this point) they have become a means of moving large amounts of money under the radar of international boundaries and governmental regulation.

Whether crypto-currencies ever become an accepted duly established monetary system and a world currency will depend solely on whether the central banks and the governmental authorities begin to embrace it or crush it.

The primary issue these powers are grasping with is if they utilize cryto-currencies to their advantage. If these authorities adopt the opinion that the use of crypto-currencies cannot be as profitable as their current system, mark my words, they will find ways to usurp its utilization.

One measure which is already on the table is their taxing the purchasing of cryptos as much as 50% going into them, and then taxing it 50% again getting out them.

WeaverDreams reply_all Ray Bortz February 17, 2018

Good point Ray Bortz
I’m so glad to see someone I trust like Martin Weiss coming out and explaining this. You see so many people who don’t get it that currencies are only as valuable as the people perceive them to be. Why people don’t get that crypto currency‘s are a huge improvement over Fiat currency’s is beyond me. But this article points out the most important part of all of this-is that it’s a a whole new platform that can be used for many many things. I like the terminology virtual nation. I hope to see a lot more post like this and I would like to see Martin Weiss give us some recommendations on which ones to buy and when.

Andrew reply_all william gunn February 18, 2018

I have a lot in OmiseGO) (OMG). Check their website out. Essentially OMG tokens act as payment processors for any type of transaction (including fiat). Think of them as functioning similar to shares in Visa or Mastercard (although purely transaction processing, since credit isn’t offered, although any institution offering credit could still use OMG to process a credit payment, it just wouldn’t be the OMG network honoring the risk of the credit itself). If you own an OMG token you can remove it from circulation and “stake” it on your computer. Staking means your OMG tokens now act as transaction processing licenses for the OMG network. The amount of tokens you own and are staking at a given point in time corresponds to the amount of transactions your computer can process per interval of time. You then get a fee for each transaction processed just in the same way Visa or Mastercard charges merchants around 2% for using their own network.

The kicker here is that OMG has no overhead outside of a regular computer, and especially no security costs (the decentralized ledger overrides the necessity for security expenditures) so there is a huge cost-leadership strategy inherent to it. After looking at a lot of people’s guesstimates I think the fees could easily be 0.5% or even lower if the OMG network marketplace decided to reach that level (fee %’s are determined by supply and demand in the OMG network so no one really knows what the fees will eventually be). If you come to the conclusion that the fees can be this low and remain profitable, then it creates major disruptive potential among merchants who want a cheaper payment processor. Mass cultural acceptance of crypto isn’t even a requirement for OMG to succeed, it just has to provide an obvious cost advantage to a merchant, and then consumers could be paying for things in a store and not even realize that OMG processed their transaction. In addition OMG is being built to be able to process over 1 million transactions per second, which is far and above the amount any major credit card company can process (I believe they number in the thousands per second).

And finally they also have one quality that makes me trust them which is that after their ICO finished, they barely market themselves at all, and they are in NDA’s with international banks. If you are designing a decentralized software application that you believe can make you huge amounts of passive income if it’s successful, why would you want to market it before it’s finished and jack up it’s price? you’d probably want to keep it relatively under the radar so you could accumulate more over time, and we all know that these things aren’t subject to insider trading laws.

So yeah in my opinion OMG is worth more than gold if it is successful, because gold is a commodity with it’s own market value, whereas OMG is more like an income producing security that never expires, and has no limitations to processing transactions anywhere in the world, and most importantly, like Visa, it functions atop the consumer marketplace so it theoretically should be able to survive through any disruptive industry changes in the world, and it would always stay on top of inflation, because its income mechanism isn’t frozen like the interest rate on a bond, but instead is derived directly from consumer purchases which always incorporate inflation.

Also since OMG processes transactions, it can also act as a decentralized exchange for anyone who wants to use it (whether or not they own OMG). If you live in the US and travel to Japan, you have to pay like $30 or something to get Yen at a bank, and then if you have extra at the end of the trip you switch them back for a fee again. OMG would allow you to have US dollars in an OMG wallet connected to mobile pay. You could then hover your phone over the credit card swiper in japan, OMG would determine that the merchant is asking for X amount of Yen and immediately exchange some of your dollars for that exact amount in yen at current market rates, while only having to pay the same OMG network market based fee. In the end the cost savings on international travel and trade could become enormous.

OMG is traded on all the popular exchanges and it’s not the most well known but it’s definitely popular enough to warrant being on Weiss’s crypto ratings so I was surprised when I didn’t see it. Especially because OMG is built on top of the Ethereum network and is supported heavily by the Ethereum team as being one of the bigger solutions to helping Ethereum scale better (1 million transactions per second).

Felt compelled to tell someone in here about this since I know the community in here is overall older than on reddit, and I figured that OMG would make the most sense from an investment perpective on a conceptual level. (I am in agreement with those who think bitcoin is a bubble).

SBH reply_all Andrew February 20, 2018

Agreed….OMG is a great concept. Since Asia’s economy will flourish over the next 20-30 years i’ve also read Omisgo brings 50,000 merchants together with 420-million people in the asian countries. OMG has great potential.

Christine Strauss-Ehret reply_all Andrew February 24, 2018

Hello, your comment is very helpful. Where can I get omisego and stake? On an exchange? Or is it necessary to make an account somewhere else? Thank you for your answer. Best regards! Christine

Christine SE reply_all Andrew February 24, 2018

Hello, your comment is very helpful. Where can I get omisego and stake? On an exchange? Or is it necessary to make an account somewhere else? Thank you for your answer. Best regards! Christine

Paul Waterhouse February 14, 2018

My sons and I invested 100K in Bitcoin, Etherium but mainly Ripple. We saw our investment double but made the mistake of no cashing out our original stake. Now down 60% we are still confident in Crypto and are in it for the long term (2 Years+). There is nothing like a loss of this magnitude for concentrating the mind. We now take no advise but do our own due diligence whist listening to others opinion.

Rob reply_all Paul Waterhouse February 15, 2018

Bitcoin and Ethereum already on their way back up.

Sue reply_all Paul Waterhouse February 17, 2018

Curious what Ripple is about. Also, wondering how you went about your investment. Just starting and interested in Etherium. Could use some advice.

John Byrd February 14, 2018

I do not understand what makes cryptocurrencies so valuable or how the investment in them create so much cash.

Rob reply_all John Byrd February 15, 2018

Peoples perceived value of them…is the appeal I believe. Not unlike USD. People are tired of being ripped off and charged excessive fees by big banks.

Today I deposited a Certified Cashiers check from The Royal Bank of Canada (Partner of JP Morgan-which was also emblazoned on the front of the check). My bank teller looked like I had handed her a piece of plutonium. Their eyes got big (she of course had to call a supervisor over) and said “oh this is a Canadian check” I said “it is Certified Cashiers Check from one of the biggest banks in Canada and a partner of JP Morgan as it says there on the front of the check…..have you heard of them”. She said “..well I hope you don’t need these funds anytime soon…it will be about 7 days”. For a Certified Cashiers check!!

There are many people around the world who don’t have or can’t afford a bank account. Crypto can be transferred far faster and cheaper than the charade I went through just today. Rest assured my bank will have my money tomorrow and they will have loaned it out 9 times (literally) and show all those loans as assets on their next months accounting records. Meanwhile I don’t have access to money for a week…this is the same money that was already withdrawn from the bank account it came from in Canada. So where is the money all this time? You think banks don’t actually have it right now? Of course they do..all of these transactions are electronic and done instantaneously.

That is one example of why something (crypto)… is more valuable than the current extortion.

Another example would be bank wires. Two weeks ago I sent one..it took a day (not too bad) but my sending bank charged $30 to send it and the receiving institution charged $10 to receive it? So, if you are poor and you need to send money fast what are your options?

If crypto can replace this scam we endure now it will have plenty of people around the world.

pat reply_all Rob February 17, 2018

Transferring small amounts of BTC is also quiet expensive,so for small payments BTC is not good and the hard forks like BTC cash and segwits were rejected by the BTC miners, there is also a big problem with BTC that go lost, apparently 5 million BTC of the less then 17 million coins mined went allready lost so I guess this is not going to survive in the long term (another +10 years) but for the time being it serves as a platform for buying many other crypto coins togheter with ether. Untill we will see many of the total worthles crypto’s fail this crypto bull could go much higher and I guess it will for quiet a few years with ups and downs.
I guess of the + 1400 crypto’s maybe not a hundred will survive, but the winners will make up for the futur in this fake bankrupt fiat money scam system .

Martha Shartzer reply_all Rob February 18, 2018

Poor banks, they must make alllll their monies in fees.

Anna Griffith reply_all Rob February 26, 2018

YES!
Living in Mexico and banking there, in the U.S., and in Canada – and for heaven’s sake, don’t travel outside those countries !, the scam and racket that the banks are running is criminal, in my opinion. I’m not even poor and it makes me profoundly angry. I’m for anything that will scare the living s— out of these people.

Sam reply_all John Byrd February 16, 2018

Dude, did you read the above?

Chris Merriam-Leith reply_all John Byrd February 23, 2018

John, please contemplate my answers very carefully because these are serious responses. First, do you understand how the US dollar works? Do you understand how Fiat currencies work? Do you understand how the internal combustion engine works? In some cased understanding how something works is very important and in other cases understanding how something works is not important. It’s your responsibility to determine what your level of economic literacy must be. Educate yourself so that you can answer the above question for yourself. Once you have this answer you will understand what you need to know and what you don’t need to know.

jerry bechard February 14, 2018

Huge huge profit potential……………and huge huge huge loss potential. Hard to justify.

Mike February 14, 2018

The stories are OK, realizing that dropping fancy people and place names somehow make people pay more attention (though it has little to do with the economics). Taking the lowest point and the highest point to make a dramatic story, but leaving out the important part of volatility swings, that’s why I say just OK. Those swings can be frightening and beyond many people’s risk tolerance.

Thing holding me back – 1) where to I trade and park the trades/funds safely? How do I know that wallet A or wallet X will be around tomorrow and not take my money with them, and 2) not sure whether advisable to use a VPN to do transactions, purely for privacy’s sake.

Rob reply_all Mike February 15, 2018

Park crypto coing in “Cold storage” (Ledger nano) or u can use a paper wallet which is also offline and safe. Use a VPN, NEVER use public wifi, use an encrypted password manager, use a separate computer (doesn’t have to be expensive) for crypto only (don’t surf any sketchy sites with it), don’t use your phone for trades (phone can be cloned), and ALWAYS use 2 factor authentication.

Chris Merriam-Leith reply_all Mike February 23, 2018

The answer to your questions is simple. You must take responsibility for educating yourself. Stop passively asking questions and start proactively learning how to answer them. Economic illiteracy is your own fault.

Fred Gibson February 14, 2018

I don’t know how to buy, sell, trade bitcoins, and I don’t know how to protect my account from hackers. Also, I don’t know where I could get the information and learn how the system works.

Rob reply_all Fred Gibson February 15, 2018

Coinbase account is your best bet (however you don’t actually use Coinbase. Wire your money to GDAX (its cheaper/faster and Coinbase owns that exchange-makes no sense but it is the case). Don’t store your coins on there unless you are actively trading them. Store them in a offline cold storage wallet like a paper wallet or Ledger Nano. Trade on GDAX w limit orders and it is free.

Suzy reply_all Rob February 22, 2018

How can one purchase crypto if they do now have a bank account?

Josip February 14, 2018

So you purchased enough for now and started with promotion? 🙂 This article is pretty different than the ones that were coming from you in the last few weeks 🙂

No problem, you are finally on the right track.

Murali February 14, 2018

Great observation and good to see you supporting the growing world of crypto as opposed to just creating FUD. Keep it up!

Daniel Barber February 14, 2018

I don’t know anything about them for one reason. It seems too late as well.

Rob reply_all Daniel Barber February 15, 2018

You will think not that when Bitcoin blows through $30-40K this year. Go back and take a look at the last 3 years of charts for Bitcoin. Every year Jan-March the price is in rapid decline…then it explodes to new highs later in the year.Rinse repeat. Lots of money to be made up and down…or just if you want to hold and ride the waves out long term.

Even Frewder reply_all Rob February 17, 2018

Do a careful analysis, and then consider that Bitcoin becomes fully fungible within the next 4-6 months due to the implementation of the Lightening sidechain, which, reportedly will allow for more transactions per second than Visa, MC, and AmEx combined, and, either for no fee, or virtually no fee. Also consider the fact that the infrastructure of Bitcoin/cryptos is exploding, making it more and more likely that mainstream companies like Amazon will be accepting it soon. In fact, there is a HUGE rumor from VERY reliable sources that say that Amazon is planning to accept Bitcoin the moment it becomes fungible. We already know that Amazon has registered several domain names that include “bitcoin” in the address. Once that happens, and Wal-Mart.com follows suit, you WILL see Bitcoin go straight to $500,000. You already have Byrne from Overstock openly criticizing Amazon for not accepting Bitcoin like Overstock does.

Also consider the FACT that Bitcoin is now one of two officially adopted currencies of Japan: Yen, and Bitcoin. There are already 250,000 merchants accepting, or in the process of accepting Bitcoin for transactions, in spite of its temporary shortcomings. Do you have any idea how smart the Japanese are? They made BTC legal tender in April of 2017, when BTC was only $1,000. They are brilliant. Their people will own more BTC per capita than anyone else in the WORLD, and when BTC is $1 million each, do you have any idea how rich the Japanese are going to be? Imagine the Bahamas, or Jamaica, deciding to replace their currency with Bitcoin. The immediate chain reaction of other countries dumping their own currencies and adopting BTC would happen overnight. Remember: a central bank-created fiat currency is worse than worthless. BTC, in every measurable parameter (assuming that it is fungible with tiny, or zero fees), is FAR SUPERIOR to ANY central bank-created fiat. Don’t be surprised WHEN this scenario finally plays out.

As it stands, most crypto experts are predicting a minimum BTC price of $50,000 by year’s end, with a potential upside of $200k.

And that is just BItcoin. Other cryptos, like Stellar Lumens, Ripple, Cardano, and many others, hold huge potential, and are expected to explode this year. And, of course, Ethereum, is another one that WILL continue its explosion.

Bottom line: Cryptos aren’t going anywhere. They are here to stay, and they WILL replace this ridiculous fiat / central bank criminal operation once and for all, and we will ALL be MUCH better off for it.

For those too uneducated/undereducated about the process of obtaining cryptos, there has never been more guidance, educational opportunities, or services that will help you as there are today. Coinbase could not be more simple. Granted, because of exploding demand, they are ONLY allowing new customers with at least $10k to invest. But all that means is that the demand is GREATLY outpacing supply of GOOD crypto currencies. The current prices do NOT reflect that demand. Prices are going WAAAAAAAAY up this year. So, no, it is not “too late” to get in. My god, In January, the all-time highs were 2-3 times higher than they are right now for most good crypto currencies. Bitcoin is selling for slightly more than half the $20k peak it reached a few weeks ago. So, your upside is already defined. Bitcoin has crashed 50% or more at least 6 times previously. Yet, it has always bounced back and reached new highs. Bitcoin is either going to keep going up, or it is simply going to collapse and go to zero overnight. Take your pick. But if you think it is going to collapse and go to zero, you had better be prepared to give a full, comprehensive explanation of how or why that would happen, and to be prepared to provide references. Then explain how you are smarter than all of the billionaire Bitcoin investors. There are HUNDREDS of them. Names you know. Names like Bill Gates, Richard Branson, Jaimie Dimon, George Soros, and many, many others. They are convinced that BTC is going to the moon, and you should be convinced, too. Study, learn, and develop an INFORMED opinion. Conjecture is for idiots who make excuses for missing boats. Don’t miss this boat!

Having said that, reading all of these posts, where people are insisting that it is too complex or too difficult to buy cryptos, makes me very happy, because it ISN’T difficult at all. With so many people making statements like that, all I see are depressed prices lasting longer, allowing me to buy even MORE at lower prices!! YAY!!

When I was looking at buying Bitcoin for $8.00 back in 2013, it really WAS complex and too difficult for me to figure out. So, rather than do something about it, I just waited. In short order, it exploded to $1200.00, so then I was sitting around waiting for it to come back down before I would buy in. When it goes parabolic, it NEVER holds that new record price. It comes back down 50% or more, and then retraces back to where it was. When it got back down to $200 in 2015, I bought several. By that time, Coinbase was available, and it was terribly easy to buy. In retrospect, I should have moved heaven and earth to get in for $8.00. For $8k I could have had 1,000 BTC. I would have $11 million right now, and I would never work another day in my life. If you think $11k per BTC is a lot, what will you say when it is $1 million? “Yeah, back in early 2018 I was looking at getting in at $11k, but I thought the price was too high.” Or, “I would have gotten in back then in 2018, but it was just too hard to buy it.” Think about how dumb you will feel, and how dumb everyone else will think you are, considering that YOU knew about BTC and were being strongly encouraged to buy it back in 2018 at $11,000 each. You will kick yourself in the ass as hard as you can, every day for the rest of your life.

De reply_all Daniel Barber February 17, 2018

BTC projected to reach 40K by early summer, 100K by year-end 2018. Not late at all. Yes, there will be breathtaking period drops until the cryptospace matures and becomes less volatile, as a result. Hold for the long term. Register at an exchange (For US residents, Gemini.com or Coinbase.com – prefer the former). Buy BTC and/or ETH. Reserve some for select alt coins and ICO’s (look for promising fintech companies, for starters). Plenty of ICO tracking sites available. Do the research. Then, store your holdings on a hardware wallet, Ledger Nano S or Trezor. Keep http://www.coinmarketcap.com up in a tab on your computer and follow it daily. Study the top 50-100, the historical tab, the charts. Really study the site by clicking on all the tabs. A lot of important information can be gleaned from the social media links like reddit and bitcointalk, both accessible via the Social link and/or Announcement link. Subscribe to http://www.coindesk.com for news alerts.

Chris Merriam-Leith reply_all Daniel Barber February 23, 2018

Daniel, your statement above makes about as much logical sense as making this same statement in 1995 during the early stages of the Internet expansion. Do you believe that if you invested in Amazon, Google, Ebay and may others during the mid-1990’s that you would have been late to the technological revolution?

Your statement above proves that you do not understand the fundamental technology underlying blockchain and just how much of a radical and disruptive paradigm shift this represents. This is going to be 10X larger than what we have seen over the last 20 years. This fact that you are having this conversation means you are an early adopter. This new paradigm shift is at least a 20-year new tech cycle. Wake Up!!!

Deepak Joshi February 14, 2018

I would like to answer the question #2:

I have invested about 1% of my net worth in crypto. When I tell my friends or family members about investing in crypto, they are not yet convinced to invest in it as its not regulated and not backed by government (also some of them think its illegal). I would like to increase my investment in crypto, if they are regulated and backed by government.

Rob reply_all Deepak Joshi February 15, 2018

Well tell your doubting relatives that the IRS is already taxing it. How can they be taxing an “illegal” currency?

Carol February 14, 2018

Put $ 1000 in Litecoin and am up just a little. Didn’t wager more than I could afford to lose

WeaverDreams reply_all Carol February 17, 2018

Carol look at the history of litecoin and who is running it and you may change your mind. Ethereum and bitcoin are better. Research some of the other all coins to because some of them are going to be big. 99% of them are scams though so you’re going to have to do a lot of research. Who started it? Who is running it? Does it provide an answer to solve a big world problem? Who is backing it? This will help you decide which alt coins to invest in.

Chris Merriam-Leith reply_all WeaverDreams February 23, 2018

Hey WeaverDreams, she wasn’t asking for your opinion. Yes, Bitcoin and Ethereum are good cryptos, but they are also both very different. But Litecoin is also a very good crypto. You have absolutely no basis to support your claim of one being superior to the other at least between Bitcoin, Ethereum, and Litecoin. As for all other Alt Coins, buyers beware as most 95% will fail similarly to the 95% of Dot Com companies that crashed and burned during the 1990’s. This is / will be known as the shakeout phase.

Waynett Sobers February 14, 2018

1) No
2) Yes, I own cryptocurrencies.

Bill Moss February 14, 2018

There are always stories like that for just about everything. Right now I don’t know enough to get into cryptocurrency. I’m waiting for your recommendations.

James Carter February 14, 2018

MAKE THE PROCESS MUCH MUCH MUCH MORE SIMPLE-ELIMINATE WALLETS-FIND BLOCKCHAIN STORAGE
IN ONE SIMPLE STEP. i HAVE TRIED SEVERAL TIMES TO ENTER INTO THE CRYPTO WORLD ONLY TO BACK
AWAY DUE TO ALL THE COMPLEXITIES

Taber Ellis reply_all James Carter February 17, 2018

Eventually it will be much simpler. And the price will be much higher. The complexity of it now is to the advantage of those willing to learn and take the risk early.

WeaverDreams reply_all Taber Ellis February 17, 2018

Good point!

Chris Merriam-Leith reply_all James Carter February 23, 2018

Yes, and they should have also simplified the Internet in the early days be inventing Facebook 10 years earlier. Innovation is an evolutionary process.

Joan February 14, 2018

I know of no one who has invested and gained any profits from Bitcoin.

I personally have invested in them and so far, I have not gained because I bought at a higher price. I will say that the
process for buying and holding the bitcoins is far more complex than on line banking. There is virtually no help available from Coinbase and the wallet holding companies. Videos on the internet are helpful, but far from complete
in dealing with issues that are not clearly explained. It is like putting together mechanical things with directions lacking information on the little things that make it smoother. If you have experience in putting things together, then projects are easier. The same is true if you have good computer experience like most younger people have then it will be much easier. If you are to set up a service then good telephone help and “thorough” videos for reference with make a big difference. People don’t go into it, because it is so difficult with all the various types of verification procedures. I still believe that the story has not finished. I believe that there will be more gains.

Vinh February 14, 2018

To answer your answer question
1) I’m into btc and altcoins. However, being new at this and seeing the extreme volatility makes me wonder weekly (if not daily) when I can get out with my investment intact. I consider this regardless of how sound a project is simply because the future is still not certain for crypto currencies.
2) I have not and will not recommend crypto currencies to any of my friends or families because it is too risky. Maybe this is a fad. I don’t yet trust that crypto currencies have a future

De reply_all Vinh February 17, 2018

It’s not a fad. In 2015, Microsoft partnered with antshares, rebranded last year NEO. #7 in marketcap at 8.8 billion, one of several Microsoft partnerships. Starbucks is considering accepting Litecoin as payment. IBM recently partnered with Stellar. JP Morgan partnered with Zcash. Intel partnered with France’s Ledger hardware wallet company. The Arizona senate recently voted on senate bill 1091 to accept bitcoin as payment for income taxes by as early as 2020. Overstock.com accepts multiple cryptocurrencies. Deloitte and Touche, and Ernst and Young have many blockchain company partnerships. Ripple has been adding financial institution partnerships worldwide for several years. To name a few examples of why cryptocurrencies are not going away.

John McCarthy February 14, 2018

Haven’t heard of anything like the Bel Air story. The “currency is not backed by anything I can see. Banks, governments other holdings. Also bitcoins are very volatile. There doesn’y appear to be a safe way to play them.

Mary reply_all John McCarthy February 15, 2018

What do you think is backing the USD????
I wanted to put a small amount in August 2017. The process was so difficult I never did. Am still watching what is going on.
I have also seen that the US Gov’t might be considering using cryptocurrency instead of paper currency. That way they can make so we cannot conceal $$ received..

WeaverDreams reply_all Mary February 17, 2018

If the US government tries to make their own crypto currency, nobody’s going to use it. That’s one of the reasons why crypto currencies were created in the first place. To be decentralized, And not under the control of one central authority like the US government.

Cryptos are a huge improvement over the Fiat currencies the world currently has. But putting it into the hands of the people who control the federal reserve just flies in the face of sanity. Seriously, the people of the world are not going to allow the government and the current banking system to start controlling the crypto currencies – it’s an oxymoron. It’s going to be more revolutionary then the Internet. It’s going to eventually open up the whole world and allow people who used to never have a financial chance to level the playing field. The world will become everyone’s oyster.

Rob reply_all John McCarthy February 15, 2018

The USD is “backed” by a group of banks working with our government printing money out of thin air…..all day every day. As long as most everyone is ignorant of that fact and believes in the charade and that our economy is bulletproof we should be fine. After that…

WeaverDreams reply_all Rob February 17, 2018

Great point! Today the banks just simply create money out of thin air digitally. They’re only required to hold 10% in reserve. If you deposit $1k, they will loan that $1k out 10 times over and charge interest on it. What is wrong with this picture? Especially when you look at the government just creating money out of thin air to pay bills and create more debt. It’s time to join the 21st-century and get rid of Fiat currency’s once and for all. Along with the organizations that created them like the federal reserve. I don’t care what anyone says about Ron Paul. He was right and the federal reserve needs to be shut down.

J. Howard Carr February 14, 2018

Re; Bitcoin – One of our sons (age49) has ridden the Bitcoin roller coaster. All I can tell you now is they are worth less than they have been. I am 82 and have experienced the various market swings since the early 1970’s; most of which to my harm. I have also studied and tried a multitude of reasonable investment and “gee-whiz” strategies; also mostly to my harm. Even so, we soldier on, and a sign on my desk reminds me, “I’ve survived damn near everything!” In the end I’ve discovered a little detector within me I call, “My Crap Detector” which sounds its alarm when I am being motivated by either of two little Cortesans. “greed” or “fear.” Now that I’ve learned to recognize these two and ignore their temptation I am not “infected” nearly as often with harm. I’ve got enough to meet our needs if we both live to be 100+. Why would I put that to any more risk than necesssary?! The world can keep its cryptos!

Filthy Witch reply_all J. Howard Carr February 16, 2018

You sound like Warren Buffet, who didn’t invest in Amazon or Google either. A search algorithm? What good is that?

Now Amazon is worth more than Macys , Target, and every retailer in the world, and Google is the world’s biggest company. Now, I’m not suggesting you should invest in something you’re not comfortable in, but it’s important for you to understand that not every coin is merely an asset. Some of these coins are really super-computing projects to solve 50-year-old banking problems. There are fair and balanced programs on NPR you might like that can teach you all about it.

William Larson February 14, 2018

I believe that crypto coins are the worlds largest Ponzi scheme. How else can money be generated out of thin air. It depends on fools buying into it. This is apparent when the value shifts precipitously from one value to another. It is worthless in general commerce. The only real value in block chain is to haul the engine out of my sailboat. To bad Barnum is dead.

Elliott Ring reply_all William Larson February 14, 2018

Mr. Larson, I believe you are correct. Out of thin air, how in the world did this happen. I saw a crytpo go up over 1,000,000%. I do not think that is possible.

pat reply_all Elliott Ring February 17, 2018

Many crypto’s are a genious set up pyramid system and many a even a ponzi scheme but not all,wich means the early adopters get filty rich as long as the vehicle attracts more buyers,the only question is how long will they exist if like I think BTC will survive another 10 years it could get to $1 million a coin ,it’s only simple mathematics.
The biggest flaw in crypto’s and certainly for BTC is that 5 million coins went lost,I mean lost in the ether abstraction of the stolen ones,If another 5 million BTC go lost in the next ten years there will be only half of the by then 20 million coins mined left ,the last 1 million BTC will only be able to be mined by 2140 ,so I predict that BTC will eventually distroy itself and never survive the time needed to get all the coins mined,the crypto technology will survive and other crypto’s are set up to overcome the flaws inBTC and replace it.
There is nothing backing any crypto but the value will be in adoption and advantages in use like with smart contracts cutting out many expensive and useless middleman,fiat is only backed by unsustanable piles of debt and manipulation ,the only real money is gold/silver but not easy to use in our modern economy of creation of bubbles and ponzi schemes ,so both crypto’s (selective)and gold are good against fiat.

Rob reply_all William Larson February 15, 2018

Speaking of Ponzi schemes…you need to read “The Creature from Jekyll Island”.

Our government printing presses never stop…they have invented a cool complex word for it to make you believe it is official and too complex to understand. “Quantitative Easing”.

Not saying crypto is the end-all-be-all but the current system is a scam…its just alot of people have a collective interest in keeping it up…so it works…for now.

WeaverDreams reply_all William Larson February 17, 2018

I want to answer your question how else can money be created out of thin air:

THE FEDERAL RESERVE. The banks do it every day. ( Fiat currencies.). They are not backed by anything. The only reason there are “worth“ anything is because people think they are. One of these days everything will go crypto and all the people who thought a piece of paper not backed by anything and issued by a country saddled in debt that will never be paid back will be standing there in shock going “why won’t you take my US dollar?”

Len February 14, 2018

What’s holding me back: I believe that the tech – blockchain – will succeed, and continue its disruptive force. My challenge is that I dont believe governments will merrily hop on board with Bitcoin or most, if not any of the others popular today. I have a feeling that the US will get around it with their own version, the eat your cake and have it too version.
I’m glad you asked because I want to get feedback from experts on this notion. what do you & this community think?
Thanks, LG

C King reply_all Len February 15, 2018

Blockchain will succeed, of course, but any company can come up with their own blockchain for whatever purpose they need. 99% of all alt coins have no use case, even when they claim to have an active usage. I personally have friends in the banking sector, their banks are coming up with their own usage for blockchain and wouldn’t need to invest anything into other’s blockchain tech. Where then does the value lie in these coins?

Rob reply_all C King February 15, 2018

The value obviously lies in eliminating the banks and the BILLIONS they charge poor customers for electronic transactions that cost them virtually nothing. The value is people would rather keep their collective billions rather than have it funneled to a wealthy few that run the banks.

Ann Anderson February 14, 2018

How is the justification for bitcoin different from Gold/Silver investing? They certainly haven’t had the same market success. Can you explain why?

Dave February 14, 2018

1: NO
2: NO

I haven’t fooled with bitcoin because at every point along the line, it could’ve crashed and lost every penny.
After all, bitcoin has NO actual value, it doesn’t even exist in the real world. I expect it will return to it’s actual value at some entirely unpredictable point in the future, and damned if I’m going to watch my money disappear like that.
All it’s going to take is one hacker to crack the code, and poof, it’s all gone.

CryptoDude reply_all Dave February 15, 2018

Does math exist in the real world? Can you touch math? Can you hold 1+1 in your hand? No? Well I guess math has no value then. So I guess you’re right about crypto, as it’s based on mathematical algorithms. Not real at all.

That would have to be a really good hacker. I mean, there have been hackers breaking into other systems on the internet for years, and the internet didn’t go “poof”. So there’s a hacker out there that can do that to Bitcoin? Do you think this hacker might have been trying to hack Bitcoin every day for the last decade along with thousands of other hackers who want to rob the system blind? And what does this hacker get in return when he finally steals all the Bitcoin and its value drops to zero suddenly?

Might not this hacker’s time be better spent running a node and mining Bitcoin?

By the way, any money you have in a bank is held on computer systems that are MUCH less secure than Bitcoin’s blockchain. Much easier for a hacker to make it go “poof”.

Suanne Gerard reply_all CryptoDude February 17, 2018

Of course you can hold 1+1 in your hand. The only question is 1+1 of what. Can you hold in your hand ANYTHING AT ALL representing Bitcoin? Its most attractive feature is the fact that it is not taxable but that is because it represents absolutely nothing in the

Rob reply_all Dave February 15, 2018

Every single company on the stock exchange “could” have gone poof as well. Some do some don’t. Enron had billions of value..until it didn’t.

Newsflash..the millions of “miners”/computers out there mining bitcoin? Those are the computers that validate every transaction and secure the network.

The code is right out there in public view for the past 10 years. Go for it.

WeaverDreams reply_all Dave February 17, 2018

Wrong. You’re throwing the baby out with the bathwater and you’re going to regret doing it. Take some more time and research this subject. It’s not just about the crypto currency. It’s about the platform. This is a once-in-a-lifetime opportunity. If you think it deserves a little bit more thought?

William February 14, 2018

Started 10 months ago with about $1000 – initially Bitcoin and Ethereum. I have since pulled my initial
$1000 plus $1000 in profits and am currently in 10 cryptos worth $ 15,000.

Jeff February 14, 2018

We looked at Bitcoin in 2014 right before its first bubble, it didn’t make sense to me then and it doesn’t now..Having
said that sure would have loved to buy when it was sitting around $500.00.

Rob reply_all Jeff February 15, 2018

$10 000 – $489 make sense to you today w bitcoin price rising yet again? Profits make sense….even if you don’t believe in bitcoin.

WeaverDreams reply_all Jeff February 17, 2018

Right now it’s pretty good time to buy. Don’t be so quick to say that it’s over. Look at what some of these other people have commented will do some more research because you have not missed the opportunity at least not yet

Robert Lounsbury February 14, 2018

1. No

2. Do not know enough about them to invest.

Dieter February 14, 2018

Ahoy Martin,

It was a matter of choosing either cryptos or marijuana, I did not think I could handle both. Not financially or stress wise.

Crypto currencies will soon get sorted out so that there will only be a handful left, one or two main ones and some for narrow special uses.

The volume of business in the hemp industry is staggering in variety as well as size already and will certainly balloon as more of the world accepts the everyday use of marijuana.

That was my reasoning for dropping the mystery coin business.

WeaverDreams reply_all Dieter February 17, 2018

The marijuana business is just a drug business. It’s not a potential he level the playing field platform that a crypto currency has the potential to be. I get it you like marijuana. I don’t have a problem with it except that it takes peoples ambition away.

Glen Austin February 14, 2018

We never get so lucky to have something like that happen to us. I would rather earn my wealth than win it “lotto style”. Most lottery winners are flat broke within 10 years, and divorced in two.

The Bible teaches it. Wealth that is suddenly given to a person is spent quickly. Wealth that is saved from hard work and saving lasts (provided the government doesn’t steal it through currency devaluation).

What is money really? Money is “stored up work”. Someone labored to earn that money. Someone saved for it. And yet, the government perverts it, by devaluing the dollar, flooding the money supply, offering debt, offering lotteries, and destroying everyone’s savings.

I had thought about purchasing Bitcoin, but it was very speculative. Now the plays would be in Ethereum or Ripple because they are the emerging cryptocurrencies, but in the end, it’s really just gambling.

CryptoDude reply_all Glen Austin February 15, 2018

Gambling is risking money on the absolutely random outcome of dice tosses and card shuffles.

Investing in cryptocurrency (or stocks, etc. ) is risking your money on something for which information is readily available.

It’s really not that hard to gain a basic understanding of what’s happening. You can even get on Steemit.com and learn a lot about cryptos WHILE earning crypto just for using social media.

Kevin February 14, 2018

I still do not know if it is the right decision but I bought 200 shares of GBTC just to have a little exposure. My son with the MBA in Finance thinks it is not a great idea but I figured I can sleep better knowing I have a tiny bit in the sector.
I wish you could give us other ideas on ways to get in without a new account.

Nathan February 14, 2018

Substitute “tulips” for bitcoin and you would be called nuts. The Dutch were known as smart investors until they were fools. We are headed down the same path.

Roland Wilhelmy February 14, 2018

2) I remember the history of the tulip mania. I’ve been investing for 50 years and if I don’t understand it I don’t buy it.

Joey reply_all Roland Wilhelmy February 14, 2018

You don’t, as Tulip mani never really happened:
https://www.smithsonianmag.com/history/there-never-was-real-tulip-fever-180964915/

WeaverDreams reply_all Roland Wilhelmy February 17, 2018

Do you have a cell phone? Do you understand it?

Marilee February 14, 2018

My reaction: is this tulip mania for the internet age?

Francie Kipling February 14, 2018

Get Rich Quick stories are “a dime a dozen” for every investment area. My ex-stockbroker brother called me to tell me about Bitcoin 2 months ago, but I declined. He weathered the recent up & down and said he was “in it for the long-term”, so is continuing to hold. I believe that the only winners are the early adopters, as in any pyramid scheme or new business venture.

Jack February 14, 2018

i dont buy things i dont fully understand. cryptos fit that description. also, i think they will be regulated into something “uneventful” eventually, and/or partially outlawed. we are already seeing some of both.
i think the “historic gains” days of cryptos are largely over. there will be gains in them, but nothing like the icebreaking and recordbreaking event called “bitcoin”.
that is my opinion.

Frank Binder February 14, 2018

I do not know what the point of your column is. Your information is ancient and very similar to a lot of what you report after the fact. It does us folks trying to get positive results in the money game very little help when we are told “if you had done such and such, you would now have no need to follow any recommendations of anyone” How about telling us something that is current and not years late.

WeaverDreams reply_all Frank Binder February 17, 2018

This article is not years late. Nobody even heard of crypto currencies for the most part until the last six months anyway. It’s just getting started and it is here to stay. Problem is that 99% of the crypto’s out there are going to go to zero. Only a few will take off and be widely adopted. If you research it now you could understand it and get involved even if it’s just a small amount and it could be life-changing. But the hardest thing to change somebody’s closed mind.

lonnie February 14, 2018

looking for a ligitement exchange and crypto’s to choose from

Rik reply_all lonnie February 14, 2018

Binance, Bittrex and Kraken works just fine.

Wayne February 14, 2018

My investment adviser says cryptos aren’t worth or backed by anything. 99% of them will fail. There are 100 or so out there now.

CryptoDude reply_all Wayne February 14, 2018

Your investment advisor is an idiot. Yes, many will fail. But the ones that survive will transform the global economy and make some people very rich. I suggest you do your own research.

Fred reply_all CryptoDude February 15, 2018

When one person gets rich some other poor schmuk gets poor. Ask the casinos how they get rich. There are always winners but more losers. Funny how alternative money always gets valued in government backed money (dollars, francs, pounds, etc.).

Rik reply_all Wayne February 15, 2018

There are over 1000, you’re investment advisor should just admit he doesn’t understand cryptocurrencies, instead of saying 99% will fail.

Some will definately fail, especially those that are scam but saying 99% will, is just someone pulling a number out from his ass.

Rob reply_all Wayne February 15, 2018

Your investment adviser wants to keep you on his treadmill of commissions. He makes nothing if you make money in cryptos.

WeaverDreams reply_all Wayne February 17, 2018

There are 1500 out there. Your investment advisor does not recommend them because he’s not going to make a commission on them

Larry February 14, 2018

all the people on coinbase have not paid taxes on bitcoin what do you think the goverment going to do to bitcoin

Rik reply_all Larry February 14, 2018

Nothing, more than regulate it. They can’t stop it.

Rob reply_all Larry February 15, 2018

False. Some have not paid. Also the IRS just went to court and won access to a large portion of Coibase customer information. If the IRS can penetrate a Swiss Bank account rest assured they will get access to crypto traders profits.

George FRANKL February 14, 2018

I would rather go to a posh Casino where I could dine, dance and socialize and have some fun while playing the machines.Digital currencies are nothing more than a crap shoot, a throw of the dice.I don’t see any legitimate reason to support the trading of bitcoin and its cousins.Gangsters and drug dealers seem to be the main beneficiaries of digital currencies and I am loath to support their activities.

Rik reply_all George FRANKL February 14, 2018

Clearly you dont understand what cryptocurrencies are.

Rob reply_all George FRANKL February 15, 2018

Right, because gangsters and drug dealers have never used US Dollars. I guess you better burn every US dollar you possess then because most have already cycled through illegal activities. Barry delivered pallets of USD to a terrorist regime in Iran. Good grief..what an irrelevant statement. Criminals will try any method they can….some will get away with it and some will not but it has nothing to do with the larger benefits and purpose of crypto…or USD for that matter.

WeaverDreams reply_all George FRANKL February 17, 2018

How is it that you don’t see the connection between casinos & gangsters?

Ashby Harris February 14, 2018

The answer to both your questions is NO

Ashby Harris February 14, 2018

I have, like everyone else heard of bitcoin. The difficulty is finding the right currency and knowing where and how to park it so that it loses none of its value. I think it is a risky business and those with the knowhow seem coy about sharing their knowledge. I have read many wonderful stories about making a great deal of money, but nobody tells you about the losses you can suffer.

De reply_all Ashby Harris February 17, 2018

If you want success badly enough, you will depend on nobody to do the research but yourself. Invest only what you can stand to lose. If you can’t stand to lose any amount, as you have stated, then this is not for you. But to be sure, if you dedicate an hour every night to reading, listening, watching, learning, and applying, you can be successful beyond your wildest dreams. Start here: https://www.getintocrypto.org/steps/

Bob Schubring February 14, 2018

Bitcoin is an example of a market that remained irrational until it ran out of gamblers willing to push the price higher. Dick Nixon understood the real value of a dollar: Tricky Dick could send revenue agents to your business to demand dollars…if you didn’t supply them with the required number of dollars, Tricky Dick would confiscate your assets and throw you in the pokey. That’s what gave US dollars value…we needed them to deal with Nixon’s bullying, and the bullying of every politician since.

You can’t use Bitcoins to pay the IRS and stay out of jail.

The late Larry Edelson had that absolutely right. If it won’t pay your taxes to keep you out of jail, Bitcoin is not money.

Now what happens when the IRS says a wallet full of Bitcoins is worth $X and demands 25% of that in taxes, but I can only sell the wallet full of Bitcoins for 1/8 of X dollars? I just got forced to sell other stuff and escrow it, while the IRS and my lawyer argue about the value of the Bitcoins and the tax owed on them.

It looks to me like a puerile exercise in futility, combined with a lot of scary risks. That’s why I stayed out of Bitcoin.

Filthy Witch reply_all Bob Schubring February 16, 2018

It’s an imperfect analogy. You can’t use a bar of gold to pay your taxes either. In fact, you can’t use a bar of gold for anything. Maybe at the pawn shop for a lot less than its worth.

So you buy a house with cash and some jewelry. That house and jewelry goes up by 40% over a few years. Do you owe the government that difference? No, they’re your assets. You own them on the internet. What does that have to do with the IRS if I didn’t covert it back to dollars? Not a thing.

What do I buy coin stocks for? Contrary to popular belief, that’s money I can use all over the world, for anything from hotels to cars. Do you claim gains when you travel to Europe and exchange your dollars to Euro to transact? I think not. I don’t think people realize how much freedom this grants them.

Udigwe Chimobi February 14, 2018

Do not be too excited about the value of bitcoin now or return on investment till date. The risk is enormous. Those who bought at 17500 dollars in December of 2017 are not so happy right now.
Having said that, it is worth being part of the ecosystem. It is not for the lily-livered though. I started investing and trading bitcoin and altcoins in 2016. So far, I have made some good gains here and there, but I have also lost big time due to inexperience, hacking and other vices in the industry. It is an industry that should be followed with a lot of caution.

The money that should be invested in crypto should have no other short term use plan and it should be money that the investor is willing to loose. Patience, courage and optimism are required in high doses.

When advising people to invest in crypto, do it with some restraint, please. Make them aware of the enormous risks that the industry is fraught with. There are many ways to loose your investment apart from devaluation: simple transaction mistakes, wrong addresses, phishing sites, hackers, ponzi schemes, scammers, forgotten passwords, lost hardware and so much more. The world of Cryptocurrency and blockchain is what I choose to refer to as an university of its own.

I welcome the fact that you are now part of the industry bringing along your analytical mind and fearlessness. Welcome and bravo! It takes a great mind to do what what you did in the industry albeit controversial. I wish you the best as you journey with us in the industry. I would advice that you become an insider to get richer perspectives. Best wishes.

Gary Reviczky February 14, 2018

I wanted to invest $2500 in bitcoin when it was $100 each. My wife told me I was crazy and threatened me if I foolishly wasted our money on that scam. My marriage of 45 years is worth more than the bitcoin but it still hurts to think about it.

allan Ewart February 14, 2018

I bought 100 bitcoins for 6 cents each in early 2011. I sold them a few months later for $4 each, just before they shot up to $1200. I was very disappointed, but then reached the conclusion that someone may have copied the idea. Sure enough, that’s when I discovered Litecoin and the others that were first forked off of the Bitcoin blockchain.

I’ve been in and out of cryptos ever since, and I’ve also mined Bitcoin in the early days, 5 BTC in fact. But they’re all long since gone.

There seems to be many people who believe that it’s too late to get into crypto. But I don’t share that view because this is just the beginning. It’s still very much in infancy. Blockchain technology is going to revolutionise many industries, and that will include the tokens associated with them. The infrastructure will gradually be put in place and this will facilitate widespread adoption. Regulation is also a factor, but I think it’s the only way to sacrifice some decentralistion for the sake of public peace of mind. But in the meantime there are many projects that are working towards decentralised applications, and these will be very important for the future of humanity.

Don C. February 14, 2018

A really smart guy (I forget which one) told me, “Don’t buy anything that you don’t understand.” For a brief moment, when bitcoins were selling for around $17,000, and the hypsters were screaming that bitcoins were “easily going to $50,000,” I was tempted to take a chance with a few thousand of playing around money.
Some years ago I was lured in by a Silver Hypster, who told me I should jump at the chance to buy silver dollars for $37.00 since, “Silver was easily going to $50.00.” Making a stupid mistake is perfectly human, and possibly even rational; repeating those mistakes can cause bankruptcy. I don’t understand bitcoins, so I’m taking a pass.

CryptoDude reply_all Don C. February 14, 2018

That’s very smart. It would be stupid to invest in anything you don’t understand.

That’s why I try to understand crypto as best I can. And it turns out, the more I understand, the more I realize this is only going to get bigger.

Rob reply_all Don C. February 15, 2018

True..it wasn’t going to $50k last year (too much)…but it might get to $40-$50K this year. Go back and look at the bitcoin charts. Lots of ups and down but it has pushed back through $10K today and is likely going higher on its long term (near 10 year trend now) of higher highs.

Yvonne Keady February 14, 2018

Hi Martin,

I am a subscriber to several of your publications and do not usually engage in answering requests for comments but in this case I have decided to put in my “penny’s worth”.

Crypto currencies to me are wide open to abuse, hacking, theft etc with nothing tangible to hold such as other safe haven investments. No authority to report to etc. Unsafe.

Rob reply_all Yvonne Keady February 15, 2018

That is because the skeptics who don’t want it to succeed or who have staked their reputations on it failing (since 2009) have alot vested in its failure…so they scream they hacks from the roof tops to validate their opinions. Sure you have to be careful but there are methods to largely avoid most of these pitfalls. Start reading.

Meanwhile that $50 bitcoin they told you was going to zero 7 years ago? Is pushing back up through $10 000 today.

CHARLES February 14, 2018

CAN YOU SUGGEST A FEW CRYPTOS WORTH LOOKING AT? THANKS

Filthy Witch reply_all CHARLES February 16, 2018

Didn’t you see their Weiss report on their favorite cryptos? They cited a few in great detail. It’s all over the web.

I would recommend becoming well-versed in the top 25 coin projects on CoinMarketCapital, a public market watch.

Lynn H. February 14, 2018

Hi Martin,

Yes, my son is in crypto’s and I encouraged him!

I wanted to get in too, last Fall, but I don’t have a smart phone and therefore I don’t have the ability to set up an account (requires taking a pic of driver’s license and a few other steps for safer authentication). I don’t have time to learn how to do all that and I’m overloaded with other things, but YES… I’ve heard and read many stories about the huge gains in crypto’s and people buying dream homes or paying off mortgages, etc. It would have helped me so much if I had been ready to jump in last Fall. I’ve watched video’s on how to set up a crypto account, etc., and I wanted to just buy and hold… hold… hold! I know this trend is still young and there will be many developments along the way— so interesting to watch!

Thanks, Martin, for your ratings. I’m hoping my son will use them in the future. –Lynn H.

Emily February 14, 2018

1) yes.
2) yes.
We bought a bunch when they were around $10. We’ve sold most of our BTC along the way in exchange for a paid-off house and car, conventional stocks, and funds set aside for our son’s college expenses. However, we still have a lot of BCH as well as some Ethereum.

Rob reply_all Emily February 15, 2018

Impressive! But you know you are supposed to HODL (hold on for dear life) right;)

TW February 14, 2018

The bitcoin for pizza story is well-known. It almost rates up there with the natives who sold Manhattan Island to the European settlers for a few trinkets.

I have taken the plunge into cryptocurrency of Nov 2017. I’m probably around breakeven. (Except when you factor in the cost of the newsletters to give me recommendations on cryptocurrency – then I’m squarely in the red right now.)

Jim February 14, 2018

Farmerji
Invested $5000 when bitcoin was around $4000 Bought small amount of bitcoin and 6 other coins Account went to $28,000, then down to $12,000, and now is at $16,000

Am in for the long term Fun to watch

Bought through Kraken and did not find process difficult

CryptoDude reply_all Jim February 14, 2018

Make sure to transfer from kraken to your own wallet and make backups of your private keys. Otherwise, your crypto belongs to kraken or any hackers who gain access.

Ralph Hallock February 14, 2018

I agree with W Larson. In my case, at 92 it is too complex and scam like.
Ralph Hallock

Chris Merriam-Leith reply_all Ralph Hallock February 23, 2018

Hi Russ,

Unfortunately, your opinion is 100% wrong, but you are entitled to your opinion since your claim is not supported by any facts whatsoever.

Also, your statement clearly demonstrates the degree of your economic illiteracy, and second, it demonstrates that you have no understanding of the fundamental technology that makes up blockchain technology.

Rik February 14, 2018

Got into crypto last year march with an initial $5k investment since then i have multiply it by 32. i have taken out my initial and some and still hold a sizable amount waiting on the next bull run.

Crypto is here to stay.

Russ February 14, 2018

Bitcoin is fairy dust. Yes I wish I was aware of it and could have made money but it is pure speculation and gambling. Not my style. It will be remarkable if that bonanza continues.

Chris Merriam-Leith reply_all Russ February 23, 2018

Hi Russ,

Unfortunately, your opinion is 100% wrong, but you are entitled to your opinion since your claim is not supported by any facts whatsoever.

Also, your statement clearly demonstrates the degree of your economic illiteracy, and second, it demonstrates that you have no understanding of the fundamental technology that makes up blockchain technology.

W G Fredericks February 14, 2018

No
No

Don’t know how, quite skeptical.

Own 500 GBTC

Greg Durocher February 14, 2018

I’m not of the right age to appreciate any kind of currency that exists only in computer memory. Even our paper fiat has some tangible value – if only by the ton as scrap! But what is the value of all the zeros and ones if another Carrington Event hits us and fries our electronics, as nearly happened 6 years ago (https://www.space.com/26669-huge-solar-storm-2012-destruction.html)? What about a rogue nation detonating an EMP over Wall Street – an increasingly likely event as time goes on?

Sure, some folks got very rich very fast with Bitcoin. Early Enron shareholders did the same thing. People win lotteries too. But does one invest in lotteries? I don’t think so!

Rick Gavey February 14, 2018

Yes, I’ve heard the pizza story many times.

Yes, I am invested in Bitcoin, Ethereum, DASH, Xcash, Cardano, Salt, NEM, Stellar, Qtum and Ripple … about $27K total. I’m in for the long haul !

Morningstar.... reply_all Rick Gavey February 25, 2018

Nice to know that there’s still a very low percentage of humans out there that actually recognize there only a few currencies out there and you got them right on the money good job my fellow partner…. just give it some time and the hckers will go bankrupt and have no one to back them up cuz only thing that is going to happen is the IRS is going to do an odit on anyone they think is doing fraudulent activity very easy to spot and notice aspecialy when your the victim being robbed and them not Knowing crypto currency is so traceable, every TRU Bitcoin is accounted for on any account and once these hackers get nailed there going to owe every penny back……But any ways keep your head up your going to have a very wealthy future God Bless….

Teresa Cherin February 14, 2018

Personally, I think most people who are new do not know how to buy and store them safely. We have heard of all the hacks and hundreds of millions stolen from the exchanges, therefore we know that you can’t leave them on an exchange. So we research and find we have to buy a wallet and go through tedious process of cold storing them. And NOT losing the private key! Also, wallets are limited to certain coins. We have heard that many, if not most alt coins are actually scams or ponzi schemes so we are not sure who to trust even though many of those coins result in huge profits if you are an early adopter. (I personally don”t want to support ANY scammers even for the money-just as a matter of principle.) But you can lose big if late to the game. We’ve heard that banks try to harass you if you use any of their services to buy the “coins” -And now you can’t even use your credit card. Its confusing and difficult to wade through everything just to figure out how to buy and safely hold. Not to mention the uncertainty that the govt, banks and regulations will halt all the progress and momentum of the “currency” part of cryptocurrency. Of course, they are jumping right on the blockchain technology and will probably highjack the currency part too. Look at the countries creating their own digital currencies…centralized and controlled by the central banks-exactly opposite of what cryptocurrencies were invented for. Why allow cryptocurrencies that the individual controls when you can just create a digital currency that the state controls completely? Don’t even mention the Federal Reserve and the talk about central banks and big banking not having total control over the citizens and the money supply, do you really think they will give up that power??? This is what is going through people’s minds: 1) greed=”how do I get in on this bubble?” 2) doubt=”what if the govts regulate or shut this down?”

CryptoDude reply_all Teresa Cherin February 14, 2018

The US government has done such a great job regulating the illegal drug market, I’m sure they’ll also easily be able to control the import and export of a currency that anyone can carry around in their head.

Evan hagan February 14, 2018

Found it to complex to purchase and that made me think how hard would it be to get out. Just don’t know enough Looks like l’m paying for my ignorance Would like to get smarter.

James Maurer February 14, 2018

I want to see the Trump re boot of the dollar before considering the world of Crypto.

John Miller February 14, 2018

What about the guy from the U.K. Whose girlfriend got pissed about him mining in the early days of bitcoin. She was tired of the noise of the computer running all day and night. He quit mining and forgot about his 7500 coins worth 5 cents each. He accidentally threw out the old hardrive contains the coins. Hardrive ended up in the bottom of a landfill. All gone!!

Roy February 14, 2018

Crypto currencies were the threads used to make the emperor’s new clothes. No thanks.

Bruce February 14, 2018

1) No

2) Yes, i purchased a small dollar amount of ‘BitCoins’ in 2016 & basically forgot about them. Now with the news of the dramatic increase in value, its time to check the balance & convert to dollars, havent got around to it, need to recall PW & a/c info ….

Elvis Smith February 14, 2018

I have thought they were the riskiest of investments and I don’t know how and where to invest in them.

Al B February 14, 2018

In my comfortable retirement I think Cryptos are definitely NOT for me (us).
I don’t trust them, or understand them or have any desire to change that.

E. Roy Birkett February 14, 2018

As I enjoy my 90t h year I am a holder of some 8 crypt0currencies and I am trying to have my 8 grandchildren, some of whom are new to the job market, but, they must get on this unstopable new vehicle.d

CryptoDude reply_all E. Roy Birkett February 14, 2018

Good for you! I hope to be just as open minded if I ever reach your age!

Chris Merriam-Leith reply_all E. Roy Birkett February 23, 2018

Hi Roy,

Just be very careful. This is a very high-risk domain, and at your age, you cant afford to take these type of risks. Crypto is very complex and still in the early stages of development.

David Dahlstrom February 14, 2018

I struggle with intrinsic value when it comes to Bitcoin. Comparisons to Gold or Silver, that have other uses and have a history of being used as money, seem silly.

I have done well investing on my own and might have risked a small amount on Bitcoin but….it always did and still does, feel like pure speculation.

When I buy a stock, or invest in real estate, or in scarce commodities…well, these are things measurable against history and while also, sometimes, volatile, will always have some intrinsic value. They all have to be mined or require other, real, corporate, team-effort to produce, or add value. This is added-value that I can understand and feel comfortable owning.

Anne February 14, 2018

I’ve read of early investors in Bitcoin who are very rich now, but don’t know anyone who even mentions it in everyday life.
I started buying Bitcoin and a few others this past year on a small scale. I follow the advice of Teeka Tiwari of Palm Beach Research because he is very knowledgeable, has excellent training videos on cryptocurrencies, and recommends investing very reasonable amounts.
I enjoy being in cryptos but find it confusing to keep track of the various exchanges and wallets, and to have to keep converting crypto amounts into dollars for my own information.
I think the useful coins will survive and grow because they fill a need.

john February 14, 2018

Not a very user friendly currency to buy. very complicated, and if change your phone number like I did, you can not log in to get your coins, so I lost that money.

Thomas Ramsfield February 14, 2018

I have not personally heard any stories re cryptos. I am not involved with them and I do not intend to get involved in any for the foreseeable future. I think their price is based on nothing and anyway it is represented in numbers of Dollars, the price of which is also based on nothing. I don’t want cryptos or Dollars, actually!

Billy Henderson February 14, 2018

When it sounds too good to be true, it usually is. Buyer beware, apparently there are authentic currencies and counterfeit. Over 1200 in all?

Thomas Ramsfield February 14, 2018

I have not personally heard any stories re cryptos. I am not involved with them and I do not intend to get involved in any for the foreseeable future. I think their price is based on nothing and anyway it is represented in numbers of Dollars, the price of which is also based on nothing. I don’t want cryptos or Dollars, actually! I like gold no matter what anyone claims it is worth in Dollars. It do not matter.

Natalie Giroux February 14, 2018

no, and no

CryptoDude February 14, 2018

Of course I’ve heard the stories. But the only person I know who came close to getting rich with crypto is a guy who mined Bitcoin in the early days and, not realizing the potential, sold his computer to a coworker and forgot all about the Bitcoin on it for years. He regrets not paying attention.

I’ve been invested in Steem and Bitshares for the last years and a half or so. I’ve gotten a couple of friends and family members to buy some as well. The things holding people back are the lack of understanding of what crypto is, it’s potential, and the steep learning curve required to get involved and keep your tokens safe.

Shawn February 14, 2018

I started investing in Bitcoin and other alt coins at around $1100 and have done very well. The thing new people must understand is that the most important thing about Bitcoin is not the money. It is great, but the main reason it rose in value and will continue to rise in value once the bear market is over, is because it is shielded from the ravages of central banks. It is deflationary, meaning it has a finite amount of coins, period. It can not be printed, and cannot be overthrown. It’s network is spread across the globe and the blockchain has never been hacked. There is no need for a third party like a bank or government to hold your hand and track most of your activity because the blockchain provides a peer to peer contract that can never be changed or erased. This is also why so many other alt coins will do well because they offer cheap and fast transactions for payment remittance, secure contracts that don’t require a middleman like a lawyer to set up, decentralized identity monitoring and storing services that are not centralized like LifeLock or Equifax, lending platforms that are private and secure…the list goes on and on when it comes to the possibilities crypto brings.

The hacks you hear about are when exchanges or computers of the end users are hacked, but if you use a hardware wallet and the password manager like Trezor offers, it helps secure your coins, and also allows you to access exchanges and sites even if a computer or device has malware or viruses. You can even go a step further and use it as a USB key. So when you want to sign into your email or other sites that support U2F 2 factor authorization, you have to have your Trezor device plugged in before you can access these sites, shielding you from key loggers and malware.

I do have a friend that bought in when BTC was at $0.50 and he did very well as well. This is a new economy that is just starting and im so glad Dr Weiss and his team are offering rankings on these. Luckily I’ve invested in most of the highly rated cryptos. This may look like it’s all over, and we may go through a multi month bear market, but this is just the beggining. When the dotcom bubble burst, many rose from the ashes, and i think Weiss ratings will help find the ones that will have the user base and financial backing to do this

Phil Issenberg February 14, 2018

A Speculative move to protect one’s asset Is a bet against the Feds. monetary system. I don’t believe the Feds
will allow it to replace the American Dollar. I believe everything within the Feds power will be used against the rise in this crypto currency. There are two many hucksters out there. Asking probing questions and the answers are not
reasonable.. Panic only produces false hopes.

Doug L. February 15, 2018

Yes, I have heard the thousands of Bitcoin for a pizza story. That’s all they were worth at the time. Too bad but that’s the way it works sometimes. Honestly, I’ve earned more $$ in 3 months in crypto-currencies than in 2 1/2 years subscribing to the Gold Mining Millionaire portfolio. Too bad for it. This I am regretting big time. But I am very encouraged about the potential for Distributed Ledger Technology of crypto-currencies to improve the lives of people all around the world. And also how it will broaden out the benefits of Financial Technology (FinTech) down from the big banks and financial institutions to more of the common people which will be the impetus for more entrepreneurial spirit as well as greater standard of living for many more to enjoy. I slowly learned so much from YouTube videos watching and listening to what others have done to invest, transact ,and securely store ‘cryptos’ and I highly encourage others to do the same. I have been convinced by the huge amounts of investment in companies looking to build out the infrastructure of transacting and securing this technology sector that there is no way it will not be viable. It will literally be the way we all transact in the future. Why wouldn’t I want to be an early adopter? I have a portfolio of around 10 different crypto-currencies which have a total current value near 5 figures.

Paul February 15, 2018

No and no, mainly because access to buy/convert cash to crypto is impossible here in New Zealand now as the banks have all this anti money laundering laws they have to abide by and halts the process.
If you know of a way then please let me know.

Regards Paul

ed chan February 15, 2018

1) Yes. I noted the btc value shifted 4 digits to the right to 4 digits to the left of the decimal place in less than ten tears. This reflects the rough devaluation of the averaged world fiat currencies within this period.
2) No. My interest is in macro-economics and philosophy, not trading for a quick buck. You see, all currencies are faith based. Fiat currencies on their governments, as trading tokens/chips on their casino; while crypto-currencies depend on the counter-party. The value shoots up to look for a counter party. I first noticed this when Cyprus banks went bankrupt, and quite a lot of money managed to slip away. In theory, the blockchain technology would provide a trail, but I guess nobody cared at that time. I believe by now a number of governments are scrutinizing the trails, with the result of more format and variants jump out, for different reasons. One may be to erase the accounting trail. I also suspect that some of the recent hacking may be done to remove some crypto units and erase the trail. The Btc inventor is a genius working on an experiment. I had no idea why he set the number as finite. Obviously, no one can keep/show a btc as an antique.

Bob February 15, 2018

Hi Martin,
You sure hit the high note with this subject…..lots of responses.
As for me NO THANK YOU on any crypto currencies for now!!
However, BLOCKCHAIN TECHNOLOGY is where to be.
I disclose, I bought 5000 shares of “360 Block Chain” ticker BKLLF, for 17 cents/share, Canadian company with US company ties. Also considering buying some ticker “RIOT” real stock market stuff.
Bob

Brian Miller February 15, 2018

Yes, I have invested in Crypto but not until December of 2017. My initial investment has been in mining operations and I have two mining rigs with 12 GPUs which was about 8K that I invested in equipment. I heard about BTC on the radio station Coast to Coast back in 2009ish and thought about investing but had no clue how and never did. I have some friends that are into building websites and computers. They started mining and helped me get started.

I never played the stock market nor did I know anything about trading stocks much-less crypto. I can see why people are not doing it though. It is pretty complicated to start. You need to be verified on exchange sites linked to your bank account. You should create an offline wallet to store the coins you hold etc… The process is complicated right now. However, I have talked to my Grandmother who knows nothing about computers or technology and asked her if she wanted to put money towards the mining rig or for me to invest. She was all for it and saw the value.

I have invested my mining earnings into Alt coins and have a pretty decent diversified portfolio. Hard thing is knowing what kind of research to do on different coins and their projects. I have no clue to what to look for to see if it is a scam or worth value. I am part of a lot of groups on Facebook and other websites to learn as much as I can but you do not know who to trust for advice.

I hope to have my investment paid off in 6-8 months mining coins. I am committed and it is the future. If people do not see that it is their loss. I also see people being too lazy to actually invest because of all the steps that are needed to do so. I have learned a lot on Youtube on how to trade on different exchanges because I was really clueless on how to put bids in and buy. Plus you need to transfer coins from different wallet addresses and know what your doing or you coins will be lost or given to someone else by accident if you do not do it right.

Hope this helps your study. I would like to see a company take on investing for people but that makes in pretty difficult with the wallet addresses to determine who actually owns what. This is the future though. If you have 2 factor authorization to make transactions it will be hard for people to steal your coins or hack your investments. I think it will also reduce credit card fraud and people will not be carrying cash anymore so robbery crimes might decrease as a whole. I am thinking 15-20 years out but I am happy I am in the game right now to hopefully be set for retirement.

Glenn February 15, 2018

I was close to buying BTC three years ago but chickened out… No I’m considering not doing that again; just waiting for the right dip to go all in

John H February 15, 2018

Sorry but having not mentally engaged on bitcoin until recently, I accept that I have missed the mega gains referred to above. I now suspect that the only way is down for most of the coin offerings and, at best, a very few may survive if their business model is successful (look at Facebook, Google destroying competitors). Whilst the blochchain technology may be a practical method of securely recording multiple transaction, it is hard to understand why billion dollar “values” are placed on those who offer it as a service. I fear criminal activity/hacking as well.
As a pensioner, coins are a no no investment risk

william kellermann February 15, 2018

Martin: Thanks for a pertinent survey on a timely subject. I am 86 and brought up in the world value that money is earned and saved for an interest return. I cannot understand how you can manufacture a so called bitcoin that will circulate for purchasing items with air behind it. I’m old fashioned but trust 6000 year old gold with history to prove its worth over the millenia. — a 30 year Weiss follower.

Bruce Wiseman February 15, 2018

Yes, I’ve heard of eye watering stories like that – Not necessarily $88M home purchases, but I live in LA and celebrity home purchases in the multi-millions is common.

Yes, I have bought and sold cryptos – Not like some of the stories, I just tripled my money and got out

Quolz February 15, 2018

1) yes
2) yes, but i’ve joined the crypto-train a bit late. Therefore im on a little loss wich does not matter much as I believe in the technology. I get often asked why I invest in a few bits and bytes and my answer is: The cryptomarket is in a transformation similar to the mobile phone. Bitcoin is like Blackberry and Ethereum is like Nokia. They were good in the begining but failed to move on so new companies came and were disruptive. Yet there is no smartphone on the cryptomarket. But we are not far away either. Smart Contracts were a good start, but were is my “Lost my private key” request new passwort feature? Where is my rollback transaction as i send the money to the wrong person? Sure this is a heavy challenge to be solved decentralized. But there will be a coin to evolve with fast transaction, smart contracts, easy to use, open protocoll. But this coin will not be a PoW coin or a coin with fee’s.

Trent P Barry February 15, 2018

Dear Martin

I made the decision that I am going to invest in the cryptocurrency markets about three months ago. After reaching the decision that they are here to stay.

In preparation I have so far done an 8 week online course, which I found very worthwhile at skillincubator.com. I am still doing the homework section of the course which involves a lot of both fundamental & technical analysis. As well as practicing & researching both finding good crypto projects & Good Trade / Investment Setups.

Furthermore I subscribe to about a dozen or so cryptocurrency newsletters that arrive in my inbox each day that provide dozens of new cryptocurrency projects to research as well as various interviews & advice from experienced traders.

Like any new area of learning I find there is a lot to learn & eventually know about before any sort of confident, wise decisions can be made. Cryptocurrency Investing is one of the greatest challenges I have ever taken on in that regard. I have so far written & compiled about six hundred pages on the subject of cryptocurrencies & blockchains etc, which need to be gone through & analysed before I can write an authoritative (for myself) Crypto Trading & Investing Strategy, with a list of Crypto Projects to Invest in.

So, it will no doubt be some time yet before I actually start parting with real money, to invest in the cryptocurrency markets, based on real knowledge. Then all I will need is a couple of years experience of losing and gaining money, starting out with very small amounts, before I achieve my goal of becoming a: “Consistently Profitable Trader/Investor”!

Kind Regards

Trent Barry PhD (ANU)

PS: My wife is the godmother of a young (22yo) man who started buying Bitcoin in his early teens & has just bought his parents a beautiful new home on 14 acres of garden in a very prestigious, & expensive, area just outside Melbourne (about a 50min drive) called Mt Macedon (near where we live) for $3,400,000. And our eldest daughter Amelia, who is an Interior Designer, has been given a $250,000 budget to renovate & furnish the interior.

Stan February 15, 2018

These are small numbers; I invested £1000 in each of Bitcoin and Etherium in the upward surge. When the “value” had doubled to £2000, I sold £1000 of each, so my remaining stake had cost me nothing. When the peak was reached/just passed (it happened very quickly) I got out, netting £4500. Cryptos are extremely volatile so play them cautiously. Mind you, I wish I had got in much earlier.

Suzanne Zeinfeld February 15, 2018

I would like to invest but in a safe and intelligent way. The environment appears to be moving and changing so fast that it’s not easy to keep informed. There is so much information now that it’s hard to know what is accurate and what isn’t marketing hype. The wallets seem to be vulnerable to hacking and that gives me much pause.

It would be of benefit to me to have a cutting edge yet grounded advisor in this space to guide us. It’s sure to be a journey that we will one day look back upon much like the advent of the internet. I’d like be a part of it this time and create a really nice nest egg for retirement.

John Hanna February 15, 2018

I have invested in PROC ProCurrency. I believe crytos and the blockchain have a place in our investments and the blockchain will be in every part of our life. ProCurrency will be very useable in everyday life soon.

Michael Santoro February 15, 2018

I have not invested in bitcoin yet. I opened an account with Coinbase and link it to a credit card. Then all bitcoins sank. Now, I just tried to invest in Litecoin with Coinbase and found out my credit card company has stopped all bitcoin transactions. They no longer allow card holder to invest thru them in any bitcoin. I can link my Coinbase account to a bank account or a debit card. I haven’t done so yet. I’m between a rock and a hard place as to getting involved. I do have your bitcoin ratings with the idea of sticking my toe in the water.

Rik reply_all Michael Santoro February 15, 2018

You can’t buy stocks with credit card, so i think it was a good thing the banks blocked all credit cards from being used to buy cryptocurrency.

If you are getting into crypto spend what you are comfortable with losing.

I have been using Coinbase for a while now and have no issues with them. My transaction with Debit and Bank Account are instant. Withdrawal sometimes are within 2-3 business day.

Also, over time they increase your deposit and withdrawal limit weekly limit. I’m currently at $100k limit in less than a year.

To deal with volatility i normally sell during drops to fiat and place it into the USD wallet, which you can set up after verifying yourself with an ID.

james stephenson February 15, 2018

Yes heard stories, but too much of a gamble for me (age 84) to buy bitcoin.
But, I have invested in companies with Block Chain tech for future uses. – like Nvidia (bought in 8/2015 for $22 share – now $240 share – 1000% gain, and recently in AMD in block chain tech.

Rik reply_all james stephenson February 15, 2018

Buy RIOT

Chris Merriam-Leith reply_all james stephenson February 23, 2018

Hi James,

Very good approach and strategy for someone in your age range. Keep safe.

Bill Farrell February 15, 2018

I know very little about bitcoin or any of the others. My first thoughts on the matter was tulip bulbs.

timothy affolder February 15, 2018

1. No I have not.
2. No I have not

Lyle Olson February 15, 2018

There have been big gains on Wall Street, gold mines, lottery winners, but nothing like bitcoin. I have put some money into the “game” a few months back, forgetting that whatever goes up, must come down. We’re working our way out of the crash. It’s a new world. The foolishly brave may do well. I will keep some money in the system. The problem is having enough “faith” to make the bold moves necessary to really make it produce.

Taffy February 15, 2018

Hi Martin, Answer to both questions are (Drum Roll Please) No!

Alice February 15, 2018

I am scared because I don’t understand it

Bret reply_all Alice February 15, 2018

I don’t trust anything about bitcoin. nothing.

Steve Wellman February 15, 2018

Conspicuous consumption, and the “excitement” it generates, is the final step in the decline of empires.

George February 15, 2018

I put $1000 into bitcoin about a year ago. But I made the fatal mistake of then putting them into a ponzi scheam and lost every thing. If I had simply held on to them I would be way ahead of the game now. . . . Live and learn.

TED ..... February 15, 2018

i THINK,, ITS A SCAM..!!!
USA,,,SHOULD,,,RETURN TO THE GOLD AND SILVER STD..

TELL ME ,,WHY NOT..???

David C. February 15, 2018

Some off the comments confirm to me that there is no bubble yet as most people have not invested. Also, the person who mentioned “printing money out of thin air” needs to look at our $. Plus, the people who comment on this being “only money in a computer” don’t seem to understand that our $ system is basically the same and is currently moving to being completely “cashless”. I’ve been in the Crypto’s for a while and have a good sized Portfolio in them after taking out ALL of my original investment. As I said before good to know there are plenty of skeptics.

David C

Jon February 15, 2018

Simply do not trust them anymore than I do the demonrats.

John Kinnunen February 15, 2018

I have not invested in bitcoin because it just seemed like gambling and I did not want to participate in that.

Larry February 15, 2018

scam

Jeff Dever February 15, 2018

Won $200 at the Oaklawn Racetrack and had a friend buy Bitcoin for me in his account and then transferred into My own Binance Account where I bought almost 500 Stellar Lumens @ $0.38 each. 62 years old and plan Holding two years. monopoly money
I believe Silver is a better investment

Rik reply_all Jeff Dever February 15, 2018

Stellar Lumen is a good buy. It will definately will go higher. I have been in since before 3 cents. i sold a huge amount at $0.50 but still holding over 10k Lumen.

Victor Lehman February 15, 2018

I Believe if we want freedom.
We need no Central Banks.
This has been the down fall of our economy, putting the control of it into the hands of a few individuals.

Pete Hillebrandt February 15, 2018

I have more invested in etherium and other currencies rather than bitcoin. The technology itself is here to stay but the jury is out on what coins will survive ie rhe 2000 tech crash

Stuart Rothstein February 15, 2018

As both a classically educated investor and (previously) a professional derivatives and commodities trader, I was taught to depend on my own research prior to making decisions. Unfortunately, my interest and involvement in Crypto-currencies was not peeked until after I read an article explaining the logic and value of blockchain technology. Since then, I have been a careful investor and although not a “big” winner as of today, I see enormous future potential in this technology’s application.

Dave February 15, 2018

For all who are “afraid” or “don’t know anything about it” and therefore don’t do anything. My goodness people are you going to just go and live in a cave? There is risk in all we do in our lives. There is more risk in some things than others. Once upon a time you didn’t know how to drive a car…. but you learned. Once upon a time you didn’t know how to use a computer….. but you learned. This is no different. With all the educational information available on the internet about cryptos and blockchain why don’t you do the same and learn about it? What are you waiting for? Even if you don’t invest why don’t you learn what it is and what is behind it like Martin says? I have a friend who bought Ethereum last spring for $12 and sold it near $400 and in the process made $250,000. And today it is almost $900 even with the big recent dip. He is the one who got me off my butt to start learning about it. I spent time educating myself before I ever put a nickel into it. I have invested about $2,000 and am up about 500% on my investment at this point even with the big recent dip. There is risk in every aspect of our lives such as driving to the grocery store or flying somewhere. Do you avoid those because there is some risk? Most likely you don’t. You learn about the risk, knowing there is some there but live your life accordingly. The same goes for this. Do your homework and LEARN about it. Then make an informed decision on investing and whatever you do don’t invest money you can’t afford to lose. In other words, use only risk capital whether it is $200 or $20,000. You also must understand what your investment horizon is and that can and should be based on things such as your age, financial situation etc. Then stick with your investment plan. The internet made many millionaires and so has crypto and it will make many more. It is your choice if you want to be one of them or just make some extra money for whatever it is that makes YOU happy. There is no one size fits all with crypto just like everything else in life. Great work Martin, you are doing all of us a wonderful service providing your incredible insight and analysis of the crypto markets.

Rik reply_all Dave February 15, 2018

Well said.

Pamela February 15, 2018

Hi Martin: thanks for all that you do. I share your data w several alt sites which I data mine for. I’m a gold and more so silver bug. My colleagues nagged me to get into cryptos- I invested 2k on Coinbase-removed the initial investment within 2 weeks and had fun. This began in June 2017 w bitcoin, litecoin and Etherium. We took profits when bitcoin hit 19k and bought a boat slip on Flathead lake and paid off our boat and freightfarm! My husband is researching and buying up and coming cryptos- we are up 200k in profits AFTER the crash. We believe in the blockchain and smart contracts and are not too fond of central bankers/ banksters. Some profits are slated to finish Sparrow Nest, a home for homeless high schoolers in Flathead Valley Montana. God has blessed us and we truly looked forward to giving back Again, thanks for all you do!. Kind Regards Pamela and Wade Sunny Slopes Organic Farms/Yellow Bay Orchards. Bigfork Montana

Kevin Miller February 15, 2018

I believe in blockchain technology. It is very disruptive and a game changer. I believe in crypto currencies a little less. However, they are difficult for governments to control and manipulate, so that’s a plus. Bitcoin’s Achilles heel is the escalating cost to maintain (mine) it. At some point that won’t be worth it for anyone. In the meantime, party on.

Mildred Wood February 15, 2018

Mildred Wood. I made a small investment in Ertherium but sold with the drawback. I like real cash.

Fred Gibson February 15, 2018

In the end, they will be a Ponzi scheme. Meanwhile, they will go up and down. I wouldn’t mind investing a few hundred dollars, but I don’t know how it works or where to look for information. Actually, I don’t much care one way or another. I’m more interested in other things in the market such as gold and when the crash will come.

john graham February 15, 2018

Yes, that was a one time bombshell. It can’t happen again, can it ?
With Goldmans, IBM and the banks entering the fray, we will only get up to 500% at best from now on.

With Bitcoin futures now available, the big players can sell short futures to crystalise profits on the stock. This will cap price.

Gordon February 15, 2018

Lets start with some questions: FIRST, why do they show a beautiful Milled GOLD coin and even stack them up if there are no coins?
Why do they make so difficult to buy, loose on the exchange from FRN`s to cypto`s. I wonder if its such a slow long process to get in , oh yeh and to store in one of the invisible CLOUDS, thru some kinda of WALLET{Guess you can rent the wallet}……..HOW hard will it be to get out? Could the exchange get to busy and delay or shut down.
So we have all heard about “MINING”. So why do they mine if crypto`s already exist?
Tax treatment ?? What should the rate be on an IDEA? Are losses deductable? Can they be depreciated, exactly what is the LIFE SPAN of these things or idea`s.

The Positive: They can cross borders so potentially the could be used with agreed value anywhere and reach the whole market.

Sound money has characteristics : #1 and most important is the storage of value over a long period of time.No actual proof of that. Transportable, divisible, durable. OK, so its really lite and cant wear out cause it `s not there.
Perfect for the “TEXT” generation, don`t let your battery go dead. My rating::Wild Speculation.

Rod Gaede February 15, 2018

They are really worth what the next fool is willing to pay. If you run out of fools the coin is worthless.

John February 15, 2018

I have $500 invested. It is now worth a bit over $4,000.
I would be happy to take the profits and run, however, it is in the Binance exchange and I can’t get it out. The SMS they send for withdrawal is never accepted. It makes me suspicious of the whole thing. Rather have my money somewhere else.

Rik reply_all John February 15, 2018

I transfer from Binance to Bittrex and visa-versa quite often. Have you tried talking to admins on telegram, twitter or even open a ticket.

And why are you using SMS. Google Authenticator is the best method for safeguarding your account.

Hank February 15, 2018

Bitcoin and crytos are a scam in the sense the creators and early miners always seem to gain the greatest profit. Secondly Bitcoin has exponentially increased the amount of “real energy” needed to “mine” these digital tokens and I feel this is a total waste of energy and it also keeps the average person out of the mining scheme. Finally, it reminds me of the infamous Tulip bubble.

Chris Merriam-Leith reply_all Hank February 23, 2018

Hi Hank,

Just something to consider about the whole “Bitcoin Energy Consumption Argument”, just how much energy do you think it takes to keep the current global financial system up and running? The bitcoin infrastructure is infinity more efficient in comparison and orders of magnitudes much smaller. Just the companies all Wall Street alone consume huge amounts of energy, this does not include all of the other global financial centers and banks and ATM’s and POS and credit card networks. You’re not seeing the big picture.

Jeff Putzier February 15, 2018

Martin: I can’t help but think the buyers of Bitcoin are buying an empty paper sack and that someday everyone is going to realize it’s an empty paper sack. I have yet to hear anyone cogently explain the value of this asset, I get the supply of Bitcoin is limited and finite but that does not make it valuable.

Jeff P.

Chris Merriam-Leith reply_all Jeff Putzier February 25, 2018

Hi Jeff,

Here is a very simple mind experiment for you. I would like you to try to purchase some Bitcoins from someone who owns Bitcoin. Since you don’t believe it has any value, then just offer the seller $100 per 1 Bitcoin and see if anyone in the world is willing to take you up on the offer. If that doesn’t work, then try increasing your offer price to $5000 for each 1 Bitcoin. That certainly should work, because $5k is a lot of money for something (Bitcoin) that has $0 value.
Lastly, I then want you to offer to sell $100 for $110 and see if anyone is willing to accept your offer.
Certainly, there is someone in the world who is smart enough to accept $5k for 1 Bitcoin. After doing this exercise of buying /selling (Supply / Demand) then you will have the answer to your question about value. You need to really ask yourself what is the meaning of “value” and how is it created and most of all how is “value” defined.

Jaime February 15, 2018

In my humble opinion Bitcoin is a scam… Can you make money in a scam? You sure can as long as you know what it is and that one day the music will stop. When will the music stop for bitcoin and other crypto currencies? The answer is when the national governments feel that it has become a threat to their own currencies and their monetary policies. Currently Bitcoin has minimal oversight so the prices can be overinflated due to looping trades and other manipulative practices. If you want to invest, invest in the companies that are developing the block chain technologies, not the currencies that are utilizing these technologies.

This is just my humble opinion…

Ernie Gulyas February 15, 2018

I guess I’m old fashioned – one can not create wealth out of thin air. When the US needs money it turns on the printing presses for more greenbacks- wealth out of thin air? Give me a break. Now we have sharpies creating wealth out of cyber space! No I won’t be buying in. If I buy any thing it will be bullion, at least it is something one can hold in ones hand, and I will not leave it in a pool for safe keeping, desperate governments in the past have seized such pools “in the public’s interest”.

Paul February 15, 2018

Hi Martin,Thanks for your writings-very appreciated.How many dollars do you have in Bitcoin?I have none.Cheers,Paul Aussie

David Magee February 15, 2018

Bought $4100 in July of last year. Have taken out my original investment and even with recent pull back I am $24,000 on house money.

John Mahler February 15, 2018

Planning on investing no more than 2% of my monies on the cryptocurrency market,. I see the up coming currencies as having more potential than Bitcoin and that the true value in this market is the blockchain process. John

Prepper Librarian February 15, 2018

Crypto currencies are a fantastically useful new trend for transacting business quickly & privately. But, individual ones will rise & fall like many dot com companies during the rise of the internet, because they depend on trust & use. The technology is what is truly revolutionary. And even better technologies are on the horizon like Hashgraph or Zilliqua. These will help get the banksters and govt tyrants out of our wallets. But that is not without a fight, they will outlaw Cryptos or tax them or design their own and punish the use of “non- authorized” ones. So get ready, this is “economic warfare” and it will not be pretty. It will be very painful and only the quick and courageous will survive. So, get prepared for survival, get financially liquid, get educated, do your due diligence and ultimately trust no one but yourself to make wise decisions. Trying STEEM & Hashgraph for a time. But like any trader, go with the momentum trades. Don’t have big losses, have big wins. 🙂

Al February 15, 2018

The blockchain technology behind cryptos is the most interesting new technology since the internet. Somewhat like the dot com excitement around the turn of the century. Several of the crypto coins and tokens may hit the dust, but a few are likely to survive in a spectacular way. And somewhat like the internet the real technology is the blockchain, which eventually will become the technology that destroys much of what we take for granted today. With a much less expensive, secure and accurate methods of doing business.

DEAN February 15, 2018

Investing in cryptocurrency makes me wonder why it goes anyplace!! It seem it is pie in the sky. WHAT MAKES ANYONE THINK IT WILL BE MORE VALUBLE IN THE FUTURE?
Doesn’t gold look better?

Randy February 15, 2018

Some say that making bitcoins out of thin air is a Ponzi scheme, however the federal reserve note is no different, it too is out of thin air. The people have made it valuable by believing in it. Just like antiques and anything else that is overvalued. As long as we are physical, value is truly only intrinsic. When in Rome act as a Roman……. However we must all hold to values that are more than just money, because you can’t take money with you. Only your character!

Jesse Smith February 15, 2018

Martin,
I am eighty one years old, and involved in crypto currencies. I am somewhat computer literate because I had to learn something about computers back in the late 1980’s after helping start a marketing company.
I have thirty plus alt coins and Bitcoin in my portfolio because of a younger friend who is a computer whiz and understands the in and outs of investing and storing this new investment class. I could not participate in the crypto market without his help.
I am convinced that governments will not be able to agree on how to stop this new currency, and as investing in crypto currencies becomes easier for the average person we will see a booming market.

Rik reply_all Jesse Smith February 15, 2018

Congrats. Good to see someone at your age took the time to learn about blockchain. It will definately pay off for you. Especially since i see your holding thirty plus coins, well diverse.

I’m currently holding 37 cryptocurrencies and looking into getting into some new ICOs.

JUANFEDERICO BASSEDA February 15, 2018

WELL, MARTIN; LET ME SAY ‘THIS’ ABOUT ‘THAT’.CRYPTOCURRENCIES ARE O.K. (GLOBALY). ONLY (GLOBALY) ARE THEY VALID.

Timothy Lethbridge February 15, 2018

I am a professor of computer science and have been following BTC and other cryptocurrencies closely. My take is that they are a new kind of investment with an interesting combination of properties. In many respects BTC is like art or collectibles
* Super-speculative: Even experts can’t tell when crashes and bull runs will come, or the regulatory regime will change
* Short in supply (for BTC and many others): Mathematics and energy requirements ensures that the supply is limited, suggesting upside pressure on price over time
* Too easily subject to fraud (currently): There have been too many heists; lack of regulation and the ‘darkness’ of the industry suggests there will be more hacks
* Not suitable as a unit of exchange (currency) due to price swings, fixed supply as well as slowness and expense of transactions

My prediction is that, like collectibles, they are here to stay for the long run. There is probably a natural bottom on BTC of maybe $100, but the price could swing back up to over $100,000 and back down again multiple times over the next decade, but with a long-term upward inflation-adjusted trend if one carefully buys low and sells high (take out gradually increasing profits on a rise, and buy only when off 50% off peaks)

Don’t put more than 10% of your portfolio in cryptocurrencies (withdraw any portion above 10%), and diversity to 2-3 cryptocurrencies, and 2-3 exchanges to reduce risk from fraud.

If you have lost a lot of your initial investment, simply hang in there.

Be wary of the tax man, and faithfully declare your gains (and losses). Expect tax audits to come your way.

In conclusion: Answers to your questions. I haven’t heard any major success stories other than what you have heard, although I have friends who have been doing mining and have made a decent profit. I have not invested myself, for the same reason I haven’t invested in art: It requires research to know what and when to buy, and I have been burnt by ‘unusual’ investments in the past, even when I did the research. But if I can find some more time, I might dabble.

Frank February 15, 2018

They are not “cryptocurrencies”, they are “kleptocurrencies”!

Willy February 15, 2018

I saw in Youtube that someone just created JesusCoin. I thought that was a brilliant idea as you don’t have to give your tithes or offerring to the middlemen, i.e, the Church. You can now buy JesusCoin and it will go right to Jesus instead of handing your hard earned cash to the Church.

Glen Sifton February 15, 2018

Not a scam but a roll of the dice, not an investment but a gamble. I think bitcoin and maybe 2 others will survive but at what value?, the rest will eventually fail. That’s my guess. And that’s assuming government doesn’t outlaw or radically hobble it to deal with “cybercrime”and “laundering” excuses. Any threat to government power and control is very high risk.

Jay February 15, 2018

Martin,
Got into cryptocurrencies around November. Stood on the fence for about 6 months after I really started following Bitcoin. My wife and I agreed to invest $10,000. Because we knew very little about it. We looked around for advise. We bought into Palm Beach Investment service for the $2,600/5 year deal with $140/year maintenance. We put the rest of the $10K into buying coins. We own 10 coins. Just checked and the value of the coins are at $5,250. So in reality we are down $4,750. We understand the potential in blockchain but are becoming very educated on the volatility of the space. We are invested in AMD and NIVIDA and a couple of cryto-based ETFs. Listened to Motley’s spil on long term investing in the cryto market. We have not jumped to buy the service for the 5 coins. However, I did move my BTC balance to Strata. Note: We do need help/information to understand the long term plans for the electronic dollar age and how to really pick the best companies/coins in this space.
Need Help:)

pat reply_all Jay February 18, 2018

Never pay high fees for investment advise ,$2600 is not a deal it’s a rip off even if one can make a lot of profits, if you bought into crypto’s in november last year ,you should at least have made a multiple of gains on your $10000 investment,but you didn’t because these lousy advisors dont tell you to take profits in time because they dont know either when the corrections come,longer term I think there is still much higher prices to come for a few crypto’s ,much higher then in BTC, I bought BTC at about $200 a few years ago after the crash from about $1200 I didn’t pay anybody these insane high fees for advise,most of the current advisement services on crypto’s were not even there yet.
They claim to be specialists ,but they are not,they just follow the stampede make lots of money with the high fees and at the same time create huge profits for them self because they are also in these crypto’s they reccomend.
It a pump and dump strategy,most of the +1500 crypto’s wont survive,but the survivers will make one rich, Teeka Tiwari recomended to buy XLM for about 4 cents a few months ago and told to sell for a double quiet soon later ,XLM became a multibagger +15 times higher ,what does that mean ? The guy is just shooting from the hip with h ,I would not pay more then $50 fee for his advise.

dave February 15, 2018

I started 11 months ago to the day with $3150 (in my realm, this is a very small investment). Now have $135K, even after the huge January decline (yeah, if I sold then would’ve had $200k). Sure, there is a LOT of fleshing out to do, but the blockchain is here to stay. Started with ETH, then branched out into 54 other cryptos. Above water in 48; 2 about even and 4 I am down 50%. Half were recos from Teeka Tiwari; half were my own research choices (incl. the initial ETH). 98% of cryptos are garbage. However, 2018-19 will likely be the best opportunity for real growth and likely tapering off a bit after that would be my guess. Hopefully we will see many practical uses in 2018-19 time frame. Also, better creation models (i.e., decline of mining and rise of pre-mined cryptos, etc.). I am not a trader, but rather prefer to hold LT for tax purposes, and other goals.

William February 15, 2018

Blockchain and subsequsent technologies like hashgraph will be well known terms even though not yet understood by most within the next 1 – 2 years. Internet started as Arpanet 50 years ago and 20 years ago it had become the dominate tech for the future. The same will hold true for blockchain technology and some of the cryptos (Ethereum and some ERC20 tokens, maybe IOTA and Litecoin – we’ll see). As for 90 – 95 % of all other cryptos – it will be like AOL and other internet companies that didn’t make it. So, I look forward to the future as banks particularly the big banks (BA, DB, FED, ECB, etc.) cannot be trusted and hope that cash is not banded at least for the near term.
If things play out in the next 6 – 8 months, I hope to increase my crypto value by at least 10,000%. I playing with the house money anyway.

Gary Arford February 15, 2018

Cryptos are here to stay. Most will be totally worthless as in any mania but some will be the wave into the future.

Like any investment, we must do our due diligence and then not put all our eggs in one basket.

I have quadrupled my money in 6 months. It would have been more but I make it a practice to take my initial investment out if it doubles and then take it again if the double reoccurs.

Use sound equity management and due diligence to buy assets that have a legitimate business purpose and play on the house’s money.

With those caveats, it is both fun and very rewarding.

E L February 15, 2018

It’s pure speculation. Other than the speculation aspect, there is no scale of value and yet most adults are silent on what we are witnessing. The cheerleaders are those with vested interests. This is an effort to be crowned the King Of All Bubbles, (and names will be taken).

Arthur Peill February 15, 2018

So Emily used Bitcoin to pay off a car, a house and set up a college fund? All of these are good in themselves, but does she have any ethical concerns? Does her action (or other’s) differ in any way from a gambler’s?

pat reply_all Arthur Peill February 18, 2018

The whole financial system became a gamble since federal banks created insane amounts of digital fiat,the stock market is the ultimate gamble nurished by this huge flood of fiat,shares that go for ten times then what they are currently worth like TSLA,what is that? A GAMBLE( by the way you can buy a tesla with BTC)
There is more to be made in crypto’s now then in any other ‘investment’ if the bubble like in stocks and bonds will be revisited in crypto’s BTC will go to maybe $1 million/coin before it will destroy itself within the next 10 to 15 years to come,
The distruction sit’s in it’s own creation,the fact that to many coins (5 million) went easaly lost .
BTC wont survive but will be replaced by better setup crypto’s,but before it goes the way of the dodo it will probably go ballistic in the coming years

Thomas Hollarn February 15, 2018

Who and what stands behind the Bit coin value?? I see the governments losing control of the “tax” on too many objects to allow this to happen, lest we go to a “World Government”???? (Not the UN)

Paul February 15, 2018

It’s not an investment but rather a collectible fad. There is nothing to back it up.
I’m surprised and disappointed someone of your background is promoting this
fraud. I’ve lost all respect for you now. Who in their right mind would champion
this fraud in their investment program?

SimonP reply_all Paul February 15, 2018

Paul, I don’t believe he is promoting cryptocurrencies
He’s merely asking what readers think

pat reply_all Paul February 18, 2018

What backs fiat money? It’s backed by a virtual bankrupt extend and pretend system addicted to create more fiat to keep it floating untill it can’t be done any longer, and your fiat becomes toiletpaper,is there still gold to back fiat and if there is still the + 8000 tons of gold backing the $ then there will be only one solution to keep the debt managable as they did in the past : revaluation of the goldbut for a price tag to up to + $10000/ounce for example.What do you think your fiat notes are gonna buy you by then? There are flaws in BTC and I would never put to much money in it but for a small amount of your assets it’s worth to be in it and maybe see it increase in a small fortune.
Nonbelievers are not obliged to be part of it,then stay out there will be hundreds of million people in it in a few years because it’s the only tool for the poor to get a better and richer life,and brake loose out of our current economical slavery system.

E. Watts February 15, 2018

I think cryptos may be fine…..until they’re not! I haven’t invested, too leery and don’t know enough about them.

pat reply_all E. Watts February 19, 2018

Tiptow into it with a small amount , so you dont take much risk and to get to learn what it’s all about you wont regret it ,I was hesitant too in the beginning,if I would have gone for it in the early days of BTC with the money I stept in a few years ago at about $200/BTC,I could have bought thousends of BTC and being a billionaire instead of being only millionaire now,what a pitty.

Jerry Beard February 15, 2018

No scam. It’s the future. I’ve been studying it hard for about a year. Have invested in several different tokens and am up at least triple. Even counting the current pull back. Can’t wait for summer!

jim S February 15, 2018

I believe the discussion should be about the technology and then how cryptocurrencies fit in. The blockchain is the technology that is already having a major impact on businesses. That will continue to grow at a much faster pace than in the past. Many large companies are pouring millions into the blockchain technology, IBM is one of the biggest. Cryptocurrencies can be considered to be like stocks. When you buy coins you are betting/hoping/assuming the company will be able to execute its plan as outlined in their white paper. Like any company you invest in you must do your homework first. These companies get their funding by selling coins and promises. Yes, it has been volatile and will be for maybe the rest of this year. Once regulations get put in place removing the ICOs which are pure fraud the market will be less volatile and more like the stock market.

Norman S. February 15, 2018

Cryptocurrencies have ZERO intrinsic value– not even scarcity, since little except ignorance stops me from setting up my own cryptocurrency mining operation!

While I doubt that their value will ever go to zero, it will approach that during the next economic downturn.

Even the Imperial Russian War Bonds of 1917 were eventually redeemed (see http://www.nytimes.com/2000/11/19/world/russia-redeeming-czar-s-bonds.html). Who will redeem bitcoin when they are no longer in vogue?

SimonP February 15, 2018

A currency is only valid if it can be easily be exchanged for items or services of value
Banks and governments seem to be making this more and more difficult with cryptocurrencies
Unless they are confirmed as exchangeable valid currencies, they are nothing more than “house of cards” speculations, of which I want no part

Eduardo Gallo February 15, 2018

I was sceptical about Bitcoin for a couple of years. Finally in july last year, I decided to flip a coin and invested $15,000 in different crypto; in august I did the same…another $15,000. In September I invested another $20,000…in December I pulled out my $50,000 and kept the profits in cryptos…$200,326 and continued flipping the coin.

If in 2018 I have another wining year, great, I might pull out some money from the earnings accrued and will continue flipping the coin with the rest of the profits. if not, I lose nothing and had some fun…in the meantime I feel comfortable because if I lose the money I am using right now, my life won’t change because it all comes from the 2017 profits. If it doubles or more, then I will take off 50% and make other investments and go travel around in Africa and I’ll invite my son…we like traveling to places off the beaten track…

Bruce February 15, 2018

I am still totally befuddled just by the word “cryptocurrency”! I can’t possibly conceive of risking money on it. I have done fairly well investing the old fashion way and truly believe in “bulls make money, bears make money but pigs do not make money!”

BERNIE February 15, 2018

I have never been in bitcoin or any other crypto currency because I do not know how to get in. I am a pretty svvy investor and have money to spare to take such a gamble but just do not know how. My broker won’t touch it

Hussam Abushtayyah February 15, 2018

Greetings Mr. Weiss,
It accurate when we say that the US dollar isn’t worth much since we know that it’s not backed by gold anymore.
I believe the Blockchain provide services to people and eventually it will be worth a lot more than what it’s worth now, but the block chain was made because of the Bitcoin and the cryptocurrency isn’t going up unless the Bitcoin is going up therefore there isn’t a value in any altcoin without a value of the Bitcoin.

SimonP February 15, 2018

Cryptocurrencies represent a great way to filter investment newsletters IMO
Any advisor or newletter that writes “get in now or miss out” gets blocked and deleted

Robert M Friedman February 15, 2018

Bitcoin appears to be a classic bubble that is enjoying its last recovery before the final quick crash. Many people make lots of money during most bubbles, but only those who get out before the final crash get to enjoy their gains.

van wemmel jean=pierre February 15, 2018

hello martin,
i didn’t step into crypto because i didn’t know where to complain if i wake up one morning and find my wallet empty.
jean-pierre

D February 15, 2018

I heard about bitcoin back in 2012 when I noticed the symbol as a form of online payment for my Dish bill. I researched but didn’t understand the tech or the concept of the tech so I wrote it off as a scam. Fast forward to October 2017 Bitcoin reared its head up again, I researched and read every article I could, good, bad, or indifferent I was able to understand the tech now that there was new information available. Initially, I bought into BTC when it was trading for $6,000 at that time I was only willing to risk $300 (what I typically spend in a weekend going out with my gf). The price steadily rose, so I continued to research BTC along with several altcoins, I paid attention to use cases, speeds, and partnerships being made with different companies. By the end of November, I was $500 in sitting on $1200 in profit. I saw the crash coming so I moved from BTC to XRP, ADA, & Tron based on all the information I was consuming I felt these were some of the best altcoins to put my money behind in 2018. I was never a believer in the whole decentralized currency aspect because common sense tells me institutional money has a vice grip like hold on the global market and wasn’t going anywhere anytime soon. Most of my faith lies in Ripple (XRP) a company trying to work its way into the traditional money transfer system, which is archaic in my opinion. I’m in it for the long haul and with the partnerships Ripple has made with Money Gram, Western Union, Santander, etc I really feel that XRP will replace BTC as the industry standard. I might be wrong but either way, I really don’t see myself losing my initial investment in the process. I would encourage ppl to test the waters, stay on top of this industry, READ EVERYTHING if you do you will know how the market is moving and you will know when you need to pull your money out if you ever need to.

pat reply_all D February 18, 2018

Crypto coins are a world phenonenum,bonds of what ever country are not except maybe US bonds,but this is the biggest bubble that ever existed and will distroy bondholders when intrest start to go up huge.
Most crypto’s are a scam and will go to zero, but the survivers will thrive, the value is in adoption and peer to peer use even if it never gets legalized,altough Japan allready made BTC a legal tender as their currency the YEN, a country with +125 million people and soon others will follow because nobody can stop it unless internet is abolished which is not going to happen. What is the intrinsic value of the stockmarket? Most shares are insane expensive and way above their intrinsic value but the herd is still getting in dreaming of even more bubble value,fiatmoney doesn’t pay any intrest worth talking about and what is the intrinsic value of a usd or euro or YEN ? What one can buy with it today wont be the same in the futur and wasn’t in the past (inflation).
The only real money free from debt is physical gold/silver and will never go to zero and could explode up huge when this fiat and debt bubble hits a pin. Nothing is more shure than gold altough it fluctuates too,most because it’s manipulated ,the gold price setting is not real because of futur contract fidling but eventually it will go up much higher to set off the coming bubble collapse in almost everything.Selective crypto’s could also partly be an escape from the implosion. Crypto’s that wont have utility in the economy will go to zero at some point and some scams are allready taken down to almost zero like bitconnect , davcoin etc and will dissapear.
In the long run, +10 to 20 years I think that even BTC wont survive because of the loss of to many coins untill now +5 million coins went lost in the ether,its actually a genious set up pyramid but before it stops it could go up for many years making not only the early adopters rich (they are allready) but also the ones who get in now and that with not much money at stake,what do you have to loose? almost nothing when you buy only a small percentage of your reserves even if it’s only a $100

Eduardo February 15, 2018

I invested some extra money in crypto at the end of 2017, now I invested much more as I do believe in its potential and standarization. Never putting money of every day life and having safer investments aside. However cryptomoney represents hope and financial freedom for middle classes around the world.

Richard P Granier February 15, 2018

I’m sticking to Gold and Silver…..The devil with all else!

Mel Slabaugh February 15, 2018

What is the difference, creating money out of thin air, or printing money on paper without anything of value backing it, like the Gov. is and has been doing for years???

CryptoLand February 15, 2018

Digital currency is a new asset class. The blockchain technology behind the currency is as revolutionary as the invention of the computer. People do not realize just how ground breaking the technology actually is. Sure, some of the currencies are useless and blockchain use is really no Beni fit to existing technologies, but projects such as Ripple, ICON, Walton, AppCoins, DeepBrain Chain, High Performance blockchain and others are going to help upgrade existing infrastructure around the globe. The digital currency market is a worldwide market that never sleeps. That’s why we see such massive volatility. It’s a market open to anyone and everyone. The USA stock market for example, is limited to a very select group of people (your average 21 year old will not buy Apple stock), but the new asset class known as digital currency brings along a new kind of excitement for the investing world. Regulation will help legeramize these markets. Institutional investors will start buying them and the early adopters (anyone that has bought crypto through 2018) will make easy money. I started out with $1k investment 4 years ago. That investment hit one million dollars last month. I cashed out 30% and let the rest ride. While it did dip during the correction, it is now headed up again.

Crypto Couple February 15, 2018

The volatility is high, the market still needs some regulation, but blockchain technology has the future. Some cryptocurrencies are based on nothing, some on good use cases (Ethereum – smart contracts) and some are already used in daily life. XRP, the coin connect to Ripple, is actually used by money transfer companies and banks, such as Cuallix, Mercury Fx, MoneyGram, IDT and Western Union. That is pretty amazing and makes XRP a good asset to invest in. We have a diversified portfolio, but XRP has been very good for us already (we went in early) and has the best future potential. More and more investors we know are going for Ripple/XRP.
Yet, Weiss comes up with articles/excuses to give this coin a bad rating. Was so incredibly disappointing that it took our trust in your company away. We hope another company picks this up, because we do need a good cryptocurrency rating if Weiss doesn’t live up to expectations.

Ted Kayes February 15, 2018

I suspect that a crypto currency or two may survive, but God alone knows which one.
Most are probably shams and I wouldn’t buy a Bitcoin or any crypto without a guarantee,
which will never happen.

Berit February 15, 2018

I have never invested in crypto currencies the reason I am 92.I would like to try with $1000 . The first questions were no and no.

Lori February 15, 2018

My husband wanted to buy bitcoin a year ago Feb. but I was very skeptical. He felt strongly about it so he made an initial investment of $3000 in April. It felt like a really shady transaction but he assured me it would be fine and if it didn’t work it was only $3000. And we were fine with that. He continued being interested and wanted to invest more, but again I was hesitant so he held off. All in all we did increase our in investment Portfolio, but had I let him play his gut feelings we would have easily made a million in a few short months. We are now a family who is all in, and I’m learning all I can about cryptocurrencies and the block chain technology so I can understand it and be an active investing partner with my husband and our children.

Lilli February 15, 2018

What about any stock in the stock market? Isnt the value of them also a representation of What people are willing to pay or sell, vs prospected returns? The only thing that differs is the amount of life cycles a crypto goes through compared to regular stocks. Everything is a Ponzi/mlm scheme, atleast with stocks and crypto you don’t get excessive aloe vera no one wants.

Don Stengel February 15, 2018

Have you already forgot what Larry Edelson said about Crypto anything ??? NO BOND MARKET to back it and it will go the way of the Euro. Can you make money ? Yes.. But always be cautious. 2nd. Governments will not give up their power to control their money supplies. Speaking of Larry who is carrying on his cycle work ?? I just received this joke of a Financial letter that replaces his. Are you kidding me.????? After all of the years ( 12 ) I have subscribed to your services this is the best you can do ????? I at least deserve an honest answer. Do his kids own it ??? Where did Mike Burnick land ??? Hell you don’t even list Jupiter Florida as your home office ???????

pat reply_all Don Stengel February 18, 2018

With all respect for Larry Edelson,the euro didn’t collapse ,its the usd that gets pummeled down huge again since Larry unfortenatly passed away. his forecasts on gold were not accurate either,I missed the big run up in gold stocks in 2016 because Larry said it was to early,I went in myself later and still made a profit but missed the huge run because of him. The US bond market is a huge bubble waiting for a dissaster to inflict.
Crypto’s are new and one needs to be cautious but it’s doesn’t need to much money to step in and participate and see what happens ,people who tell me they put huge amounts of money in crypto’s are playing with fire now after the big run last year untill early january this year but with small tiptowing amounts of fiat to test the water why not?

Valerio Vella February 15, 2018

This one is a big revolution for everyone, iwill change a lot of on our economy as we know now. Don’t miss it and get on the train now cause the most you delay the bigger are the returns you’ll lost. I’ve learned the hard way… I’ve been into crypto since just a month ago and I saw a big fall but I know there is an excellent technology besides it, so I’m pretty confident I will have big returns in future. Take Ethereum, Neo, Eos, Vechain, WaltonChain. Mark my words.

Greg Michael February 15, 2018

My initial $3k investment in Bitcoin doubled in 25 days before I sold it all.
My second round I got more brave & put in $25k into Bitcoin & Ethereum. Doubled in 40 days.
Sold enough to get my original investment back & have sat on the profit.
Just bought Bitcoin again at $7750. Will sell some Bitcoin & Ethereum when it doubles again & keep the rest in the market.
Folks are saying $150k or higher for Bitcoin…we shall see.

Eric February 15, 2018

I think what gets lost in here is whether cryptocurrencies have intrinsic value, and the answer is resoundingly yes. Blockchain technology resolves a fundamental problem that hasn’t been solved until now, which is the digitization of value. Blockchain allows us to be able to take advantage of all the benefits of digital age (fast, easy transfer), while the contents cannot be copied, and without the need for a central authority. It is revolutionary. Just like in the dot com boom times, while many companies fail, those who succeed do so tremendously. Same thing with cellular phones.

Many crpytos will fail, but those who are able to gain acceptance into the mainstream will be worth trillions. The bull is imho not over by a long shot.

Tebeau February 15, 2018

I have not yet invested in any Cryptocurrencies. I was too late to afford to buy any bitcoins and as you have repeatedly stated …don’t bet money you cannot afford to loosen this is a very volatile market.
I wish I could find a Cryptocurrency that I had confidence in to invest a couple of thousand dollars in.

pat reply_all Tebeau February 18, 2018

BTC is divisable ,you can even buy for $100 btc or even less but the fees are quiet high for small amounts .
Nothing is a hundred percent shure ,less then 2 weeks ago BTC was -$6000 now it passed $10000 again ,so quiet volatile but if you have time to wait I think BTC could go double even triple from here this year,this is no investment advise it’s a speculation, I would like to see it drop to $1000 before buying more ,I first bought BTC a few years ago for about $200 and it took + 2years before it breached the former top of +$1000 early last year ,then it went about +20 fould in 1 year to fall back to $6000, technically we could revisit the former bottom of about $6000 before the next rallye but nothing is shure here,I diversified into other crypto’s but most drop or soar with BTC but some of the crypto’s will make much more profits then BTC in the longer term because BTC was the first one and went up huge from a few cents in 2009 to the level it is now,if BTC keeps alive it could reach even 1 million in a few years ,it’s only mathematics the more adopters participate the higher it will go,its a world phenomenum wich means biljions of people will be able to participate and even when they step in for small amounts the price will go ballistic,the strenght in BTC is because it serves as a platform togheter with ether to be able to buy many other crypto’s

Menno Jager February 15, 2018

Hi,
I’ve invsested some money I can miss. Luckily before the fomo of december and january. So i’ve got my initial investment back. And still around 300% profit.
I don’t get the negative comments.
You can invest in great new business fundamentals. Off course 80% will suffer. But wasn’t that always the case with new technologies. Who remembers the great railroad investments in the 19th century. Or the cazy dot.com hype.
When you check on the fundamentals of some of the tokens, there is great potential.
Coins like ADA, XRP, XVG, XLM, LEND, TRST.
The problem lies in the paradigm shift that is needed.
Check the biggest and most promising companies of any era and there is always cynism.
So i am glad that Weiss is giving out ratings.

And when old boys cry about the lack of assets backing the tokens and coins… Well… Who in the world invented synthetic cdo’s and backed those (The Big Short).

Sorry for my english. I’m not a native speaker.

All the best,

Menno

crypto warrior February 15, 2018

1 no

2 yes, I think crypto currencies are something very hard to understand for people that don’t understand how tuff it is to have little and work your ass of for nothing! They don’t even seem to understand that Gold is nothing more but a chunk of molecules put together. and if you throw this bunch of molecules at a window the window breaks! What is value and what is a store of value anyway, did you ever care to investigate this? it is what a group of people decide it will be. And the Governments of this world have been stealing from the people TOO MUCH! so we decided we create a new value that belongs to the people. And that can be transferred a lot better than what we have now. and that can NOT be controlled by the rich. And can not be printed and if your smart enough you will get it while it is cheap!
yes alot of these crypto’s will die of, but some will rise and shine, learn and profit from the revolution. and save some of your dollar bills as a memory. Because the future is digital!

Marion February 15, 2018

Bitcoin is not an asset backed security, therefore, sooner or later the bubble will burst and it will be worthless.

Rik reply_all Marion February 16, 2018

and “Fiat” is backed by a printer. No wonder the economy isn’t doing so well.

They skeptic has been saying crypto will crash and burn since 2009. It’s 9 years later and still going. An it will be another 20 years later and it will exist. You really should do some research before you call something worthless.

pat reply_all Rik February 18, 2018

Most fiat is not even printed ,it’s digital like crypto’s ,the printing machines wouldn’t even keep up with the wild fiat money creation,so we are already trapped in a digital money world, except fiat creation could be endless untill no buying power left and it ends society as we now it.

pat reply_all Marion February 18, 2018

BTC will indeed end up worthless but not because it’s not asset backed but because of the flaws in it’s creation,if these flaws will not be sorted most btc will vanish in the cosmos (dissapear) when one send BTC or other crypto’s to the wrong adress they leave your acount but dont arrive where you want them to be and they get lost and go up in air,or people who lost and still loose their cryptowallets because of loss of their codes,from the 16.7 million btc currently mined about 5 million went allready lost, so I guess that BTC will still be there over 10 years from now at a probably very high price but half of the mined coins will have vanished,there is also the issue of the quantum computers that will be able to crack the code by then. I think before that happens 1 million BTC is possible in a few years,then you should get out before the big collapse. USD,EUROs,YEN,YUAN are only backed by unsustanable debt,not asset backed at all it’s only an empty promise waiting for a huge fall in buying power.

tom h February 15, 2018

bitcoin is no different than our wonderful fiat currencies that are printed with no backing except debt.
the only way crypto will die is if itis killed by governments ,hopefully the fiat currencies will go under first and bitcoin will follow gold and silver ,it will be viewed as a commodity and that would be perfect ,i think everyone that owns crypto hopes that happens.
gold and silver are the only sure investments ,the dollar is due to crash worse than we’ve ever seen and the signs are pointing to it every day,we where doomed the day Nixon took us off the gold standard, that was the beginning of the end 1971,now 47 years later it is completely unsustainable our debt will never be paid off .
our politicians have raped this country past the point of recovery ,get your money out of banks and invest in physical gold and silver and you will sleep good at night,and buy some crypto with some disposible monies and ride the wave!!!!!

Greg reply_all tom h February 16, 2018

All sensible comments and I agree. To make your work readable and believable, please start with a capital letter and secondly, place your commer directly after the word, not before the next word!!!!

Jim reply_all Greg February 17, 2018

Commer?

Gary February 15, 2018

Cryptos are both Ponzi and risky speculation. Initial buyers and sellers of Dutch tulips were happy campers too but where are they now? Depends mostly on when you buy. Early buyers do well in Ponzi but later buyers beware. No argument that some have done exceedingly well but not everyone will. Not a suitable investment other than play money for most.

Rayando reply_all Gary February 16, 2018

Gary, I encourage you to do some serious research on the subject. Quite frankly, I don’t give much credence at all to the opinion of anyone on this topic, if they have less than 100 hours worth of exposure to block chain and digital asset technology. Start with “The Internet of Money” by Andreas Antonopoulos. Almost all of his speeches are available and free on YouTube. The first time I realized how important BitCoin is, was when I heard of “penta-millionaires” measuring their wealth in the BTC equivalent of all their assets. To me, life is now a race to acquire as much BitCoin (and other decentralized, open source cryptocurrencies), gold, silver, land and businesses as possible. Being “rich” has absolutely nothing to do with the US dollar, in my opinion.

Gary February 15, 2018

Why is it that most stories regarding crypto profits eventually evolve back to $ or another fiat currency gains? Perhaps utility and questions of current versus future value/use?

pat reply_all Gary February 18, 2018

Gold/silver can be bought with BTC ,so no need to go back to fiat,also cars(TESLA) and other stuff and services can allready be bought with BTC,as a peer to peer the perfect way to exchange and or pay for things.

Greg February 15, 2018

Blockchain, the computer programming behind cryptocurrencies is now creeping into the way regular companies do business and will possibly help promote some companies into higher share prices.
Crypto currencies are now owning new types of business such as a new one that is starting. An example is Artchain Global which is going to register the work of emerging artists and provide them with a currency to buy paints etc.
My experience was to put $14000 into various currencies 6 months ago. After taking my investment out plus 10k, my account is now worth $16500 as of today. I plan on flip trading from now on between one currency and another without putting any more of my own money in.

ephram February 15, 2018

Its a scam based on ground level investors getting rich once everybody else makes the pot much bigger.

pat reply_all ephram February 18, 2018

It’s indeed a genious pyramid but not necesarry a scam,but there are flaws because most coins are held by early adopters who got in for peanuts . But btc could even from here make you rich that’s the genious about the set up ,I wont go into details but this could go to 1 million a BTC

mike haller February 15, 2018

I just recently sold all my cryptocurrency. I believe that cryptocurrency is the “currency” of the future and will replace fiat currency; however, after the recent 50% decline in value just weeks before the stock market correction of 10%, I realized that crypto was acting like the canary in the “economy” coal mine. Therefore, it is a good predictor of the market, but I do not want to be in the crypto market during the next correction, which I believe will be much greater and much faster than the last one. I do plan on buying a lot more after the next market collapse!

Len February 15, 2018

I have been meaning to try a few dollars in crypto and now that it is down, I will try to get involved.
Living in Canada I have been told the best or even only way, is to use COINSQUARE. I invented a p.w. which for me
is nothing but painful, and went to sign up and ran straight into another of those things which always disgusts me
about any attempt on the internet….a dialogue box popping up asking for my “REFERRAL CODE”.
Well that like everything else internet was where it stopped, and Coinsquare has not replied to my querie yet…not even one of those no reply emails, nothing.. If anyone knows the way forward i would appreciate knowing.
Hell ….if anyone knows the way forward out of any of these geek inventions ….tell me!!!

Ron reply_all Len February 16, 2018

Len, I personally connected up by using coinbase. Yes, I did it when they were having so many people going through them and so it took me a while (a month) to finish getting my wallet, Id, 2 factor codes, etc. This caused me to lose out on buying Eth at $300 and when I finished Eth was over $700. So lost the potenial $400 profit! That’s part of life I guess. I haven’t had any problems using them. I have had trouble getting a couple pot stocks in Canada, for my two brokerage’s both wanted a fee of $5-7+$50 “out of country’ to buy/sell trades. That’s weird, for I had bought 15 stocks in Canada without that extra fee. That’s sad, for they were my top two picks. I wasn’t going to pay an extra chunk like that for a penny stock, for to recoup my extra $100, the stock would have to really increase a lot to be worth it. Of course Canopy growth is doing good, hindsight is great, huh!

Everton Sebben February 15, 2018

Ive made 1000% in the last 12 months. If i had started investing in Bitcoin back in 2011, i would have become a millionaire by now. Im a Litecoiner today, cuz i believe it works better and faster. Cheaper fees, more potential to grow, smooth and trusted governance. Charlie Lee deserves more attention.

pat reply_all Everton Sebben February 18, 2018

Bitcoin is a platform now not good for small payments,litecoin better for smaller payments but doesn’t have the platform scalebilaty

Nestor February 15, 2018

Despite the coordinated statements of the BIS, World Bank, and other Central Bank authorities after the latest Davos fest, there are some legit cryptocurrencies, and they are here to stay.

However, with over 1,400 coins and with that number climbing every day, it is also true that at least half are more or less naked scams and that the majority (90% or more) will wind up with a value of “0”.

Ether, Bitcoin/BitcoinCash, Monero/Zcash/PiVX, and a few others are not going to disappear.

I want to print a few thousand bumper stickers and sell them in the middle of Times Square, New York. They would read:

BET AGAINST THE NATIONAL DEBT. BUY BITCOIN

or

BET AGAINST THE NATIONAL DEBT. HODL BITCOIN.

The above bumper sticker is copyrighted and I hold all rights. Any attempts at infringement will be prosecuted to the fullest extent of the law. 🙂

Also, what the hell happened to you? I was reading your reports when your father was still alive. And now I see SEC settlements where you admit to falsifying returns on your stock picks?

Come on, your father would be horrified. Show him some respect! You are better than this, and you are wealthy enough to not need to stoop so low.

Regards, a long time subscriber

Crypto-Hotshots February 15, 2018

I love the idea of Crypto.
Peer to peer super-fast, cheap payment systems with no extortionate bank or middleman needed. The technology behind Crypto is here to stay for sure. If you cant see the benefits of this technology for mankind, you must be blind. As far as trying to ban it because its “used by criminals” yeh right, wheres the call for the ban on the US dollar then, trillions of dollars a year used by criminals and all other currencies for that matter. As far “its a fraud”, what’s wrong with this picture? In one hand Jamie Dimon CEO JP Morgan calls Bitcoin a fraud, in the other the CME and the CBOE, two of the worlds biggest regulated exchanges, launch Futures contracts on Bitcoin, hows that possible if its a Fraud? What about “there”s no money in it!” Really? didn’t Forbes just print the worlds first ever “Top 20 Crypto People” list where they are all making hundreds of millions if not billions of dollars a year from Crypto. As far as its a “risky investment”, let me tell you, on the whole, there’s no such thing as investment without risk. Ask all the worlds Futures traders or currency traders using 100:1 + leverage on margin, in a system thats rigged and manipulated against them at every step, then you’ll understand risky investments. Crypto is disrupting one of the most powerful sectors in the world – banking. Bankers control politicians and the media – this is the only group complaining and bad mouthing Crypto because they know their outdated systems are about to be made obsolete and unfortunately instead of employing the hottest Crypto stars and embracing this new technology and making it their own, they would rather trash it… and unfortunately a lot of easily led people fall for their FUD because…well its on the TV and its in the news you know. I was one of those people 6 years ago when i let CNBC guide my thinking with their “dont invest its a ponzi” bs. Hate to think what could of been possible. Coulda Woulda Shoulda will never happen again for me anyway. Go with your gut instinct on this…mine is a solid thumbs up for Blockchain and Crypto, as with anything new, its going to change and change rapidly, providing exciting new opportunities along the way,,with many ups and downs and for me when investing Volatility is my friend.
As with any investments that carry high risk, do your homework, do your due diligence, diversify your portfolio and dont invest all your eggs in one basket. Don’t be lazy, do the work and hopefully you will reap the rewards.
Crypto-Hotshots

crypto currency skeptic February 15, 2018

1) No.
2) Crypto currencies have no intrinsic value. They are only good as long as people agree to exchange them. This is true for sovereign currencies as well. But, sovereign currencies are backed by the power of the issuing government. What are crypto-currencies back by?
Crypto-currencies may be marginally more tamper-resistant that sovereign currencies. But they are also subject to the laws of the sovereign currency-issuing entities. So, they are far less impervious to government meddling that people believe.
Also, crypto currencies are just as dependent upon software algorithms and hardware, just as the banking systems based on sovereign currencies. Thus. they cannot be secured against many of the same types of disasters that would cripple the sovereign currencies. Nothing is without vulnerabilities. In dire circumstances, people will revert to a physical ‘currency’, whether issued by a sovereign nation or not, that they can physically control and hold in their hot little hands. (Think of cigarettes in the aftermath of WWII).
I think some people find it easier to believe in something they don’t understand. The believe the mysterious, magical block-chain will protect crypto-currencies. But how many people who hold crypto currencies understand the block-chain? Should one surrender their financial future to something one doesn’t fully understand? Didn’t we learn anything from the mysterious and magical mortgage-backed securities? Perhaps block-chains are the new “tranches”. A truly informed decision requires understanding. The deeper the understanding, the more informed the decision. Ii seems to me that investing in crypto currencies requires a leap of faith. If I’m going to take a leap of faith, it’s going to be in my own abilities and my understanding of the possible weaknesses and strengths and the risks as well as benefits.
For whatever reason, I think many people have lost faith in the current financial system. So much so that when it comes to crypto currencies, like Fox Mulder, they “want to believe”.

John Humphreys February 15, 2018

Aversge joe has not really heard of crypto and if they have it’s always bitcoin but don’t know what it is or how to invest.(the pizza story)
That’s the time to invest and make your money because when it goes mainstream in a few years if that, governments will regulate heavily and turn it into wall st. Most coins will disappear. Common sense should prevail, think about it if anyone can buy a coin for say .05p (uk) and in 6 months it £20 or £100 or £1,000 who is going to dig your ditches?????? That’s what scares governments

CryptoRand February 15, 2018

Started with about $8k in btc and alts in October. Since then with gains, trades and sporadic purchasing along the way, my totals are nearing 6 figure mark.
All in or stay home!

Tony Verreos February 15, 2018

Dear Doc Weiss, I thought the whole idea of cryptocurrency was be off the records similar to a black market. If so, I’d guess it works like government currency until it stops working. Barter is a fair way to measure value, but not a convenient method. What is convenient is also easier to manipulate – no?

George Karan February 15, 2018

In all pyramid schemes the original ‘investors’ reap all the benefits.
inevitably without fail, the later entrants lose their pants.
Honest Stock Exchanges and Proper governments should never have allowed it.

R Wynn Passey February 15, 2018

Get in early and making lots of money while others lose money sounds like ponzi to me. But I’m more interested in what Martin thinks than everyone else. If he say’s buy then I know not too.

Peyton Smith February 16, 2018

Bitcoin is just another Ponzi scheme.

Larry Fisher February 16, 2018

I have about $12,000 invested in crytos. My wife calls it pretend money. That represents around 1% of my total investments so I’m OK if it all falls apart. I’m not sure if it’s a sound investment, but the potential for huge returns is what keeps me in the game. Only time will tell if cryptos are the future or just the latest investment fad.

Mike February 16, 2018

If I knew the answer to cryptocurrency then I would be a billionaire. I don’t know and no one knows. It is a gamble but perhaps a POTENTIALLY better one than buying lottery tickets.

kenneth fincher February 16, 2018

Right now only about 1.5 % of the population is involve in crypto and we are in wave 1. When the people realize that the block chain technology is the dot com boom all over again, it will be like tulip mania when the course matures a few years from now. I think in the next year we will see wave 2 when it reaches 13.5 % of the population. I find investing in crypto refreshing when you see 10x all the time…it makes stocks so boring and even options for that matter. No one knows for sure, but block chain technology is here to stay for a long time and some of these alt coins are going to be 100x’s and more I believe. There’s a lot of people who see crypto as a revolt against fiat money and the central banks. The elite have controlled the purse strings forever and many see this as bailing out of a system that’s going to fail as history has proved no fiat currency has survived forever.

ROBERT CARD February 16, 2018

Crypto currencies are a fraud.
Criptos have no intrinsic value. You may say that paper U.S. dollars likewise have no intrinsic value.
But the ink that is applied to paper U.S. currency makes it acceptable all over the world.
This crypto mania is even wilder than the “Tulip Mania” but the tulip bulbs did at least have a
value as bulbs to grow some tulips.
There are many people preying on the gullible selling and trading ‘cryptos’ but in the end someone is
going to be left holding the bag of cow excrement. A day will come when one too many persons will ask for their crypto to be converted to dollars and the market will collapse. No one is going to exchange their dollars for
non-intrinsic value criptos. You can’t buy gasoline or groceries with criptos. People who are promoting criptos are committing fraud.
The ‘blockchain’ may indeed evolve into a very valuable and useful adjunct to our technical tool box. But don’t confuse the blockchain with a crypto.

Mike February 16, 2018

One thing I did find when investigating investing in cryptocurrencies was that it would be easier if I was already “an individual of high net worth” (i.e. filthy rich) – it seems the financial world is run by the world’s wealthiest and it is the world’s wealthiest who are given opportunities denied to the ordinary investor. Perhaps it is a ‘distribution of wealth’ scheme, whereby the wealthy get the less wealthy to invest all their money into cryptos and then the wealthy withdraw all that money as the crypto world collapses. Result: The ordinary man has transferred his tiny ‘wealth’ to the world’s wealthiest and they can even more dominate the world.

Roy reply_all Mike February 16, 2018

Exactly!!!

Mark Edwards February 16, 2018

I invested $1100 in ETH in January 2016 at $0.70. Within 3 weeks it had grown 15 times. Along the way I’ve heard from friends and family about it being a bubble and how I was crazy not to take it out. I didn’t.

I have withdrawn about $200k along the way and today I have $1.05 million in various cryptos, all from a $1100 investment.

Some of my friends and family bought in. When my friend bought ETH at $50 his family thought it was crazy – it would never go up higher. When my girlfriend’s sister bought at $160 her family thought it was stupid, it was as high as it would ever go. When my sister bought in at $350 it was ridiculous, her friends said it was at its highest and could not go up forever. When a guy who works for me bought at $800 his coworkers said it was a bubble and he was reckless. Now his coworkers are buying in at $950. All are overjoyed.

The bubble talk is ill-informed. Ether is not a bubble – it is not a currency but has intrinsic value and it’s price will likely skyrocket this year as it goes into use with dapps running through metamask and toshi. I still advise people to buy ETH, we will likely 5x gains this year, maybe more! (I would not advise buying BTC, ETH is a much safer and probably much more lucrative investment.)

pat reply_all Mark Edwards February 18, 2018

There is a crypto that could make ETH obsolete,also smart contracts approach and still in the early days from evolving , Eth could go higher but could crash once the competitor takes it’s place ,we will see,nothing is shure yet but ETH is allready up much and doesn’t give the early massive profit expectation any more

Joe R. Windes February 16, 2018

The answer is in 2 parts:
1. The underlying concept of blockchain would be/is a HUGE boon for world-wide commerce.

2. How best to achieve blockchain (using cryptocurrencies) is still being sorted out so for the time being, cryptocurrencies will be very volatile.

Gerard February 16, 2018

I found Bitcoin begin 2009, talk about it with my stepfather who made his koney in regular stocktrading. I want invest 2500 euro in Btc but he said, it is rubbish…if you want to buy cheap then put your money in India Warrants… the badest step I made in my life was lissening to other!
Still have my India Warrants and litle profit om them… the same Feeling I had with BTC I now have with XRP, bought early and have huge stack. This time people can say what they want, I believe in XRP! And will not start to sell before 100€. It can be the second lifechanger…

pat reply_all Gerard February 18, 2018

I have XRP too because I have more crypto’s to diversify from BTC, but XRP at $100 makes up for 3 trillion market cap? This is huge and almost unbelevable beside the fact Markman Jon claims there is no value in the coin itself it’s the ripple blockchain that will be used between the banks for transferring money internationaly,this is quiet confusing I bought XRP for 15 cents and didn’t take profits when it breached $3 /XRP then felt back to 50 cents now up to $1 again ,dont think it will even get to $20 but who knows maybe $10,will wait and see it’s fascinating that nobody knows the possible futur value of this coin ,it could be huge but if Markman is right maybe no value at all.
XRP is not going to wipe out BTC that’s for shure ,they are total different coins and serve another purpuse

Ran February 16, 2018

It is the future of course but we not sure when it coming.
I am a technical guy and the technologies created are really amazing.
If people do not want the risk it doesn’t mean it is not the future. They can buy in when it is a mean of payment and not much of an investment – that’s fine.

Rayando February 16, 2018

1) Yes, I purchased my first GPU (graphics processing unit) computer from a guy in June 2017 to begin mining Ethereum. He had been involved in BTC since 2010, mostly as a hobby. At one point he had approximately 500 BTC on the hard drive of his computer. When BTC was valued at $0.25-0.50, he wasn’t too concerned about the security of his digital assets. I forget the exact details, but somehow the hard drive and his BitCoin became separated from him. He posted a nearly 6 figure (USD) bounty on the BitCoin reddit forum for assistance in recovering his BitCoin (now valued at $5M). Last I heard, he was not successful in recovering the BitCoin he once had.

2) Yes! I was fortunate enough to start investing in BitCoin in January 2017, when it was valued at $850. The more I learned about this wild new technology, the more confidence I gained in it, and the more money I invested. By default, most people will not understand its value. If they did, then we would all be rich! I’m a technically minded engineer in my early 20’s yet it wasn’t until dozens if not hundreds of hours of reading and research about blockchain, BitCoin and cryptocurrencies that I realized just how powerful this technology his and how vast its implications are. Please read “The Internet of Money” By Andreas Antonopoulos. He is possibly the most brilliant person today to speak on cryptocurrencies. He travels the world educating businesses, governments and individuals on this world changing financial revolution. I buy his book by the dozen and pass it out to friends and family. I do this in part to combat the extensive misinformation that is spread around about BitCoin. The only bubble in our time is the USD, Yen, Yuan, Euro, Bolivar, Peso etc. which unaccountable people print in unknown quantities in virtual privacy. I’ve created 3 businesses from cryptocurrencies and I am closing in on being able to retire, while still in the first half of my 20’s! Its not too late. Quit procrastinating and start learning about cryptos, then take ACTION and begin to invest what you can afford to lose. I’m 100% invested, but that’s certainly not for everyone. Thanks for reading!

bogdan February 16, 2018

I invested in crypto , only mined ones , because it`s a smart tehnology , i didn`t invest untill last year because i didn`t understood blockchain , i wanted to invest a few years ago but it seemed like a scam “Virtual money”, after digging into the tehnology , very hard to understand for me , i finally invested . To attract more money i think some video schematics to show people the blockchain would make the people understand it. I am confident in time that crypto and blockchain will be implemented just like 20-30 or 40 years ago cards (visa mastercard) had a more and more usage in to the world , but they wont dissapear if they collaborate with crypto , if not there is a risk to fade away.

Allan February 16, 2018

To all the doubters on here who feel they’ve missed out. I’ve been involved in crypto since very close to the beginning in early 2011. I’ve experienced the highs and the lows and all the crashes in between. One common theme all the way through is that blockchain technology is not going away. It’s going to change the way industry functions by making everything both more transparent and at the same time more decentralised. Putting the infrastructure in place for widespread adoption is ongoing, it takes time, but it is happening.

To those who make statements like “it’s a ponzi scheme”. Of course there are some tokens that are clearly deliberate scams, you just need to know how to identify them. These are the ones that don’t have any apps or technology associated with them and a fake or non-existent team. But there are plenty others that do have amazing teams and revolutionary decentralised technology, growing communities and a clear roadmap. These are the ones that are changing the world for the better. And these are the ones you might like to consider having a look at.

The traditional Fractional Reserve Banking System, now that is a scam. All of the fiat (fake) currencies that we have right now (USD / GBP/ EUR etc) are not backed up by anything at all, not gold, not silver, and nor are they backed by a limited supply. The central banks have been printing them to infinity which has diminished their “value” to almost zero, and for the first time in history this is the case for every country on planet earth (with perhaps the exception of Venezuela, which is now taking serious steps to adopt Bitcoin on account of its economy collapsing). Most cryptos have value in relation to the underlying technology and also a limited supply. For example there will only ever be 21 million Bitcoins, but that’s just one example. Hawala.Today will only ever have 7 million in existence.

Also, there are certain blockchain projects that are developing systems that are going to back their crypto with physical precious metals like gold and silver. One example is Anthem Gold. So, to write off “crypto” as a ponzi scheme is an over simplified generalisation that is pure nonsense. The good technologies associated with crypto are here to stay and they will thrive. Whether you want to get on board or not is entirely up to you. Just educate yourself first before making sweeping generalisations.

Julian February 16, 2018

I’ve entered crypto world using 10% of my total savings end of December 2017, very late.
Due to lack of experience I’ve invested just before the biggest dip …
I’be been at plus 15% initially but after the latest crashes minus 65% ; right now I’m at minus 50% and hoping to recover my loose.
Everything is possible, one can make a fortune, other can loose everything.
Anyway it is good experience, I’ve learned to be patient, and developed stress immunity.
Thank you Martin for trying to help us, the rating info is very useful.

Filthy Witch reply_all Julian February 16, 2018

The good news is that you didn’t invest in the biggest dip. Bitcoin once dipped double that in January. And you should know that it’s had similar dips during the period of Chinese New Year every year before.

All the new retail money that rushed in during December, when it hit $10k, caused an over-valuation and this correction is healthy. Hold on to that much longer — the private money came in but the institutional money isn’t here yet.

pat reply_all Julian February 18, 2018

Never get in when something is up 20 fold in 1 year ,that’s asking for trouble ,but if you’re patient and didn’t put your money in scamcrypto’s you will still make nice profits

attilio February 16, 2018

Bitcoinis only for cheater and “zocker”.
My hard earned money I want to invest in serious ways although I am inclined to accept some higher risks for some higher returns. That is what I have learned through my experience from life.

pat reply_all attilio February 19, 2018

Crypto’s are not an investment its a speculation ,but with huge potential of profits,a stockmarket that is hugely overpriced is not an investment either ,it’s a gamble for fools who think they will meet an even bigger fool to buy the shares for an even more insane price,only after a huge general market crash it”s worth buying stocks as an investment ,or if you can buy shares in a niche that is left behind and very cheap like commodities in general and gold miners for this very moment.

Andra February 16, 2018

I’ll tell you what I think about this story. With all due respect, this is not what I signed up for, when I subscribed to your newsletter. I expected solid analysis from financial experts. Instead, I’m getting clickbaity ramblings. So far, I’ve gotten “Scam or goldmine? What do you think?” and “Beyoncé’s mansion for the cost of 2 pizzas?” What exactly am I supposed to take from all this?

pat reply_all Andra February 18, 2018

There was a guy who bought 2 pizzas with bitcoin in the early days,if he would have kept his coins and payed with fiat for these pizzas ,he would be sitting on a fortune now, bad luck for the ignorant who had more repect in value of fiat then in BTC

Otakar Spacek February 16, 2018

I have heard those stories. Some of them may be genuine (1%?), most of them are part of the brainwashing scheme, to generate a “dutch tulip” type of hysteria. This is a totally disgusting scam, much worse than any paper (fiat) money in history (including US$) non-convertible to precious metals. My computer is not my Fort Knox. When they finally turnoff the lights, the Bitcoin value will be down to 0.

Filthy Witch reply_all Otakar Spacek February 16, 2018

You should know that your money is wired to every global computer in the world already, not to scare you. All banking systems are online. Your money isn’t a stack of bills sitting in a little vault with your name etched on it.

When they turn off the lights, you won’t be able to get your money either. And that will be the least of your problems.

pat reply_all Otakar Spacek February 18, 2018

When they turn off the lights the total economic bubble scam will implode ,do you think of an economy without internet is still possible? Gold can be bought with Bitcoin online,do some research, tesla cars can be bought with BTC,even real estate was allready acquired with BTC ,In Japan BTC is made a legal tender equal to their fiat YEN.
BTC should not be stored on your computer ,you can write the seeds down on paper and reclaim them after potential problems with computer and or interfearance of any other obstruction or ,keep them in a cold wallet totally secure and separate from your pc, wich makes it unhackeble and save storage,you are ignorant make an effort to get to know what its really all about,but nobody is obliged to be part of it,if you dont trust it dont be part of it but inform yourself before making a judgement,nothing is a hundred percent shure in life only taxes and that we will all die.
BTW rumors are that there is no gold in Fort Knox since many,many years,fiat is only an empty promise,wake up

Mari Venter February 16, 2018

Martin,
Just a short note: what I found interesting is people’s reaction to the fact that I am investing into Cryptocurrencies – they get this shocked expression on their faces, they sent all the negative articles, written by people with no proper insight into the matter, warning me about this huge mistake I am making. I might loose ALL my money!! But, nobody questions me when I spent money on expensive shoes, or handbags or food or air tickets!!!! Isn’t the money just as ‘lost’ at the bottom of my closet in the form of that pair of shoes? Yet nobody cares about that money! Must say, these days, I think twice!!
I am grateful for the different platforms that makes it so easy for mere mortals from around the globe to invest these days, not only into cryptocurrencies. For me it has become an interesting game and something positive to apply my mind to.
Kind regards!

Steven Hancock February 16, 2018

A lot of the comments focus on the financial viability of bitcoin and others as an investment. I have been on both sides of that coin, but mostly on the positive side.

However, one of the main reasons I invest in crypto is because of the amazing technology behind it. I believe blockchain technologies will change so many things in the future. That was the main reason I got in 4 – 5 years ago and it is the main reason I expand into newer blockchain tech. When I’m able to cash out on some returns and or use the crypto currency, it is a bonus.

David Sumner February 16, 2018

This the tulip bulb craze of the 21st century.

Filthy Witch reply_all David Sumner February 16, 2018

Hah, maybe some projects could be this.

But you should really read on how JP Morgan is building a private blockchain, on how Ripple is bringing faster remittances to Western Union and Moneygram, and how Stellar Lumens is working with IBM to enable anyone in third world countries with no documentation to have their own online bank account, regardless of their financial status.

These are powerful, earth-changing technology projects. They are certainly not fads.

Jimbo February 16, 2018

I pity the fool that just can’t see the potential for crypto, it is the digital equivalent for money. It is technology at it’s finest. I got involved with crypto in 2015 so i got in early. Last year in 2017 alone i profited and cashed in over $200,000. Any investment advisor is not doing his clients a service it he isn’t pushing them to invest a portion of their investments into crypto. Others say they recommend 2-3%, some say even 10% of someones portfolio should be going into crypto….i like it, get involved. In just the past 12 months my crypto gains are…..bitcoin 900%, etherium 7130% and litecoin 5806%, these numbers come straight from my exchange website….you guys got anything you want to sale or pitch to me that even comes close to that? Do you even know what a 5000% gain looks like? It is amazing, if you can’t spare 2-3% of your investments in something like this you are missing the boat, it is not too late…but get involved sooner rather than later…

Christopher Slevin February 16, 2018

Looks like a great short term investment with the opportunity to make a sizable profit and then cash in 90% and gamble with the rest.

pat reply_all Christopher Slevin February 18, 2018

The tulip bubble was a local craze ,not a world size phenomenum as crypto’s are with potential billions adopters and only a few tens of million people in it today ,the potential expansion is huge ,because you dont need to be rich to take part of it so the scalability will make it giant thing at least the next 10 years.
What do you think about the current stockmarket value is it a craze? Yeah and a huge one when many stocks are valued at ten times or more of their intrisic value,that’s a huge bubble wich will deflate when the air leeks out

Jimbo February 16, 2018

I pity the fool that doesn’t see the potential for crypto…it is digital money, really amazing code and technology. Any investment advisor that isn’t recommending a portion of their clients money in crypto is not earning his weight in salt. I encourage maybe 3-5% of your investments in crypto, it is the future of money. My bitcoin is up 900% in 12 months, etherium 7158% and litecoin 5884% straight from my coinbase account as i write. You ever seen a 5000% return, on anything? It is incredible. That is a 50X return, can you show me anything that even comes close? If so show me i will buy it in a heartbeat. I am buying some select ICO’s using ether i bought for $10 last year. What do i have to lose, really? It is house money, i love it.

R. Davis February 16, 2018

About 20 years ago, I got sucked into a Ponzi scheme. But, I was very cautious…until the end. I kept pulling out my “earnings” until I was convinced that it was legit. Then, when I received a large check that I had requested, I sent it back to re-invest. That’s when law enforcement got involved. I actually made a few bucks, but not many. I was fortunate not to have lost money, but also not to have gained enough to be “clawed back” by the authorities. So, why would I invest in something that has no financial backing whatsoever–except the money that came before me? At least with these devalued dollars, we still have the full faith and credit of the U.S. The moral to the story is, the Ponzi scheme is fine if you get out in time. If you stay too long, you are toast. Good luck.

Filthy Witch reply_all R. Davis February 16, 2018

Think of the headlines about the Internet in the 90s. It was a place to get your credit card stolen and only used by pornographers and it was going to eat your children. That’s all the media said.

There are ponzi schemers in crypto, but there are also very brilliant projects by the world’s top universities and mathematicians that are certainly not. I recommend reading about the Cardano Foundation, or watching a video from Charles Hoskins on youtube if you don’t have time. Or any video by Andreas Antonopolous on Netflix. These guys aren’t selling anything, run non-profits, and will give you a better glimpse of what’s coming.

pat reply_all R. Davis February 18, 2018

Most cryto’s are no ponzi but will lack adoption in the economy so not to survive ,but the few that will are going to be huge,
BTC is in my opinion as most crypto’s is a pyramid and the early adopters get filty rich,the later adopters can still make a lot of money but the biggest gains are gone now,but could still reach $1 million/coin which is still a nice profit but will some day distroy itself by flaws in their setup wich will still have to be discovered, but this could take another 10 years ,if one stays untill the collapse that is a moron not to have taken out profits before the end,nobody knows now wich are the eventual survivers maybe new cryptos will emerge that will wipe out all the existing ones today.

Chester Millar February 16, 2018

I think if a government will accept paying taxes with a crypto currency then that currency is truly valuable. However I don’t think governments will do this.

And then there is the threat of hackers stealing them.

pat reply_all Chester Millar February 18, 2018

They did confiscate BTC in some cases ,what are they doing with these coins after having taken them?
In Japan BTC is a made a legal tender so I guess Japanese can pay their taxes with BTC, guess who is stealing the buying power of your fiat money now?
BTC can be set save from hacking

michael February 16, 2018

Hello! How do we buy Criptos??? Thank You

Filthy Witch reply_all michael February 16, 2018

You need to register with an exchange. The most popular one for Americans is Coinbase, Gemini, or just get Robinhood on your phone.

Wella February 16, 2018

cryptocurrencies are the financial platform of the future.

get on board or get lost.

Jason February 16, 2018

Your opinions are ill informed and very dangerous. Cryptocurrency trading is nothing more than gambling.

Filthy Witch reply_all Jason February 16, 2018

Jason, you should look to the East. Bitcoin is legal tender in Japan already as of last year. In the 80’s, while you and I could have not dreamed of having our own cell phones, they were using their phones to buy food from vending machines, pay for train rides, read the news, and get the weather. They are so far ahead in digital and crypto profits are already part of their annual tax forms.

South Korea, Thailand, China, and Singapore are already following suit. And Venezuela — not all cryptos are alike.

Just like the tech stocks in the early 2000’s, you can’t pick any one and hope for a winner. But in 10 years there will certainly be dominant winners.

Ed H February 16, 2018

Martin your right on the money, this is going to put an end to the stealing of taz payers monies and giving out crumbs to the minions?

Phil Issenberg February 16, 2018

I have one big problem with this…. Academically, it makes sense. The biggest issue for me is, accountability. Another currency with only the value that you can barter with. Controlled by whom, more politics. More corruption. Just a set of new talking heads….What am I missing?

Roy February 16, 2018

This comment in the article I appreciated: ” Consider fiat money like the British pound or the U.S. dollar, for example. Care to guess what the foundational application is? Historically it’s been the fact that you have to use the currency to pay the tax man.
That’s right. It’s generally agreed that the original value anchor for a government’s fiat money is the payment of government taxes.”

But the statement, as good as it is, is really half baked. Because you neglected to clearly mention the most important part! That is that governments will ONLY accept their own currencies as payment for those taxes. That’s the most important point! How could taxes be a value anchor for any currency if, say, gold would be accepted as payment for those taxes? In that case taxes wouldn’t be an anchor for that fiat currency at all. The point is that that country’s fiat currency is the only payment accepted for your taxes. And that gives a fiat currency a kind of “Synthetic (a man made) Intrinsic Value” .

Question: Why should a crypto-platform be trusted? What even is it? Who controls it … and how do you know? It sounds like the whole thing a Bernie Madoff wet dream come true! If it robs you blind … who and what do you take to court to get reimbursed for the theft?

Actually gold is a fiat currency. But I trust the gold-platform … because I know who is in charge of it, and him I trust. Crypto-platforms? Not too much.

Dick Chase February 16, 2018

Crypto platforms appear to be the new ‘virtual real estate’. I’ll be homesteading my claim without hesitation. The future is coming on exponentially!

Laurent February 16, 2018

Excellent explanation for a complex subject. It confirms what I’ve already read about from a knowledgeable source. Recently invested a small amount in 11 different cryptos (in a few that you mention in the article) and my small 28% gain in a few months makes me wonder whether investing in traditional stocks, where the majority of my liquid assets reside, is worth the effort after struggling to break even.

Looking forward to more insightful articles.

Sue reply_all Laurent February 17, 2018

Laurent, Thanks for sharing. I’m just starting and could use some advice where to begin.

pat reply_all Laurent February 19, 2018

Stockmarkets are very match manipulated by banks hedgefunds and cental banks,nothing is real it’s all articicially fixed that ‘s why some stocks become too expensive in the build up mode and others which are cheap are kept low, why go goldstocks up several percentages one day to see the day after the gains set off again and going nowhere for long periods?
For quick profits the crypto’s are much more intresting also ,one can buy for quiet low fees and still be able to make nice gains with small input,it wont last forever but for now this is the place to be for at least small or even greater amounts of speculation money

Shawn February 16, 2018

Couldn’t have said it any better Martin…so glad to here a bit of common sense here…You saved me and my father a lot of money back in 1999 and in 2008 by warning us of the cesspool banks and companies that were ready to implode…it’s nice to see you are looking into crypto now….the Coins and Tokens that have the best user cases and financial stability are going to be the ones that rise from the ashes…look forward to following your research and grades

IAN February 16, 2018

It is getting people to change /people will always wait to see if others fall on there faces before making a move themselves /then it is to late and they moan the horse has bolted Myself I am happy with stocks old school regular income not so volatile

Marv Rudin February 16, 2018

How does one pay the IRS with cryptos; how does one pay legal fines with cryptos. Don’t they only accept the dollar as legal tender?

Filthy Witch reply_all Marv Rudin February 16, 2018

Same as you would now, through an intermediary bank or service.

For example – present day: We can’t pay the IRS with Paypal yet either (despite it being the #1 way to send internet money) but I can convert my virtual paypal balance and move it to my bank account to send a wire or write a check.

Banks are testing cryptocurrencies for remittances now, so the irony is that cryptocurrency may be used to move your money behind the scenes before the IRS accepts crypto.

Alice February 16, 2018

You make a very good point. I’m almost convinced.

Sandra Kallander February 16, 2018

Cryptos are fiat currencies, just like the dollar. For most people, the value mostly comes from the ability to convert the crypto into their local fiat currency, most of which are tied to the dollar. The way I know this, is, most people list their reasons for owning it in dollar terms.
But how is that any different than gold or silver? Easy. Seventy-five percent of people are “sensates” who see the world in weight, texture, color, and other physical attributes. They value things in those features plus utility. Digits in cyberspace are not real to them. Gold and silver have been real for thousands of years–they are the only reason that paper dollars and subsequently digital dollars exist: they formed a habit of accepting paper receipts for the real thing that has carried over to mere paper (and digits). The foundation that has been kicked out from under the dollar (gold and silver) is also gone from under cryptos.

Mathmatical and theoretical blockchain technology can’t be envisioned. Until they’ve spent as much time trusting it as people who remember life before ATM’s, have had trusting ATM’s, they won’t be comfortable (and my mother still does not use an ATM). Seventy-five percent of people see their friends getting rich, and some of them will jump on board, but there is no loyalty there. When they see cryptos vanish or crash, they will jump off.

Much of the population born after we started printing paper money in the U.S. trusts — to some degree — the dollar because it has been around for their lifetime. But those who study economics, history, and can think abstractly (25%), are aware that a fiat currency can’t be trusted. The longer one lives, the more one can see the value eroding.

Those of us who like the idea of decentralized, market-valued, alternative money, are in the minority. Most people only see the utility of something physical. Many of the former have overlooked the fact that cryptos are mere fiat currencies, without any limit on the competition, and subject to government control despite their hopes (the same way we “voluntarily” pay taxes). Many of both types will be wiped out.

Even though I heard about bitcoin years ago from early, early adopters, I could not bring myself to sell this fraud to anyone else, as many of my familiy members could be among them. I can’t imagine any crypto surviving the final demise of the dollar. Even though one could exchange it for another currency somewhere else, imagine the flood of people wanting to do the same at the same time. Besides being difficult to use for purchases across borders, those prices would be going up. No, if the dollar goes down, so will the cryptos. Gold and silver will still be gold and silver. Honest money.

SBH February 16, 2018

I’m still curious how you came up with ratings for crypto – what were you comparing it too? Perhaps the intrinsic value of the digital asset (crypto currency or token) might (in some cases) be defined by solving a real-world use case which is tied to their blockchain. As an example, Ripple intends to solve high costs of payment remittance/inefficient corridors primarily for banks, and payment providers (consumer market might come a few years down the road ie. Amazon but tentative). This solution solves a multi-trillion dollar (maybe even quadrillion dollar problem). Many banks are getting ready to implement xRapid but even it’s not quite “in-use” … yet …doesn’t mean the solution doesn’t have an intrinsic value associated to it. This will bypass SWIFT completely and is only one example. Not every crypto is out there to become an eco-system, some are there to solve very specific problems.

I agree on the intrinsic values of precious metals as they have thousands of years of history. Maybe even coloured diamonds depending on what you’re looking at (Argyle Diamond Mine).

I’m not sure where the ‘thought of value’ came into inception that the original value anchor is based on ability to pay government taxes but there are both keynesian and austrian economics perspectives. I’d be of the austrian-type that says less government intervention and more freedom. Perhaps there could be a different value anchor than using government as the benchmark for paying taxes as the libertarian/anarcho-capitalist type is definitely looking for an alternative to this. When people spend half their lives working for free (courtesy of 50% going to taxes on income, products, etc.) they’re looking for alternatives as paying such high rates doesn’t make it right even though governments will continue to bully people to pay them when they’re useless entities themselves so governments can spend frivolously in largasse. People are so concerned about paying their share of taxes that they forget they’re being robbed considering the high tax brackets….doesn’t make it right.

Which do you think is worse for the economy? More politicians? Higher taxes? We all know the masses work and pay taxes to sustain the limited and elite “few”, but they choose not to be enslaved by this, will work amongst themselves to generate economic propositions even if crypto is in it’s embryonic stages….to create intrinsic value between themselves and their own crypto.

If i can buy precious metals with crypto, real-estate with crypto (ok, bitcoin in this case), i don’t really care what government thinks. They are only government shills free-loading off the sweat equity other people have earned, never really represent the people paying taxes, and those people “en mass” are never heard anyways. There will be continued attempts to thwart the deep-state, governments, and other entities that steal money from hard-working people through mechanisms such as crypto-currency/tokens where they can create their own eco-systems.

pat reply_all SBH February 19, 2018

Smart contract crypto’s are very much the innovators and will eventually liberate us from useless middleman like real estate brokers ,loyers etc and even evolve into a gouvernment free of polticians instead ruled by a super computer for a real democracy that could free us from the current kleptocracy full of corruption manipulation and organised theft from the masses in favor off the so called elite.

Dennis February 16, 2018

Yes, I think cryptocurrencies have intrinsic value too a limit. They are no different than any other commodity. Their individual value is a consequence of user-demand. The more silver mined, the less it retains its value. The more cryptocurrencies that are developed, the less demand for each one and the value diminishes and there is no limit to “inventing” a cryptocurrency.

PJY February 16, 2018

I believe that cryptocurrency does have value; that time, protocols and safeguards are all that’s needed to build confidence in it. Futuristically, I can see a digital currency easily becoming a ‘one world currency’. I have not been able to invest in it yet – still researching on how to do that.

Bob L February 16, 2018

Bob L.

Great article! When established companies accept cryptos for payment as they have Bitcoin it puts a stake in the ground of the confidence of the crypto as a means of exchange i.e. platform. Problem is the value of fiat currencies can be effectively bypassed and as the article states so is the means to confiscate for government tax purposes. As with most financial transactions today money is just electrons flowing around the internet. Hackers have confiscated all forms of money from all sorts of vaults (databases), its only a matter of time when governments do the same with their control of the internet as they see fit to confiscate wealth under the tax umbrella justification. The BRICKS have taken steps to be free of certain interventions and transacting in the USD with the yuan based platform. Where this all goes is beyond me but but it probably would be a good risk for all investors and traders to have some skin in this game but nothing you can afford to loose, like going to the casino with only $100 in your pocket. The question is like all investments “What to Buy” and it seems much more complex to ferret out than stocks or other old school investments.

Sherlock February 16, 2018

Let’s say some criminal organization like the Mafia issued their own cryptocurrency so they could launder money from prostitution, illegal drugs, child porn, smuggling guns and humans. Wouldn’t we demand the Feds shut it down and prosecute them as criminals? Yes.

Crimes are being committed and paid for today with some of these cryptocurrencies. Money laundering for criminals involved in prostitution, illegal drugs, child porn, smuggling guns and humans. Then there are the criminal hackers working in North Korea and Russia who steal millions of dollars from unsuspecting cryptocoin speculators in the USA. There are reports that Nigerian scammers have moved into cryptocurrencies.

The SEC needs to shut down trading in all cryptocurrencies so the companies can be investigated and either verified as legitimate or their founders arrested for money laundering.

Filthy Witch reply_all Sherlock February 16, 2018

97% of criminal money is printed by the federal government using serial numbers and bar codes and other inferior technologies invented in the 50s that cannot stop criminals. This is not a “fiat” problem, right? It’s a criminal problem.

So when 3% of crypto crimes happen, they’re not a cryptography problem, now are they? Do you see how that works or do you need me to explain it again?

And as a matter of fact, cryptocurrencies are in a public ledger – a database of how those tokens have been moved around. So it is more possible to trace and track that money by law authorities, as the technology matures.

whay reply_all Sherlock February 17, 2018

The biggest money launders are the banksters. Bank of America, Western Union, and JP Morgan, are among the institutions allegedly involved in the drug trade. Meanwhile, HSBC has admitted its laundering role, and evaded criminal prosecution by paying a fine of almost $2 billion. HSBC, the Royal Bank of Scotland, Lloyds, Barclays and Coutts are among 17 banks based in the UK, that processed nearly $740m from a vast money-laundering operation run by Russian criminals with links to the Russian government and the KGB. Mexican Drug Cartel Laundered Money Through BofA, FBI Alleges. Citigroup agreed to pay $97.4 million in a settlement after a long federal investigation into Banamex USA. In exchange, the Justice Department will not file criminal charges against the bank in connection with inadequate oversight of Banamex USA. Money laundering by big banksters are in the multiple of $Trillions. To those who still accuse crypto, (with a less than a trillion capitalisation) being use for illegal laundering purposes should stop sticking a boot into your own mouth!

flb2 reply_all Sherlock February 17, 2018

If your talking about money laundering just look up your local US banks that have been caught doing this. Do a google search for Wachovia bank drug money laundering. That’s a real story. The fake news about the Dark Net and the crypto market are written to keep the status quo. You must like how things are going right now.

Mik reply_all Sherlock February 17, 2018

Let’s say some criminal organization like the Mafia issued their own FIAT money, let’s call it USD so they could launder money from prostitution, illegal drugs, child porn, smuggling guns and humans. Wouldn’t we demand the Gov shut it down and prosecute them as criminals? Yes.

Crimes are being committed and paid for today with some of these FIAT-currencies. Money laundering for criminals involved in prostitution, illegal drugs, child porn, smuggling guns and humans AND MAN-SLAUGHTERING IN IRAK, LYBIA, AFGHANISTAN, SYRIA, SERBIA, WWI, WWII and ……. no end. Then there are the criminal hackers working in US, UK and EU who steal millions of dollars from unsuspecting FIAT speculators in the WORLD. There are reports that US scammers have moved into FIAT AND CRYPTO currencies.

Someone needs to shut down trading in all FIAT currencies so the companies can be investigated and either verified as legitimate or their founders arrested for money laundering.

Buddy, what shall I say about your writing…? Maybe you are Sherlock but definitely no Holmes!

Robert reply_all Sherlock February 17, 2018

Some people use cash to do illegal things. So should we outlaw cash?

Heisenberg reply_all Sherlock February 17, 2018

It’s called Monero. And Dash. And Zcash, and its fork – Zclassic. I prefer Pivex. More reliable, cheap and easier to stack. Yet, i would buy ZClassic now and hodl till 28 Feb as Bitcoin-Zclassic snapshot is made, in 1:1 ratio for Bitcoin Private fork. So, if you need to pay for illegal drugs, weapons or prostitutes you still can use cash dollar, or not carry that heavy weight and just use the above-mentioned altcoins. They are totally secure and private for the transactions.

Criminals where always there. They use whatever is easy to use. And no matter how much you try to control weapons, printing money, diamond industry, or gold supply – you may try. But there is no way you can control ones and zeroes.

pat reply_all Sherlock February 19, 2018

I guess most illegal practices are still setled in fiatcash,are you going to abandon cash because of this reason?
Btw why do tou think the maffia is still thriving because of political corruption going on,this disease wont stop when crypto’s dont exist anymore ,some specific (smart contracts) crypto’s could even be implemented to stop this maffia problem , I wont go in further deails ,just think twice and get informed about what changes are going to take place with crypto and the blockchain technology.

Lynn Bittel February 16, 2018

This the biggest CON game ever invented !
I have been an investor for 61 years.

Robert reply_all Lynn Bittel February 17, 2018

I am 88 years old and except the new way of using an honest, safe, self controlled, free, international, currency that can be send anywhere in the world for less than 1% fee within an hour, with no middlemen taking some of it,

Bob

Filthy Witch February 16, 2018

Guys, seriously, please work on the tone. Both your last posts read like you wrote it for a teenage audience.

No, they’re not virtual nations. They’re technology platforms, an important new internet layer. Don’t be weird.

Most people don’t know that the US dollar isn’t backed by anything. From wikipedia: The Nixon shock was a series of economic measures undertaken by United States President Richard Nixon in 1971, the most significant of which was the unilateral cancellation of the direct international convertibility of the United States dollar to gold. There’s an arbitrary amount of gold in the reserve and the rest is just like Bitcoin: people believe in it because they like to.

The value of Bitcoin is the incredible computing power that goes into its mining and scarcity, as well as its utility. When a merchant gets paid by visa it is days — read that again — days. Visa may transact many thousand times a second but it cannot settle for days, whereas new generation coins do this in seconds. New protocols are being written to freeze and retrieve assets stolen and hacked, whereas if someone stole your cash or visa card now it’s this huge hassle and the money is surely gone. Governance is making a lot of traction too, with know your customer systems to keep tax payers honest at fiat exchanges.

There is no doubt that cryptocurrencies will replace a certain amount of use away from credit cards and bank savings products, because they’re not closed on the weekend and don’t need to be exchanged while traveling or put in a safety deposit box, those things are inherently in the tech.

If you’re over 50 and this is making your head spin, think about the older gentlemen ahead of you and their thoughts about the internet and email. How long did it take them to send an email? I bet even some on you young people couldn’t find someone to email back in 1993.

Crypto is email. It’s money at at internet speed. It is a multi-trillion dollar industry, currently valued in the billions. You would have to be foolish to not put a small percentage of your portfolio into this technology.

William Taylor February 17, 2018

Very excited about that ICX though. Is it covered in your reports? I think it is extremely undervalued when you take into consideration its real-world applications.

john s February 17, 2018

Forget about BTC invest in XRP. It will be one of the few survivors of the upcoming regulation.

John R Knox February 17, 2018

I agree with what you say. My one concern is that can our or a government prevent its use? A currency without government interference would have a huge advantage. Note the $1000.00 bill is no longer at banks.

robert pavlik February 17, 2018

Here’s my short take on cryptos:
Opportunity? Yes. Scam? Yes.
The .com Era had hundreds of new companies. 95% were scams or failed. The PROBLEM was finding the 5% winners.
20 years later, Cryptos present a very similar quandry: There are thousands cryptocurrencies. Many are scams. 95%+ will FAIL and take investors hard-earned money with them. The problem remains: Somehow picking the FEW that will be big winners.
Peace.

Mike February 17, 2018

I’m still not clear on all of your explanations. I have made a decision to stick my toe in the crypto world with a small amount to start with. The part that scares me is how crypto gets hacked often and the fact you have to have so many passwords. A password for the platform, for your wallets and you need to make long passwords. Then, you must keep them in a safe place not on the Internet. You mush write each password and keep a copy stored in a safe place in your home and also in your safety deposit box at the bank. Then, you have to use a password to get your crypto out of a wallet to either cash in or to buy other cryptos. If you buy other cryptos, you have to have another wallet and another password and it starts all over again. This rigmarole has to be improved. I’m busy now making up long passwords and writing them down. Making two copies one to hide and one for the bank etc.etc. etc.

Charles Anderson February 17, 2018

Very interesting article and the St. Louis Fed Chief echoed your thoughts as well. As a laymen Economist I 100% agree that use in commerce will determine the value. Intrinsically NO a coin has no value as a digital thing. We are building our coin around the Self Storage industry because each month there are large numbers of payments which is DEMAND. Without that demand and if it’s not used in commerce there really is no value. But look at the coin Waves, they have an exchange a wallet and each time you move coin, they charge a little piece of Waves, so you have to buy it in order to use their service, ie DEMAND. Same with Ether and others. But there are many cool and interesting projects that may have an interesting twist on the tech, but no real use in the real world. Will those survive? Who knows but it’s a very exciting time in the Crypto world and hopefully scammers will be eliminated and dealt with harshly like the days of penny stock scammers were.
Charles Anderson
Founder Self Storage coin
@storcoin

Hugh Baker February 17, 2018

1. North Korea was a false flag to hide the true identity of the attacker.
2. Crypto currencies are play money.

Francis Millker February 17, 2018

I have a question rather than a comment. How long do you think it will take for the price of the crypto-currencies to stabilize? I believe our history with fiat currencies has mostly been down for rapid changes.

Shaji Manghat February 17, 2018

Your transparent and unbiased rating will bring light to the darkness and murky crypto world. Please continue with your rating. The whole world is in support for you. The world will realize the value of your rating by year end.
May God Bless your rating agency. I pray to God for more strength to your rating agency.

John Kinnunen February 17, 2018

The question I have is what about all the crypto currencies.
In say the USA to pay for diverse goods and services you can use the US dollar.
But with so many cryptos one would have to carry numerous crypto currencies to pay for gas with one, the grocer with another, the local taxes with another, an airline with another and a ski resort with another. That is definetly not an advance over our current system.
It would be like having to carry Canadian $, British pounds, Euros, Swiss franks, Yens and Yuans plus US $, in your pocket in order to make everyday transactions. That is lunacy!
Also until the values of cryptos stabilize they are useless. Imagine having to pay 20% more each day for the same item at the local store because the value of your crypto currency is falling like a rock, not due to any real economic factor.
Perhaps there is a future for cryptos but that seems to be over the horizon for now. It seems more play tool for those who have enough of basic needs then for the billions of poor scrambling to make a living.

robert ulivieri February 17, 2018

if you don’t understand it don’t invest in it………….

robert ulivieri reply_all robert ulivieri February 17, 2018

you mean invest …………………..

Michael Wright February 17, 2018

Cryptos are just a new asset class that forms a sensible part of a diversified portfolio –
ie. so instead of having stocks, bonds, property, precious metals and cash. you have stocks, bonds, property, precious metals, cash…..and cryptos.

Mike, Perth Australia

Suanne Gerard February 17, 2018

My knowledge of cryptocurrency is very minor but I understand perfectly well the concept that anything is worth its assigned value as long as others accept it at that value, What I don’t understand is the wildly fluctuating values placed on cryptocurrencies. I also wondered about it when a friend called touting a bitcoin MLM.

Gerald L Bailey February 17, 2018

Bitcoin is a fiat pyramid of digits. What backs those digits? Other incoming digits. Now with the approaching cashless society, (worldwide), the dollar will become simply electronic digits. Its fiat value is the value of the US Dollar and whatever value one assigns to it. Due to Debt, US is undeclared bankrupt. But it is what’s supported by the Gov’t. But under the ruse of eliminating the $100 bill as a starter, the US will move to the cashless society. It can trace all activity and eliminates the underground economy and that’s what one of the reasons will be given indirectly. Fact is all people whose income is covered by W-2s and 1099s the Federal Gov’t can just send one a Tax Assessment each tax year. Any other crypto fiat digits will be rendered moot and about worthless. Because the US Gov’t will bring strong regulations on it also.

Hapuna February 17, 2018

Crypto currencies have no value because they have no physical presence. They are an idea without substance. They exist only because enough people think they exist. Blind faith much like that of religion. Of course, religions have existed for millennia without any real physical proof of God. But we must realize that faith/trust can live a long time without any physical manifestation.
I would also like to point out that cryptos do exist in giant servers. However, massive energy is required to maintain those servers worldwide. And what about the energy that is required for other things? Metals and paper require energy only once to exist. Who pays for and provides that energy? And what is the cost to the environment to energize those servers?
I can almost guarantee that during an EMP attack against a nation that all crypto will vanish. Then what? Cut the lines that carry the information or simply threaten to inturrpt it (for ransom)? Crypto is inherently unsafe. Sure it is apparently much more efficient and faster and seems to cost less to utilize until you look at the total cost and security issues.
Even now there are many thousands of frauds occurring with cryptos. What is a person’s recourse if scamed?
The stampede to use a private currency is understandable, but very dangerous if one looks at all the ways it can be misused by hackers and other criminals and even nations.
I will stick with physical metals. Do what you want. Just remember that the greed you are feeling (for appreciation of your coins) will be used against you by scammers.

John Sharp February 17, 2018

In my 80’s I now consider the crypto’s the freedom I had always hoped far. Our wealth is private. Keeping it so with crypto’s is coming and I welcome it.—JS

Bob M. February 17, 2018

To prevent replacement of national currencies by crypto currencies and to avoid worldwide debt crises now likely, why wouldn’t President Trump lead other nations to reset world currency values and tie them to a gold standard as he has said would be preferable to the fiat money system now used by national governments that can be printed and therefore devalued at will?

Can national governments somehow otherwise prevent cryptos from replacing their mandated national currencies so as to limit the use and values of crypto currencies?

How can users of crypto currencies be assured that the value of those currencies is not manipulated or hacked to steal wealth?

Why would an ordinary US citizen want to use crypto currencies instead of a reset US dollar tied to gold?

Mark Frantzen February 17, 2018

You can listen to all the arguements for and against crypto ad infinitum. The bottom line for everyone is that people act according to their deep seated faith or bias. Where that faith or bias originates no one has ever been able to explain to me. My bias is toward gold. My “reason” is based on the fact that it has served as money for 6000 years, has intrinsic value of around $1000, and to an extend, it affords me absolute privacy and freedom.

Sue February 17, 2018

Isn’t a cryptocurrency value based on the amount of individuals willing to use it as a ‘medium of exchange’ similar to our dollar? The larger volume of those willing to use it as a currency, give it its value. If we stop using the dollar as a ‘medium of exchange’, it becomes valueless. Since cryptos are tax free and hidden from nosy governments, it seems to me that most governments want individuals out of cryptocurrencies and back into ‘controlled’ envirionments. Bully for cryptos, I say.
signed: Tired of being spied on.

Jay Curtis February 17, 2018

Martin,

You understand very well what’s happening in the “Crypto world.” But you neglect the greatest element of risk of all to these platforms and “currencies.” You maintain that they are actually creating “Nations” and economies of sorts. I agree. And here is where the problem exists. Governments who issue national currencies don’t like and are threatened by these crypto currencies. Its through the national currencies and the central banks that control them that nations with real physical power control the world economy These crypto nations have no physical power in the real word. They have no armies, no police, no courts of law, no legislatures and no recourse when a physical nation declares war on the crypto nation. When the crypto world gets offensive and threatening enough to challenge the existing world economic order that’s when existing governments will take action against them. What happens when a government with armies and police enacts laws devastating the crypto nation? It loses the war, and like Germany in two world wars, ITS CURRENCY BECOMES WORTHLESS. How much longer do you think the top tier economic nations will allow their controls, direct and indirect, over the world’s wealth to be eroded by crypto nations? We all agree that the silver (and to a similar extent, the gold) futures market is manipulated by big banks, there not being enough physical silver to satisfy delivery of even 10% of the silver traded. What happens if government steps in? We know it would be a total disaster for the shorts and silver “borrowers.” Putting aside the volatility and gyrations of Bitcoin’s value swings, the lack of control of these computer created currencies is something the governments of the world cannot live with for very long. They will eventually legislate their death (or at the minimum legislate government control over them). People may agree to take Puka shells as money until the king orders his soldiers to confiscate them all and make necklaces out of them. After then he will decree that only coins with the king’s face on them can be used in trade. When that happens what do the people do then?

Jay Curtis (author of THE CODE)

Bob Schubring February 17, 2018

As to the January 24th cyberattacks, the most-likely motive for a disruptive cyber-attack was to slow the distribution of the Weiss Rating to subscribers, thereby giving early movers an advantage in the trades. If Currency X turned out to have a lower rating than Currency Z, the first person to discover that by reading the ratings, would have a first-mover’s advantage in the markets, as he or she could take a short position in Currency X and a long position in Currency Z, then profit as Weiss subscribers read the ratings and acted on them. To make the move profitable, that first-mover would need to intercept and read the very first published copy of the Weiss Ratings before it arrived in the in-box of the subscriber to whom it was sent, and then delay any Weiss Ratings subscribers the opportunity to read the published ratings, for long enough to complete this illegal insider transaction. Much money has been invested by major investment banks and brokerage houses, on faster computers and faster high-speed data links between global markets, in quest of such first-mover advantage by shaving milliseconds off the time it takes to place pairs trades on exchanges. Since some of the cryptocurrencies are downright slow to clear transactions…Bitcoins can take several minutes…this intrusive cyberattack was likely the only means by which the attacker was able to force a first-mover advantage to himself or herself.

The good news, if there is any, is that the attackers did not hack into Weiss Research’s internal computer network and simply steal a draft copy of the Weiss Ratings before they were issued. Had the attackers been able to penetrate the company’s internal network and read the draft copy before it was released, they would have acquired first-mover advantage, not only in the cryptocurrencies market, but in the stocks and commodities markets as well, until the leak got plugged. This seems to indicate you folks are doing something right.

UARYSOUSA February 17, 2018

I do not believe in sintrensinco values, I believe that it has no monetary value like the currencies of the countries. We are facing a moment of joy and contentment with the cryptomoedas, with them we are free of the failing economies of the countries, we are free of the central banks of everybody, we want freedom not only to love and to live and to be free to go and come to any nation , we want freedom to make money and use what we want and more hidden governments better not give us money we have to work to win them, then because he has to know how much we earn how much we spend. I think the great legacy of cryptomoedas and this the secret, and not pay taxes for governments to use in their personal stewardship. we are happy with Nakamoto satoshi, and with this system of moving our economies in our private, without revealing our financial lives. Wallet open only to our wife. I found this interesting idea in your blog. Hugs Uary (Brazil)

flb2 February 17, 2018

I am invested in cryptos, only money I am willing to lose. I do not have any money in the stock market casino. This article does a good job of describing the value of the crypto market. In other countries it is very easy to buy coffee and almost anything you want with a crypto wallet. The US is very behind, although there are many more BTH ATM machines around now to buy Bitcoins or convert them to cash. Look up for maps for these machines this is not a fade, they are here to stay and growing. Widely used in third world countries that don’t trust their currency, don’t have a bank account, or don’t like to pay exorbitant wire fees. Sometime China will legalize cryptos and the market will explode. I think if you watch enough videos take notes you will figure out how to work through the many hurdles that exist to get into this market. Once you have an account with Coinbase and accounts with some trading markets you are in the game.

Robert February 17, 2018

1. Invest in items with limited supply and unlimited demand. Some cryptos fit this rule – buy them.

2. People who will have no job when the Blockchain and Cryptocurrencies take over say what ever they can to scare people away from the new Blockchain Revolution. Namely banksters, credit card companies, financial exchanges, recorders, some lawyers, and the list goes on.

Bob

Bob K February 17, 2018

Your reasoning is interesting and seems sound to me but being a guinea pig for this experiment is still scary for someone in retirement looking for safe conservative investment to maintain capital.

Investing in bitcoins a few years ago would have made sense since the purchase price was very low so would have taken a little risk. Investing now at these very high prices is truly risky.

Robert reply_all Bob K February 18, 2018

Your example – Biitcoin You can buy 0.00198010 Biicoin today. At $10100 per coin 0.001980010 Botcoin is $20.00.

Bob

pat reply_all Bob K February 19, 2018

The problem is that in the early days it was so new and uncertain that there was not much confidence in it , even some of the early birds waisted bitcoins on buying pizza’s, at the current value they payed millions for a pizza not expecting that BTC could get to the current value, now BTC is much higher but it could still reach a $1 million a coin ,it’s only about mathematics ,if only 1% of all gold investments go to BTC that 1 million level will be reached, I dont claim it will happen but it might . There are maybe 50 million people into BTC now, there were 22million last november but with the huge lift up I assume 50million is a quiet possible number , which is still a drop in the see ,world population is +7 billion if 2 billion get in, this is the number into facebook adopters,the sky is the limit for BTC for a few years to rise before the big collapse comes in about 10 years and this will be caused by certain flaws in the set up of its own creation,because it’s a genious programed pyramid that will end itself paving the road for better programed crypto’s with a real purpose to serve diverse niches in the economy. The huge strength in BTC last year was because it serves as a platform for the many new crypto’s created of which most can only be bought via BTC or Ether and this force will keep driving it up for quiet a few years ,off course with ups and downs

Bob Goates February 17, 2018

I suspect many people who claim cryptocurrencies have no real value because they are “made out of thin air” have not come to grips with the fact that national currencies are also “made out of thin air”. True understanding of what comprises modern money seems to be somewhat rare.

Carl Eckberg February 17, 2018

So if a country can issue a new peso, a community can issue a new
crypto, and give you 30 days to convert crypto C4 to C4b. What if
you miss the memo? The intrinsic value of C4 would ebb quickly.
It can pay to be part of the community using a currency.
Or two crypto nations could combine their currencies, with unknown
consequences. Ah yes, cryptoEuro.

RACHAEL February 17, 2018

McKinsey’s recent study quantified several use cases that confirmed the value of the industry

Paula February 17, 2018

Although I have no investments in them yet ,I believe cryptocurrencies are the wav of the future. Although I do not fully understand how they work many people use them for business and personal transactions. The fact that Korea tried to disrupt your ratings should be a flag telling us something is up.

Sabine February 17, 2018

I’m a firm believer in cryptocurriencies. Risky? Yes. As with the dot-com bubble, there will be winners and losers. It’s not just crypto, it’s blockchain. The distributed ledger technology is a game changer. Blockchain is going to affect everything on scale with how the internet has changed our society. Cannot tell you how excited I am to be in this space right now. Love your enthusiasm!

Chris H February 17, 2018

Are these crypto currencies likely to replace “real” money in the near future? If so, what on earth should I invest my savings in, to make sure I don’t lose them? Real estate? Gold? What?

Harvey L Hall February 17, 2018

Cripto currency will be subject to significant worldwide counterfeiting far surpassing that of paper currency.It would be a treasure trove for criminal activity. Were it not for that problem, It has strong redeeming qualities such as independence from government interference and attempted regulation. I will not get into it. Instead I will rely on precious metals and land for investment.

George Finn February 17, 2018

If someone wanted to sell their home would bit coin give the owner so many shares of bit coin.

Jim February 17, 2018

I’m a 64 yr old engineer with an MBA who is invested in crypto – 19 different positions at present. My total fiat currency investment at this point is $15.5K, only a very small percentage of my overall portfolio, which contains stocks, bonds, physical gold and silver and real estate. I see crypto as a potential means of turning small bets (no illusions here, it’s speculating in the wild, wild west) into much larger sums. My initial investment of $10,500 from late July through mid-September of 2017 jumped to $75K before the drop. After pulling out $4500 at the peak, and averaging in another $9K as my portfolio dropped, I am now back up to about $52K as this is written after my portfolio dropped to $29K. The process of investing in crypto is a difficult but not impossible task. Those who are scared off by the difficulty should go online, watch YouTube and read the forums and chat rooms for tips on selecting the better currency converters (I prefer Abra) and exchanges (Bittrex, Binance and Cryptopia, and there are others…). The next step is to set up online and hardware wallets. I subscribe to 2 newsletters that I have found to be well researched, but be prepared to pay some serious money, $1500 per year for one and $3000 for 3 years for the other in my case. I originally was exposed to crypto in April 2016 through an investment newsletter I had subscribed to for several years previously. What really sparked my interest was finding that 2 of the younger engineers in my office were investing in crypto, one starting 2014 with $200 of Bitcoin that financed the down payment on his house. I then jumped in with both feet, and have been asking everyone since if they were in crypto. I am finding the general investing population is completely ignorant, if not stupid about crypto. I’m in for the long haul and will begin taking more of my seed capital out when I perceive we at near another peak.

Helen S. February 17, 2018

Ya… Who runs the programs that keep track of all this or transmit these “values?”
Where are the master computers located? Or where are the master programs that
allow the system to “run” located? And most important, who and where are the
people that wrote and continue to write the programs?
How do you carry around your emergency cash needs? Only in your cellphone?
So when you are out of range, or there’s a serious regional power outage, you have nothing?
Or your batteries need a recharge, or won’t hold one any more? Or you left it on the
restaurant table in your hurry when you left?
What are the “units” in this thing; how do you estimate your costs for something if it is
just some huge, wide open auction house?
Maybe this stuff is OK for big-time investors, or speculators, but it is NO substitute for routine small
purchases. Nothing can beat an easily foldable Hamilton or Jackson or Grant, or even Old Ben in your pocket.
Even a few Washingtons or a Lincoln can buy you a bit to eat or enough gas to make the next town.
(That is even true for folks who depend too much on their plastic cards).
I’ve seen them sputter in a small store when their card is useless because it costs too much for the
store to join the card companies, pay their fees, buy all the gadgets needed to handle them, and then
have to ‘update’ all the time, for the endless requirements to stay abreast or keep from being hacked.
For that matter, how does it play in a supermarket where prices must be displayed by each item, by law?

Helen S

BERNIE February 17, 2018

I thought you would suggest what to buy; so far this is worthless

Gil Gray CFP Emeritus (retired) February 17, 2018

cryptos seem to be a great thing to buy but what do I do to buy a new computer or a used car from my neighbor who doesn’t know a”crypto” from a sour apple. Or even just to buy a stock though a stock broker. ? ? ? ?

Bll reply_all Gil Gray CFP Emeritus (retired) February 19, 2018

Consider (after research) a small “speculation” in GBTC in a retirement account. Yes there I see a large premium and it is an ETN. But, eliminates tax issue and trade just like a stock, I personally perceive value in simplicity and that helps me stomach the premium.

Should it double (my lips to God’s ears) maybe sell 1/2 (as some of the posters here have) play fro there with house money or just hodl.

David R Blanski February 17, 2018

I have read in several sources that computers now in development will be able to unravel the security used in cryptocurrency in seconds. Seems like a risky investment to me.

Ernie Gulyas February 17, 2018

My name is chow mein – CHICKEN chow mein! I’ve worked extremely hard over 84 years to get what little I have and yes I have a real hatred of commercial banks, the robbers! But at the same time until I can grasp what the hell virtual money is about, I’ll keep my bullion in a safe place – and that’s not in a central pool where the governments can grab it in the name of “public interest”, they have and it is still going on!

Sandra Kallander February 17, 2018

You lost me at, “Heck, if that were the case, a hundred-dollar bill would be worth less than a cent and a $10-million bank account would be worth only the half-second it takes to delete it.”

The hundred dollar bill IS worth less than a cent, and a $10 million bank account is worth even less as it will cost energy and equipment to access and store. Neither of them has any intrinsic value of their own–every bit of value they have comes from other things you can get with them, and for most people that other thing, right now, is a fiat currency the government created.

If you were in a spaceship and have no one to exchange with, and had gold and silver, you could still make an electronic repair or use silver as an antibiotic. I suppose the $100 bill could be used as insulation, though a copper penny might have more uses that are intrinsic.

Take off your blinders. Cryptos have some utility as a means of exchange or a fiat currency, but nothing intrinsic, lasting, or that can’t be endlessly duplicated by others. The only difference between my dollar-based debit card and a crypto is who brought it into being and has control of the system. Neither of them is honest money.

B Aburn February 17, 2018

The concept is good except for two important things.
1. There is nothing underneath to support it. Just like all paper currencies there is no real limit to the amount that can and will be created in the future. Bitcoin proved that by division and central banks proved it by QE. How can there ever be real value in holding something that can be multiplied at the touch of a keyboard. There is a place for digital coins as a trading platform but they complete with a banking system that is far more entrenched and just as fragile, perhaps even criminal.
2. Anything can be stolen including gold, paper money and digital coins, even life itself. Its just harder to do in the physical world than the digital world. So until there is either 100% security and assurance of quick and easy return to the rightful owner, nobody is truly safe in the digital age.

Robert reply_all B Aburn February 18, 2018

When you place your public and private keys (to funds in a Cryptocurrency), on a flash drive or a piece of paper, as long as the flash drive or paper are the only copies, your funds are as safe as they are. Should some one get your private key, he has your funds.

Bob

Gere February 17, 2018

It seems to me that the only thing that makes money worthwhile, is confidence in the money that someone else will accept your money for services they provide to you. Tulip bulbs held that confidence for awhile, and cigarettes did the same during WWI I believe. I feel that the blockchain technology will be useful for many things in the future, and hashgraph technology may be even more beneficial, due to the lesser electrical costs the huge computers and needed air conditioning requires. Money that is not backed by anything is not likely to succeed for a long time. That is why the dollar is diminishing today.

Peter Jaffe-Notier February 17, 2018

Cryptos are like the early days of computer operating systems, not like the tulip mania. A lot of OS’s were out there in the early 80’s and could be bought cheap. Most of them failed, but Microsoft survived and prospered. It’s easy to wish I had bought Microsoft at $1 a share, or bitcoin at $1, but I didn’t. I did buy Cisco at $6, though, and did quite well with it as it went up. Same with cryptos. Some people got lucky and bought it early. Good for them. But there are also alternatives. Maybe they won’t make you a billionaire, but with a good crap detector and patience could do quite well.

Rod Gaede February 17, 2018

Your deductive reasoning is so full of holes that it makes me question the value of any of your products. With Larry gone there is little reason to be connected to the Weiss team.
Rod

john February 17, 2018

What in hell are cryptocurrencies?

Wayne Wilson February 17, 2018

Read Watchman’s Rattle. Technology moves faster than the human brain. The SMOKE you described above is another token (of many) why the American Empire and many others are collapsing morally, financially, and economically.

John Beardford Tipton February 17, 2018

Most brokerage houses and clearing firms will not allow their clients to trade in in crypto-currencies. They won’t accept buy orders. What do you say about that, Martin? Call Morgan Stanley, Merrill Lynch, UBS, or a regional like Waddel and Reed, or Raymond James, or Wunderlich. Ask them to buy you shares in Bitcoin, or the Bitcoin Trust (GBTC). See what they will tell you. Your “reputable” brokerage houses will not let you even participate.

Ray Asper February 17, 2018

One of the most level-headed descriptions/explanations of cryptocurrency to date! For a good percentage of the world’s population, “cryptocurrency” or “bitcoin” or “ethereum” etc., sounds like some esoteric or forbidden world of finance that they have no business entering. But, with Martin’s help, I believe many more people will soon realize that this is for real, and that they definitely should educate themselves into this amazing new investing sector.

Richard February 17, 2018

As an American living overseas, I have not found a single exchange I could join to transfer funds into to get started with cryptocurrencies. Coinbase requires SMS messages (I have no US phone chip), Korea has banned foreigners from trading, China is out, Thailand has banned Americans and numerous others in Europe. I was approached by one company that appeared to be a scam because of their hard-sell approach, so I didn’t send them money. Any suggestions?

Robert reply_all Richard February 18, 2018

Check with Andreas Antonopoulos. Find him on the internet.

Bob

Earcel D Greenwell February 17, 2018

Is crypto the coinage the Romans used when their empire crumbled?

Robert reply_all Earcel D Greenwell February 18, 2018

No. Their dollar was.

Bob

Dave Hughes February 18, 2018

When you can pay your taxes in crytocurrency that will be the turning point . Until then they are just scams . Theoretically I could start a crytocurrency with the push of a computer key or 2 . Why would governments allow an unregulated money system to exist especially one that they cannot tax . This is worse than tulip mania

Robert reply_all Dave Hughes February 18, 2018

The State of Arizona has a bill before the legislature to have the state collect taxes in 2020 using cryptocurrencies that the department of revenue decides to accept. Real progress!

Bob

Charles Knippenberg February 18, 2018

Probably both. They’re probably a scam of sorts similar to the various stock and commodity exchanges and national currencies. Think of the Euro which is supposedly backed by the assets of the member states. What assets? Well, believe it or not, many of Europe’s “assets” backing the Euro are US dollars. What backs the US dollar? Full faith and credit. Or put another way, belief that the currency has value. And what is being exchanged for stocks and bonds?

As long as a demand exists for any item or idea, that item or idea has value. To somebody, somewhere. Nothing new there. Think of tulip bulb mania in the Netherlands, or the South Sea bubble as excessive demand for fairly ordinary items. Now, think of the recent run up of a few of the crypto-currencies, which are numbers rather than items that could be planted or sold as food.

I have some certificates for seashells for sale to the highest bidder. Gold only. Coins or bullion.

Ivan Molev February 18, 2018

Good day, i am a member of the strong wide stratis community. Could you give more details on the STRAT C- rating. Being an investor in this particular blockchain platform i can’t understand how the project got such a low grade. Would be great if you share details with us. Thank you.

Alexandre February 18, 2018

when governments realize that using cripto mean to avoid paying VIT (or any other trade tax), they announce criptos to be illegal, and will destroy all cripo platforms.

Roy Wuchitech February 18, 2018

This may seem lame and simpleminded, but how do you buy crypto currencies such as Ethereum and how do you store them for use?

Michael Connely February 18, 2018

I wanted to buy bitcoin years ago, but my computer skills are low and I could not find any detailed low level instruction on how to go about it.

The value of something is based on its acceptance and simple supply and demand. Having a type of currency that is not controlled by one country is appealing to many people. Crypto currencies will from this point on will probably continually grow. There are of course many cryptos that will fail, but the ones with the best technology (simplicity as well) will dominate. There are bound to be some smaller poorer countries that use it exclusively in the future.

Eva Levine February 18, 2018

At this point, which currency or transaction medium that I would trust is whether the medium is accepted by billions of people or only a few millions or thousands. The decentralization of cryptocurrency is precisely the danger of it being limited in its utility, reliability and stability. If the value of cryptocurrency is defined by the underlying transaction that employs it, then there is essentially no fundamental value to the cryptocurrency as all transactions are subject to negotiation between the parties involved. It means that the value of cryptocurrency is vulnerable to manipulation by only a few people. True, all currencies are subject to some manipulation by governmental actions or otherwise. But cryptocurrency will make any manipulation much easier and faster.

BERNIE February 18, 2018

WHY DON’T YOU ADVISE US AS TO HOW TO BUY CRIPTO CURRENCIES BECAUSE ALL MAJOR BROKERAGE HOUSES REFUSE TO TOUCH IT. IF I HAVE SAID THAT BEFORE WHY DO YOU REFUSE TO ANSWER IT

bobby hartway February 18, 2018

there is no question whatsoever that cryptocurrency is the currency of the future – the only real question is WHICH ONES will be the ones that actually INDURE into the future ?
If I knew this, I would retire with it.

Gary Cronin reply_all bobby hartway February 19, 2018

I once made the mistake of buying 20,000$ worth of gold at Monex. Well they were very clever and corrupt and every time I called to speak with my investor broker I was told he’s going through a divorce, I am your new agent broker and by the way I see you are in Gold…I would suggest you go into silver instead. This happened a few times. I went from Gold to Silver to platinium and back. They ripped me off for about 8,000$ plus brokerage fees. I learned a lesson though. Now I listened to Cliff high and Bix Wier who said buy silver and then smoothly switched to Cryptos. Well I don’t trust any of them anymore. I have invested a lot in Gold and Silver. If I am wrong I’m wrong. I figure that at best one day I will be able to swap Gold/Silver for Cryptos. I am done with trying to catch the golden ring on the merry go round. I am happy with what I have even if it’s wrong. I don’t need to be rich!

jan reply_all Gary Cronin February 21, 2018

That burns me Gary and it’s not even my money; oh man that’s a killer; when I had stocks at Shearson Lehman that was always the first question out of my mouth: is there a commission and what is it? My boss came crying to me that a broker w/SL, a different agent called and wanted to “move one of her holdings to whatever” and when her statement came, he had charged her a $3k commission. She was devastated. Don’t know how the stock played out for her. Every time I look at Kusich or hear his name I just shake my head; he sat at the head of SL the day it went under September ’09 and that was rarely even mentioned during the presidential campaign; never could understand why he was even a contender.

Managing your own portifolio is rewarding but takes an eagle eye and a steady hand.

Daniel Spooner February 18, 2018

For the US economy, the Fed has significant impact on interest rates. I haven’t seen any discussion on interest rates and cryptos. What’s your view on how this would work?

Nicholas February 18, 2018

There is a problem with crypto as opposed to real assets, like real estate or gold. If and when the next Carrington Event takes place the world’s electricity grid will be out for a couple of years at the very lease and nobody will be able to prove that they own any cryptocurrency at all. The same is true if there is an EMP attack from North Korea. So when liquidity depends on the continued widespread availability of electricity, you have a train wreck waiting to happen.

Donald February 18, 2018

I’m an “old Fart” (late 70s) & have no idea how I PERSONALLY would ever get into such a “blockchain, or why I would want / need to. My liferequires jus the small amounts of retail products to keep me alive, fed, dressed and at a comfortable temperature. I don’t have the $ to invest or speculate in Cryptos, either.

Robert February 18, 2018

Are you willing to invest in something that some one can produce endless copies of? Evample $

Bob

DesB February 18, 2018

Crypto a scam, well maybe, maybe not, when the stock market goes through its bust and boom and millions lose their life saving and companies big and small disappear, what do you call that? The dollar is no longer backed by anything (gold) and bills are printed out of thin air, what do you call that? Crypto and the blockchain is here to stay in one form or another…

Capt Curt February 19, 2018

Mr Mike, my answer to the question of how do I manage risk is very simple, because I am a simple guy… constant position size. I can not nor will I claim I came up with this concept. But it works for me and keeps me relaxed internally and mentally with the moves that this “Space” has naturally. I use the same range amount every time in each purchase for each crytpo . Since I am a small investor not having alot of funds I use between $200-$300 range. No one wants to take a 100% loss on ANYTHING, but if that happens I can mentally handle these amounts and not lose any sleep, and I know live goes on and the sun comes up and I will not be on the street…ha
Make it a Great Day
Curt

William February 19, 2018

Speculating with cryptos is nothing more than gambling and as such any person of sound mind and being
will never risk more than she/he can afford to lose, whether that be $5, $50 or $500 or more. And as with stocks,
options or another so-called investment the wise woman or man will take profits when your up, ie. get your initial
investment back wo include some winnings when possible and play with the house money. That has been my
strategy for the last 10 months. Cryptos and blockschain technology is just starting to move and those cryptos
that have good valid use cases and partners will be the winners in the long run over the next 2-3 years and beyond.
The internet had been around for over 50 years although only about 25 – 30 years in the current form. And look at
where we are today. Blockchain and successive technologies will revolutionize finance, commerce etc. just as the
internet brought us where we are today. The world will continue to change and although not everything will be the best for human development, let’s try to progress as humanly as possible.

KC February 19, 2018

Crypto risk can be approached two ways: trade the swings (preferable) or buy and hold. Trading the volatile swings is much more profitable and would be much more so if short positions could be employed. At any rate, swing trading is vastly more profitable IF it is possible to watch frequently. BUT the exchanges need to grow into real bona fide trading venues. Much additive risk due to these poor market access venues.

Peter Last February 19, 2018

In answer to your recent email question. In my case I decided how much I could afford to lose without crying too much if it all went pearshaped. Unfortunately at first I found it very difficult to purchase bitcoin as I had no passport or drivers licence and so ended up paying over the odds very close to the top of the market. I have diversified a bit since then but all within that same initial investment. As I write I am about 10% down which is a big improvement actually.
My intention is to hodle in the hope of rewards down the line. If and when I am up 300% I intend to cash iin my initial stake and hodle the rest for the forseeable future.

Michael Moy February 19, 2018

Block chain is sound, wish you guys would research and make some recommendations there. Potential homers with reasonable risk. As for cryptocurrencies, speculative play worth a measured exposure even knowing most are scams. The problem is buying and selling, a real pain. Wish you guys would research and make some recommendations there on the least complicated/most dependable way. I could speculate on interesting penny stocks in precision medicine at a regular brokerage. Another subject I would like to hear about is the Lightening Network, if implemented a real game changer and they’re getting close.

Robert M Friedman February 19, 2018

For a currency to have lasting value it needs to have reasonable stability of value. Perhaps we will get there at some point, but at least for now these currencies are highly speculative and have too much appeal to criminals and extortionists. At this point I believe the world would be best off if they were banned completely – as many Asian countries have done. I still think we are in the last upswing of a bear market crash that will bring the value of bitcoin below $500 and perhaps to zero, and take most of the newer crypto currencies along for the fall.

Tracy February 19, 2018

The crypto revolution has been called, and I believe rightly so, the opportunity of a millennium. Anyone who has the inclination to get involved should simply buy some Litecoin with money they don’t need for necessities. Then wait a few weeks or months to make a decision as to whether to get involved more deeply. Spend some time learning about the opportunities available in cryptocurrency. Know that the markets are more volatile than stocks. Then make a decision.

Don’t be a hater just because someone on television said this is a scam or a bubble. Learn for yourself. Make your own decision.

The early adopters are getting in now. When mass adoption takes place, I believe we will witness something the likes of which we have never before seen.

Jim Honiss February 19, 2018

There are new currencies popping up daily. To invest is a great risk. The ETF ARKW seems to blend crypto with other stocks, creating both an up side and a down side.
Top 5 equities held by fund as listed by Scottrade.

Percent of all holdings: 25.80%
Company % of Hldgs
GBTC Bitcoin Invt Tr 7.06%
AMZN Amazon.com Inc 6.06%
TWTR Twitter Inc 4.46%
ATHN athenahealth Inc 4.45%
TWOU 2U Inc 3.77%

Al February 19, 2018

For any currency to be legitimate, it must be widely accepted as a medium of exchange for a broad range of goods and services. Otherwise it is merely a faux currency that is nothing more than any other item, such as collector coins and investor art, that are bought and sold with other currencies (dollars) based only on the supply and demand for the items, as expressed in terms of the medium of exchange (dollars). Most crypto investors are only interested in how many units of another currency (dollars) their crypto will convert to. Crypto investing has a lot of the marks of a Ponzi investment, where the last man in usually gets screwed. I am not saying that you can’t make a lot of money in cryptos, any more than I would have said you could not make a lot of money in the high-flyer internet stocks that went belly up over night in the early 2000s never to be seen again. There will always be a lot of money to be made based on the “bigger fool theory” for the investor who can guess how many “bigger fools” are still willing to play the game! Bitcoin may have the potential to become a legitimate currency in that an increasing number of goods and services can now be purchased and sold in Bitcoins, but it is still far from being legitimate as a currency at this point, and the latecomer cryptos probably have no chance of legitimacy as a real currency.

TEd Moss February 19, 2018

bottom line—I would not buy crypto at this time

Michael February 19, 2018

I’m a small-time, retired investor who is interested in digital money, but will wait for more info like you’re now providing and the security risks from hackers, etc. Keep up the good work!

Richard Platt February 19, 2018

Looks like a Ponzi scheme to me. Wouldn’t touch it with a ten foot pole!

Dan Herriott February 19, 2018

Cryptos are not for the faint of heart. But then, without the proper mind set and risk management… neither are stocks, options, FOREX or any other market! The only way I would (and have) recommended newbies buy cryptos is to stick with a handful of the largest cap coins, spread their available funds evenly and HODL. Those that may have had some success following stock charts will discover in a hurry that crypto charts and stock charts may look alike, but they are not. With the big boys now climbing aboard the once exceptionally predictable crypto patterns will unfortunately become more and more polluted. I’m convinced cryptos are here to stay and we’re still early in the game. A small cache of cryptos acquired now could easily become a retirement saver for boomers. In closing, it’s been said we’re back in the wild, wild west. That said, whether trading or HODLing, unless one secures his coins OFFLINE and protects his private keys with his life… his coins WILL BE STOLEN and there’s no good guys to ever get them back!

john willis February 19, 2018

How right you are. Blockchain threatens the international central bankster’s stranglehold on currency. They have started wars or had them started, maybe murdered presidents, to punish anyone who threatened to rain on their parade. The hidden tax that monetization really is, robs us of our savings by diluting our buying power. If ever innovation threatened bankster control, really centralized control of everything, it is the blockchain revolution. Even social media is threatened by a technology that will replace their mercenary grip on our personal information with a decentralized internet with decentralized social media sights. Long live the revolution.

Robert February 19, 2018

Strategy: Buy what has limited quantity and unlimited demand and hold. Lack of patience is your enemy. Only look at weekly charts over the long term.

Bob

mike podo February 19, 2018

When Cryptocurrency has intrinsic value like steel, gold, wheat, a garageful of toilet paper, silver, copper, lead, or something that I can hold, touch, feel and or smell, I don’t want it. Maybe millenials can be taken in by this, but its not for me. Remember $10,000 tulip bulbs in the 1630’s

g tay February 19, 2018

Invest in AIR; Air has a more stable return.

Terry Nelson February 19, 2018

How is a crypto currency converted,if at all, to paper currency issued by a government?
How are you able to exchange crypto for hard goods and services?

pat reply_all Terry Nelson February 20, 2018

There are gold vehicules that only except bitcoin to buy it and with a physical delivery of bullion service afterwards if you want your gold to hold in your hands later,so for the time being it’s better to have bitcoins because they go up while gold is manipulated to be kept down, but one day before gold will errupt you can trade your bitcoins for gold and make an extra killing,soon wont need to go back into fiat anymore,but never put all your reserves into bitcoin or crypto’s because they are not going totaly replace fiat anytime soon.

CER February 19, 2018

I am amazed at the level of financial knowledge (very low) that has encouraged some retail speculators to put a very large part of their savings into high risk cryptocurrency speculations (not investments) .Perhaps their financial ignorance has innoculated them against fearful emotions and allowed them take such unwarranted risks of losing everything they have speculated. Some have made publicized fortunes, others have lost all or most of their capital. But it is the dream of becoming rich thal compells some speculators to take the very high risks associated with cryptocurrency to pursue it. They may enjoy the moment, but in the end regret their decision to do so . It would be much better for them to pursue the “pick and shovel” approach to cryptocurrencies, investing in blockchain technology companies which provide the platforms on which cryptos are implemented.

El Skeptico Grande February 19, 2018

How many of the hypesters on this blog are Russian or Chinese trolls who want to see the US economy tank? Yes, the Feds have been doing it to us since Jekyll Island. Yes, the banks are ripping us off. Yes, blockchain hackers and scammers are building coin pyramid schemes. Yes, let the buyer beware. AND yes I am interested in putting a little gambling money on the table soon as I figure out the best and safest table. BUT some folks here sound like they are just in it because they want an economic revolution. Suppose everyone jumped into these cryptos this year and jumped out of cash and cash accounts, assuming they could actually spend it for groceries, gas and rent. Have you thought about what that would do to the world order? Blockchain sounds like a great idea, but not this nutty coin free-for-all that we are all witnessing today. It needs to be coordinated between nations and their reserve banks or it could degenerate into an international clash such as no one has ever seen. You thought Brexit was a fiasco. Get real.

Larry Steele February 19, 2018

eth will run this country soon

Malcolm A douglas February 19, 2018

OK, maybe you are correct.Neverteless, how do you trade crypto’s, where do you buy them and which reputable place handles the transactions?

Malcolm A douglas February 19, 2018

Ok, maybe you are correctbut where do you buy and sellcpto’s.

Claire February 19, 2018

I have seen it in a new light after reading your explanation in this article. I have not studied or researched it to date, as I did have the idea that the idea was not “sound”. Your article is based on sound logic. I look forward to more of your opinions and that of others as well as researching it more thoroughly. Please explain further how and why you think it may be currency of the future. There is so much “virtual reality” currently that it becomes more difficult to recognize it from the true reality! I’m looking forward to learning more from your point of view. Can you give a few examples of your crypto ratings and the “how and why” of your position on their safety. I guess it’s a new paradigm that is difficult to understand, especially for those of us who depend on our investments to take us safely through our retirement years, which I’m already into. Look forward to learning more from you.

BERNIE February 19, 2018

WHERE AND HOW TO BUY IT……. IS IT SAFE FROM HACKING…..WHAT DO I RECEIV TO PROVE OWNERSHIP

Richard Mathieson February 19, 2018

My Bank or Brokerage start trading them.

Mark S February 19, 2018

Thinking gold rush mania…those panning for it either won or lost. Blind roll of the dice.
But the suppliers who provided food, clothing, tools, et al won, no matter who won or lost.
Might throw down $100 on crypto like I would the lottery when it hits $100 million,
but I know ‘digital tulips’ when I see it (compare, say, bitcoin chart with tulip mania 1600s, nuf sed)
These are casinos, with better odds than old casinos, mind you. But they’re still casinos.
It’s great if you catch it at the startup, but get out before it becomes ‘digital tulips’, as now people
see it as said casino, which is most speculators’ mindsets anyway (their vernacular is a dead giveaway).

Instead, I prefer investing in something more sane, like the technology that makes this new idea possible:
Blockchain
That’s where the serious money will be made…in the suppliers.
Best of luck to all, regardless of which route you take.

dennis February 19, 2018

To all the nocoiners. Educate your self on blockchain tech before u trash a new technology. blockchain is soo simple to understand, it is a distributed trusted ledger meaning everybody has access to. does your bank show u there centralized ledger I don’t think so. You might not like what u see. This is the digital world now & anybody w/ any smarts about them embraces this tech. As for the coins those are like shares of stock but way better because u can move this currency fast & cheap & completely trusted transactions w/ out third party taking to much of the amount to move it. Every transaction is recorded for all to see no matter how small or large it is. It only gets better from here, I am in & love it. Crypto for life baby…I ll see u in the forums once u realize how good this blockchain is & the ease of use w/ digital money$$$$$$$$. So please educate your self on this amazing new tech in its infancy.

Andy Lamon February 19, 2018

My reply is i am interested in learning all i can about this new emerging economy. It sounds really good so far.There are so many things i don’t know about it.Wondering how free is one really.As for me…I’m waiting to see if governments will really allow it. Andy

Evenkeeled February 19, 2018

Commodities have intrinsic value… like cigarettes. They have an inherent purpose. They can be used for things. They can also be used as a type of currency in prison. So, they acted as a commodity and can also be used as currency depending on the situation. I feel more comfortable investing in coins that act more like a commodity like District0x, Ethlend, etc. I also like investing in coins that will monetize technologies that are currently out of reach for most of the world’s population whether it be because the people can’t afford it or access it. The cost, accessibility, and usage of crypto is what I find amazing.

Van February 19, 2018

Top Buys:

NEO
ICX
ETH
EOS
ADA

Deanne February 19, 2018

When humans use anything, it has value, especially
in trading or bartering.

Don February 19, 2018

Dr. M. Weiss,

Could you do a refresher on why the original 13 colonies or states had their power to print money taken away by, guess who ???? The Federal government. The above information sounds like history repeating it self except on a world scale. History and past laws will be on the Governments side. If they can do it once, they will do it again. The tech talk is all a smoke screen to what is actually going on. Good bye Sovereign Nations…This is not good by any means.

Thanks. Happy investing.

Stephen Yu February 19, 2018

Where to buy this cryptocurrency in the stock market or from private source? How to use or trade this cryptocurrency?

Sarah Shupe February 19, 2018

So…Martin and Juan…are you working up to offering us plan by which you steer us through the amazing new world of cryptos? I’d like to hear what you have in mind, if you do. Since Amazon is about to accept bitcoin as payment on or around April 27, what shall we do? Should I buy a new computer with up to date protection software to invest on? Should I have a backup drive? I sure could use some income…do I use my little IRA money or spare cash to invest? I’m retired…with a handicapped adult child. Do I have to pay income tax on everything I make?

You guys are so wise. Steer this grandmother through the path of cryptos to financial success!!
Yours truly,
Sally

keith February 19, 2018

my strategy to minimize my risk: HODL BTC for the long term, My only reason to pull out is to spend earnings. This strategy has served me well for 6 years. I expect it will continue to for another 2-3 years at least (=:

Frank H Byers February 19, 2018

I travel in 3rd world countries. In these countries infrastructure can be developed, rudimentary and non-existent within different regions of the same country. Infrastructure development also varies from third world country to third world country. As you drive down the road in a third world country, typically there are no telephone poles and no telephone lines to observe . But the one thing you see in every part of any third world country is the cellphone. No matter how undeveloped the region is they have cellphones. Third world countries have skipped the stringing wires on telephone poles phase of telephone development that the US endured along with the incredible amount of money it cost to build them.

Another thing you observe in third world countries is that most of the people do not have bank accounts. Most of the local people deal in local currency storing it in their house, carrying it in their pocket and paying it from their pocket. The development of the banking industry is mostly localized to the larger cities in the third world countries. The existing bank accounts are held by the wealthier people and not the everyday worker. In these countries, the banking system is not only underdeveloped, it is rudimentary in many aspects when compared to the US banking industry.

In the third world countries, there is a great need for a stable currency which can be stored safely and transferred efficiently for people to use to buy their food and pay their bills. The need is very evident in third world countries with rampant inflation. It is less evident in third world countries where inflation is more modest. But the need is just as great. The ability to transfer value is just as important to a citizen of a third world country as it is to a citizen of the US.

If you look world wide there are billions of people who have no banking experience. But they have cell phones and cellphone experience upon which they can create and manage a cryptocurrency account. In a comparable manner to the development of telephones, it is my opinion that third world countries will skip the building of the mammoth banking institutions. In my opinion the citizens of third world countries will skip banking institutions and eventually go directly to cryptocurrencies. Just like their underdeveloped infrastructure and banking industry, many of the third world countries do not have a government sophisticated sufficiently to manage or regulate cryptocurrencies. Their citizens will be using cryptocurrencies as a way of life and it will become a part of the “norm” before their governments can react even if they wanted to react.

As the billions of un-banked third world citizens adopt cryptocurrencies as their method of exchange the influx of buyers of cryptocurrencies will, slowly at first, then eventually flood the market causing the price to inflate. Cryptocurrencies are in their infancy stage. Some or maybe just one will win as “The Cryptocurrency” for the world. It would be nice to know which one(s) will eventually prevail.

I see cryptocurrencies in the stage which early computers were in the 1970s. In the 1970s IBM was the “King”. I see “Bitcoin” as the IBM of yesterday. Computers today have advanced to a level not imaginable in the 1970s. I predict that cryptocurrencies will develop far beyond what is imaginable today also. IBM is no longer a major player in the personal computer market. Whether “Bitcoin” will remain a major player in the cryptomarket will be determined over time by the market.

My theory is to hold a basket of many different cryptocurrencies whose technology is advancing the space and hope that one or more of these currencies will become “The Cryptocurrency” for the world. My basket of currencies will change over time as advancements and time eliminate the weaker ones. It is just my theory but before you invest I believe you need a theory of why you are investing.

Sandy Hines February 19, 2018

When I first looked into it I was willing to invest, maybe 1,000 or so, but when I saw a video of someone explaining how to go about it, I was overwhelmed with the difficulty of the process of buying it, using it and keeping it safe so no one could steal it. Also I couldn’t understand mining or block chain. I wish I had had someone to go slow and explain things to me until I had the confidence to do it. When I was younger I did cost estimating for a roofing company, so I know I’m not stupid. My IQ is way above average, so there must be a lot of people with the same problem besides me. I could have been a millionaire by now,if I had known how to do it back then.

Barry February 19, 2018

If crypto is tied to blockchain technology, please explain blockchain so even I can understand it. THANKS!

norm February 19, 2018

In a nutshell, cryptocurrency is the wave of the future-wait, watch and learn!

Roger W. Johnston February 19, 2018

I am relatively a novice in cryptocurrency. Any currency whether it be US dollars, British pounds or Japanese Yen has no intrinsic value. Its value is how readily it is accepted for exchange of goods and services. The wider the range of acceptance the more value it has. Before money was the barter system. You give fish and I will give you corn. Salt was once used as money before refrigeration to preserve meat. Sliver and gold was used that was found to be impractical. The US dollar was once backed by gold. This was a ploy to make people feel better about paper money. Even when the dollar was backed by gold there was not enough gold to back each and ever dollar printed. I like the way you describe the skeptics of cryptocurrency as the monopoly camp. Its some humor mixed with reality. Maybe the monopoly camp can understand it this Monopoly Money has value but its value was limited to playing the game. We can conclude that no currency has value without acceptance. The skeptics can be referred to as Monopolites and believers as cryptonites.

SEC Take ACTION Now! February 19, 2018

There are more than a THOUSAND cryptocurrencies in a world of only 195 nations. Even the Nigerians are getting in on the scam of the decade.

The SEC needs to shut down ALL trading of cryptocurrencies by Americans while the currency experts figure out what’s REAL and backed by assets versus those that are a SCAM.

Until that determination is made, millions of Americans will be scammed out of their life savings and the rest of us will pay the price as they lose everything they own and sign up for welfare, food stamps and subsidized housing.

Ruining people’s lives with these cryptocurrency scams is NOT a joke. It’s real and real people are going to lose everything and then begin taking their own lives and perhaps even the lives of their own children as they realize they have lost all their money to the SCAMMERS!

Ed Glazier reply_all SEC Take ACTION Now! February 20, 2018

Wow. You really need to do some reading.

Marc February 19, 2018

I stumbled across Bitcoin and Cryptos in March of 2017. Little did I know my timing would turn out to be life changing. I had profits of over 1300% in Dec. 2017 before the market started it’s much needed correction. I’m at over 700% profit as of today and I’m more confident than ever that my investment will grow at least another 1000% in 2018 and probably 2019. To all of you that think this is a Ponzi or talk about Tulips I’m glad you share your opinions and I’m very glad you are not investing in cryptocurrencies. You see you all are the weak hands that we shake out each time we have a correction. The fewer of you that jump in and get burned, the fewer corrections we’ll need to keep the market honest. If by chance someone really wants to learn about cryptocurrencies there are many books available and people who are great Bitcoin evangelists that will “hold your hand” and do everything in their power to help you along this path. Crypto Assets by Chris Burniske is a great read. You Tube videos by Andreas Antonopoulos and Tone Vays. I’m also enjoying the Weiss Crypto Ratings and getting a real kick out of the people bent out of shape because “their” coin is rated low. Read the logic behind the ratings. It is very simple. Most of these coins are very young and are not even being used for their intended purpose yet. As these coins mature you will see ratings rise and of course some will go lower still, but that is bound to happen when you have thousands of projects coming online. Buy the Dip and HODL!!

Fred February 20, 2018

Although I use electronics to pay my bills and receive THAT with which to pay; I do believe in something in my hand to pay at a restaurant or elsewhere.
I also, see the potential of an Electro-magnetic Pulse wiping out the possibility to use money transfers as I do.
The question in my mind is What happens when I have all these stored currencies with nothing in HAND, how do I use them (Crypto) should an EMP does happen?

john s February 20, 2018

Ripple (XRP) is likely the “safest” crypto investment.

Smed reply_all john s February 23, 2018

You may be right about Ripple because that banks use it. Is interesting because Ripple works against the theme of anonymity of cryptos.

Jerzy February 20, 2018

Dear Martin.

Huge thanks for your marvelous work!!!

To your question.

The block-chain technology is a marble enabling, among other things, cryptocurrencies which puts all of the crooks like governments, feds and their underdogs out of their dirty business of leeching on the hard working people.

Does anyone think they are going to go out of business allowing cryptocurrencies to replace their ponzi skims?

We already have some examples.

So they have to “control” cryptocurrencies or get reed of them all together for their own advantage.
Unfortunately, some form of control would be welcomed to stop scammers. If governments could do it making sure “their” taxes are extracted would probably be a middle ground. But will they kill the feds and their underdog banks? Unlikely.

However, the block-chain technology is here to stay and the powers to be are going to enslave us completely using it.

Kind regards

Jerzy Wlodarczyk

Ihor February 20, 2018

Dear Martin and Juan,
Good day,

I started use Weiss cryptocurrency rating.
I found out that score of different coins is changed to positive after price is jumped.
But how to earn on it.
For example when you update your rating and add score to crypto, it is doesn’t grow anymore.
I know that this market is very risky, but you make your updates weekly, not monthly.
It is logical, that if I use your reccomendation and buy coin, price should grow and after one week I can sell for example and earn.
A lot of coins grows all last week up to 50% per week, but score was C, and I didn’t buy it…
Please also comment situation with Lisk, as I invested in it after crypto rating, whichI received this week, and price dropped(
But for example last week price was 22 USD,but score was C.

Pétur Jónson February 20, 2018

Crypto should be banned,this is totally the same gimmick as the “Bernie Madoff”kind of
chain letter fraud,as we called it here in Iceland in the seventies,that was banned.

Ed Glazier February 20, 2018

No doubt this is a volatile market and there is definitely some associated risk. The question posed that I haven’t really seen answered here was how to manage that risk effectively. My strategy is basic but seems to be serving me well – buy the dips and sell the peaks. I work on the basis that a 50% loss of value is time to buy and a 200% increase is time to sell. So far I’ve turned an initial investment of £1,500 into around £15,000 using this strategy and have a current exposure of £5,000. Leaving this stake in for now as I fully expect Ripple to hit $5 this year and to convert any more into FIAT before April would mean paying CGT on the profits. Advice I give to all friends and family is to only play with what you can afford to lose and set yourself limits and stick to them.

Allen February 20, 2018

You are right that the dollar bill is just a piece of printed paper, however, to gain acceptance as money it was backed by the rare and desired metals, gold and silver. After many decades of use that built perceived value the connection was severed. A car that cost $3,300 new in 1968 would cost $35,000 today. People are catching on. Crypto-currencies are backed by the air we breathe. The idea is on the right track, but still has a key ingredient missing. Until that is figured out I will not exchange my work for thin air. Gamble with it? Maybe.

bryan sondburg February 20, 2018

I have no management for cryptocurrency, I have seen nothing positive with bitcoin or crypto.
I too dont think there would or will be any intrinsic value as time passes. Tell me im wrong.

Jim reply_all bryan sondburg February 20, 2018

Your wrong.

whay reply_all bryan sondburg February 22, 2018

Your are not only wrong but out of step with the changing time.

Nick February 20, 2018

In order for me to feel comfortable investing in a cryptocurrency, both the cryptocurrency exchanges and warehouses would have to be 100% safe against hacker intrusions as well as the same level of protection for my personal store of crypto currencies.

Goran Spasovski February 20, 2018

I was introduced to the Bitcoin in the early stage by a very serious group of people. From that time on, I have resistance to this idea, although I could see the technical advantages and the possibility of financial impact on first investments and then on the economy. I very well know what digital word is and its perfect effects that can fascinate everyone, like a hologram. There is always one “Black Button”, much more dangerous than many “Red Buttons” from today, that can winch everything in no time. Do not tell me that today’s morality is ready for that. We are building roof bevor the house and that’s why I cannot see it real.

Do not take me wrong, I could be a good investment like any bauble was. It depends on energy, communications and many attributes of high developed societies. How can we go there if we didn’t adopt Tesla’s free energy and communication? Our morality didn’t allow that and we also didn’t change it, so the digital world will be used for manipulation.

I consider cryptocurrency for controlled investment because our world does not operate on money anyway.

mark e price February 20, 2018

It seems to me that the only value of CRYPTOCURRENCIES is that people agree to use it, and people are fickle. The market could easily be diluted by some NEW offering. It could be subject to trendiness. Traditional currencies are now based on the supporting governments ability to back those currencies by the power of taxation. It also seems that any virtual currency is like fog; when the “heat of the sun” shines on it, it can vaporize and disappear.What controls or prevents inflation or deflation. What determines its exchange rate against traditional currencies? How can something on such a basis gain and maintain confidence? Who’s going to decide which currency is going to be used? What keeps it from being “funny money”?

phillip schelinski February 20, 2018

I have a hardware wallet however very hesitant to select well vetted crypto products.
And when Are you going to cover the demise of the PetroDollar and when the FED might freeze assets

mark e price February 20, 2018

It seems to me that the only value is that people agree to use it, and people are fickle. The market could easily be diluted by some NEW offering. It could be subject to trendiness. Traditional currencies are now based on the supporting governments ability to back those currencies by the power of taxation. It also seems that any virtual currency is like fog; when the “heat of the sun” shines on it, it can vaporize and disappear.What controls or prevents inflation or deflation. What determines its exchange rate against traditional currencies? How can something on such a basis gain and maintain confidence? Who’s going to decide which currency is going to be used? What keeps it from being “funny money”?

David February 20, 2018

Hard to see what Cryptos are functionally FOR at this point, other than as a speculative tool to sop up all the cash-with-nowhere-to-go sloshing around the world now. Blockchain technology is intimidatingly difficult to understand,. although I’m willing to buy that it’s going to prove useful, and perhaps eventually revolutionary, as a structure for exchange at some time in the future. I gather that much of the credence has to do with disillusionment with how governments are handling economies.

My own perspective (and advice for any newbie) is to risk NOTHING with Cryptos at this point other than that which you can afford to lose utterly (I personally have bought Cryptos with spare cash, and have done well up to now. But it was spare cash).

Sadru Alladina February 21, 2018

Not interested in cryptocurrency. Thanks.

Sadru.

Duncan February 21, 2018

Crypto-technologies will completely disrupt hegemony of all forms regardless of origin. The maker economy will flourish and the move from petroleum centric industries will accelerate. I’m watching to see if America takes the route of the Ottoman Empire and tries to preserve the existing economic model or turn the corner and embrace a future where the individual becomes the true center of economic vitality.

Jerzy Toranski reply_all Duncan February 21, 2018

Pure utopia, my friend. Communism came to power in 1917 promising miracles for all. Ask yourself what happened with its promises and ideology itself?
When I look into my crystal ball I see two options on a long horizon: one, total dominance of a dollar on a world stage or total collapse of all economies around the world. Prompted by the dollar issuer to step out and allow chaos to take place. Then, to step in, again, and provide order out of chaos with the total dominance of whatever currency they will bring in at that time. The only question is which option come to fruition first. Where, your cryptocurrency will be at that time? up in smock, I presume. There is actually a third option: continuance of what we have. Winston Churchill said once: “democracy may not be the best form of government but its best we have” . I will paraphrase: current system may not be the best but its best of what we have at the moment with all of its shortcomings and yes, problems.

Jack Eusey February 21, 2018

I believe in the future of crypto currencies even as I watch them reduce in value today

James February 21, 2018

I agree with government officials that cryptocurrencies have no intrinsic value and should go to zero. I also believe the U.S. dollar has no intrinsic value and should go to zero.

jan reply_all James February 21, 2018

then why are you here

Jerzy Toranski reply_all James February 21, 2018

With all due respect, I object , US dollar will never go to zero for as long as we have the most powerful armies on the planet, even if all economies will collapse. I do not foresee this to change soon. It will go up and down and float but it always will have value as long as there is superpower to support it. So, the presumption, of no value in a fiat currency such as dollar is pure ignorance. As a reserve currency stabilizes other fiat money all around the world providing stability and benchmark measure against it. All international banks of all nations horde dollar. So to let it go down would mean allowing by everybody to loose savings they have worked for decades. It is actually better than gold as it has the most liquidity in any given time. It can only be superseded by gold in times of total world wide collapse. So, ask yourselves where the cryptocurrency will be at that time?
Dollar may go up in smock but only at the agreement of all participants in unison, or, dropped by the issuer. I want to see this happening. Right.

Stephen Yu February 21, 2018

Cryptocurrency has no value at all. Only crooke wants it to make a faked profit to cheat people.

jan February 21, 2018

is this the link I open to listen to the 2/28 2p.m. EST presentation on cryptocurrencies?

so I guess everyone on this blog is fat and sassy with cryptos up the yin/yang

I’ll be watching you

Dawn P at Weiss Ratings reply_all jan February 22, 2018

Hi Jan, you can attend the event here: https://weisscryptocurrencyratings.com/reports/WCP/event/pro/

Michael W. February 21, 2018

Thanks for an opportunity to comment. I invested approximately 9-10 K in BTC during 2014-2015. Since then I have purchased a few other coins and I have for the most part stayed in a HOLDIng pattern. Today my portfolio is estimated at 310 K and all I do is watch it go up and down with the volatility of the markets. In November/December 2017 I watched the total move upwards of 510K. I’m okay with that and it will move up beyond that again.

Jerzy Toranski February 21, 2018

I am exited to have opportunity to listen to the upcoming presentation regarding cryptocurrency.
I am most scepticle about its real value. Yes, you can trade them and even make a lot of money for now. But there is nothing behind to support empty paper just like fiat money. With the exception that fiat money is well established and fully supported by all governments. Also, how can you substantiate bit coin or other form of cryptocurrency when all the markets collapsed? How can you trade if markets no longer function for whatever reason? How can you use it if internet closed? How can you use it if price to purchase one varies to the most degree between the issuers. How then, can be used as a media by millions to exchange value? Therefore, it exist just like any “financial paper”, no more and no less. Its not a tool to store value in times of crises, b/c it has no intrinsic value such as gold or silver that always will retain minimum value no matter what the circumstances. It can not be traded outside of internet because someone must keep all the records at all times. It goes in price just like any other stock and goes down like a stock. So, if walks like a duck and smell like a duck it must be a duck. So, please come on and prove me wrong it would be most helpful.

Trevor Marshall February 22, 2018

Lets talk frankly about risk. The entire wordlide banking sector was in serious trouble back in 2007. The ONLY reason that it did not collaps completely is that the governments of the world effectively STOLE wealth from the masses and saved the banking industry. Period. So any argument that calims FIAT is “SAFE” and Crypto is dangerous is factually incorrect. The very reason that Crypo is seeing such support is that the people of the world can not understand why the governments and the banking elite should be allowed to steal wealth through the money printing scam forever.
Cryptio is the future and bankers need NOT apply.

Stefano Cipriani February 22, 2018

I still do not feel comfortable with all these new coins. Too many forks and too many ICO and too much of everything made everything confused .
Giving for grant that BTC/LTC/ ETH are currencies I don’t really understand what I receive when I am taking part tto anICO. If I invest some BTC in one new ICO I do not get any share of the new project. I just receive something that will be eventually traded with a value that nobody knows.
But the ICO Dev team receive from me something that have a real value and they can exchange it in Fiat immediately.
I don’t understand why so many people invest in ICO and why they think to make so much profit out of it.
I don’t complain ICO but at least the token should give to subscribers shares of future profits same as a share
Why nobody make ICO that give proportional shares of future company yearly profits same as a stock?
Hope this will will change soon and then ICO will return to be an option to me.

Danjango February 22, 2018

The article seems to imply that crypto currencies are NOT fiat, like every other type of money. It also doesn’t clarify whether the type of independence from central authority implies wealth generation without tax obligation, which also seems disingenuous. Pls explain.

John Warner February 22, 2018

Will there be a repeat of the presentation? I have a doctors appointment at that time which I can’t skip.

Todd February 22, 2018

I believe cryptocurrencies have value, the financial “Gurus” want you to believe they dont, all you have to do is have an open mind to see that the world is changing and this is part of the change. I definitely want to get educated on cryptos. with the Government officials locking the Marijuana companies out of the banking industry cryptocurrencies are safer than carrying cash around, its going to take 1 or 2 robberies of the marijuana shops that deal directly with cash before people realize that cryptos would have prevented those actions from happening.
the banks never have and never will look out for our safety. and they are panicking to squash this Crypto craze.
bottom line is … if you are a sheep, waiting for the banks to do the right thing! you will be led to the slaughter!

JAMES FARRIS February 22, 2018

I guess, like everything, it is only as good and honest as the “people” running the thing. Can it be stolen? Yes even easier than paper money. As easy as a line of code in a computer or a gun pointed at a guard.
My biggest problem with it is when something goes wrong, even minor. You already have these multi nation companies that sell something and something goes wrong. Try, like with MagicJack, to find a way to get help when they show you have paid for more than 3 years in advance, and yet your magic jack will not work. You jump around clicking for hours and end back at the first page of 100’s that you started with. No one to talk to, except a machine with clicks. Finally give up and go to a new company and lose your $300.
Not just complaining, But how does anyone know who runs these things. If HONESTY (which most people do not even know what that means, except maybe STUPID) were around any more, anyone would can see the advantage, but my biggest worry would be that the GOVERNMENTS with the BANKS, are the final controllers, and we all know how honest they are. Just make it illegal…Simple

John Heinl February 22, 2018

Where is the advice on crypto wallets? I am bombarded with advice on what to buy, but not how. Some wallets are more secure and easier to set up than others. Which ones are the best?

phil reply_all John Heinl February 22, 2018

Use the Exodus io wallet, solid and easy to set up.

Terry February 22, 2018

My question is where can you go to trade crypto currencies? What are the steps to do so? So many companies out there talking about crypto but nobody says where to go to open an account.

Ray February 22, 2018

Do I own crypto ? Yes do I think it is a good longterm investment because of the new blockchain technology? yes

I was finaly convinced to invest an amount of money i was willing to loose after my 17 year old son told me i should invest. I brushed him off stating what little i knew about bitcoin was an idea that hardly went anywhere for years. Bitcoin i believe has been around for almost ten years now and has had little movement in price or utility for the first 6 years . The blockchain technology and the exchanges were still developing therefore there wasn’t much of a market say 5 years ago. Kudos for those brave souls that invested in this idea so early on but i am sure there were many that didn’t think there was a snowballs chance in hell it would shoot up 1,000 percent in 1 year. Looking back at the charts it seems the best time to really get in was sometime in 2015 when there were exchanges open to trade it. This irrational exuberance and the FOMO (fear of missing out ) along with youtube and all the millenials using social media to hype and buy into the dream in my opinion is what is really driving the train. I am currently invested in crypto in 4 exchanges. As i constantly monitor what the buying and selling patterns are i have come to the conclusion that the majority of the participants are very small players. I have seen trades of a crypto coin as low as 5 dollars simply because it is easy and accessible to basically kids worldwide. My son trades on his phone as do his friends. This phenomenon is amazing to me since my first stock trading account required a minimum of $10,000 in order to buy anything. The total democratization and the ease at which they do it for almost no fees is what is the fuel for this paradigm shift in the financial industry. Although this is a good thing to bring way more traders in this market than the stock exchanges they are young and inexperienced traders, i believe this has caused much of this panic selling in the markets and cause most of the volatility in the markets. then there are the whales and groups that pump and dump and move the market. Im in for now but probobly not for long. we shall see what happens in the next 6 months.

phil February 22, 2018

I read about crypto in 2016. Waited till April 2017, Than bought 5000 NEO coins for $7.00 each. Today I still hold all 5000 NEO. I am a happy happy man.

Ray February 22, 2018

I think my biggest question about crypto is, when the fundamentals of utility and your ratings are positive on a crypto, along with overwhelmingly good press why would a coin go down in value? Seems like the markets are being moved by traders that don’t have a grasp on macroeconomics and valuations like the professionals in the stock markets. My biggest fear is the irrationality of this market not the groundbreaking blockchain technology that the world is adopting just like the internet. Wiring money and its obscene fees will go away in the near future as will exhobitant credit card fees with the advance and adoption of crypto such as ripple. It just cost me exactly 98 cents to move 3,000 dollars worth of ripple from south korea to a us exchange and it was completed in 38 seconds. To all the skeptics, That is why crypto is the future!!!!!

Grace February 22, 2018

Already cryptos are being traded on the commodities market, so tell us how the overall stock market will be affected by cryptos. There’s something unreal about trading cryptos. Am not sure nations will grant them credibility. Time will tell.

Ed February 22, 2018

Think bitcoin will see $ 9.00 in two years.

Ed

Joan Blumenfeld February 23, 2018

I joined Coinbase about 3 years ago to help pay for some on line programs and I should have left some of my money in coinbase but did not. Today I have both bitcoin and ethereum that I keep in my coinbase account because I think that cryptocurrencies are here to stay and will continue to go up and fluctuate at times. I have to credit Martin Weiss for the education in investing that I learned from his Safemoney news letter which I did take for many years. Thanks Martin Weiss
A grateful student
Joan

Vinh February 23, 2018

Why is the upcoming “Emergency Cryptocurrency Briefing” and emergency? Is blockchain falling apart?

Dawn P at Weiss Ratings reply_all Vinh February 23, 2018

Hi Vinh, there are a lot of reasons. Tune in to find out. But I can tell you that our ratings can change weekly on these cryptos, because there is always something timely happening in this space.

Jerry February 23, 2018

I believe we should all appreciate that we can witness this transformation of the world. Indeed the impact of blockchain technology will be much more profound than majority imagines today and will in my opinion change humanity to become more responsible and respectful towards each other. Extreme advances in technology are just the most obvious benefit. BTW, not sure how many are aware, but today there is already P2P energy trading implemented through blockchain technology by SunContract (SNC) … Not just ideas and promises

Bill February 23, 2018

I do not have enough knowledge of cryptocurrencies to comment on at this time. Hope to learn from webinar.

Jerry Hutchins February 23, 2018

I bought one Bitcoin when it was a little over $1,000.
How I do things is like this.
When it went to $3,000, I sold 1/2 of it and made a quick 50% return on my investment.
I now own .5064 Bitcoin that is worth $5,128 at this writing with no skin in the game and a $500 profit in my jeans.
I read where it will be worth zero or $1,000,000 per Bitcoin one day.
Time will tell.
“Frankly My Dear, I don’t give a damn”.

Tony February 23, 2018

For the time being investing in, Bitcoig is a gamble. Its ultimate value will depend on the public’s perception of its legitimacy as a store of value or its acceptance as a currency

Chris Merriam-Leith February 23, 2018

I would challenge you to invite Andreas Antonopoulos into your roundtable of experts for his keen insights and ability to bring a very clear understanding about the future of blockchain and the new era that it’s ushering in.

E.R. Lake February 23, 2018

I think C- is max. I would give it. Anything that moves in the amount they have I think have
More risk to it.
Time will tell and it is like everything else you can’t take it with you, but has sure has created a lot of fun.

JIM D. MYERS February 23, 2018

I BELIEVE YOUR RATINGS AND COMMENTS ARE IN GOOD TASTE.

YOU ALWAYS TELL IT LIKE IT IS, NOT WHAT SOME INVESTORS WANT TO HEAR.

KEEP UP THE GOOD WORK.

JIM D. MYERS

Bernard Benson February 23, 2018

I still don’t understand what cryocurencies are. So I have no commit.

Hank February 23, 2018

Cryptos are overall a small percentage of currencies and if they join the market like bitcoin did, then they are vulnerable to being manipulated in the futures markets. Also coins like bitcoin require ever increasing amounts of actual energy to mine new coins which makes it inaccessible to most small miners. It also appears to be a “scheme” in the sense the early miners reap disproportionate rewards. Also there is a paper trail when one has to exchange bitcoin for legal currencies and perhaps when making purchases at retail locations.

Farzin February 23, 2018

I started mining Bitcoin through pool.bitcoiin.com in July 2017, and Bitcoin was worth about $2,750 at the time. I have done well there, I already recovered my investment in that pool, and from now on, whatever BTC and BCH that I mine in that pool will give me a very small daily revenue stream. pool.bitcoin.com is in the process of moving all their mining equipment from China to the USA, and should be back online by the end of April 2018.

I have also made three trades in the Bitcoin Investment Trust. The first trade I made about $7K, the second trade I lost about $2K. The third trade, I got into GBTC at $17.78, watched it go all the way down to $10.05, now it is back up to $17.78, so I am even and am still holding.

I am an Electrical Engineer. In general, I am interested in learning more about the technical details of Blockchain and how it works. If anyone else also has interest in that, we can connect. I already took the online course that Roger Ver offers regarding the basics of Blockchain and Bitcoin.

Paula February 23, 2018

Hi Martin,

I definitely believe crypto currencies are the future of exchange for goods and services. It has a very strong intrinsic value for businesses and individuals by blocking interference of govt, big corporations and others who manipulate, tax and scam the general public.
It enables all to keep their finances private and protected.
I have been reading different articles, but am still confused as to how it works, the use of a blockchain and how to set up an account.

But, if it’s the wave of the future, I’m in.

george reply_all Paula February 24, 2018

its a wave which will fizzle out on the beach as soon as SEC and Central Banks are ready to kill it.
I expect soon.
Have you ever heard of a nation which knowingly allows tax fraud, money laundering and disrupting the legit work of a government to protect its industry and people?
In Holland you had tulips – at least one practical “commodity”
and still it blew up.
The euro has 26 or more productive nations at its base with over 500 million well educated and industrial people.
The dollar equally, like the Yuan and the Yen. There is real stuff behind these currencies – the cryptos have nothing, nada, nil, null!!

AZ Eagle February 23, 2018

You might as well be debating the values of Monopoly money versus Japanese money from WWII versus Confederate money from the Civil War. Those items actually had value at one time in a game and during two wars. But now that anyone and everyone can create their own FUNNY MONEY aka “cryptocurrency” the game and the wars are over. Sell now because the funny money will be worthless.

More than a thousand online currencies so far, more being launched every week and the Nigerian scammers are moving into this funny money market. The SEC needs to shut down all trading and conduct a complete investigation of the scammers. When the tide rolls out, we will see who’s been swimming naked.

Nancy Call February 23, 2018

I just started buying Bitcoin last Nov. I use only money that I feel I can lose. I got in just before it dropped down to $10,00 and on to around $5,000. I stayed in and Bitcoin is now
up again. I will take my initial money out this week and play with my returns. I am 86 yrs.
old…anyone can learn to do this type of investing…remembering that is very volatile and
one has to be able to ignore the ups and downs.
As for your question, I think your C is too low. This is the money of the future and the banks
Will fight it, but the smart ones will come around. I am with the younger generation…it is
their future.

george reply_all Nancy Call February 24, 2018

so you are 86?? always thought that starting with the age of 80 people are getting smart from all their life’s experience.
Take the title profit you may have left and run and put it into something real – like the education of your grandchildren.
Greetings George

see my comment below

Aurele Drysdale February 23, 2018

I am anxious to know what your take is on crypto currencies I have been involved for 1 year or so .. I have done ok .
I am really kean on learning more on the next bitcoin when to sell and when to buy ! Looking forward to your presentation .

Michael Richardson February 23, 2018

Cardano ADA – 3rd gen and once Shelly released will be rated A+

Jerry reply_all Michael Richardson February 23, 2018

Agree!

Richard L. Cure February 23, 2018

Question. What happens to the value of a crypto if an EMP is used anywhere in the world? What happens to the value of a crypto if an EMP is used where you are at? What happens to your crypto values if all your cell phones and computers are destroyed by an EMP? How do you regain your values after an EMP?

Greg February 23, 2018

Martin, will you name the 5 cryptos to avoid, or simply warn about them?
C + rating for Bitcoin is fine. Every crypto is C+ until after you learn where they actually went. Hindsight is wonderful . That is why we take RISK when investing. The risk is either rewarded or else a loss is sustained.

John February 23, 2018

When bitcoin hit 19,000 I was up 7000%, now I’m only up 4000%, poor me

Bruce Willock February 23, 2018

I am in neither camp – – being a novice and struggling to understand where/how the wealth is created and whether cryptocurrency wealth can be converted to sovereign nation currency and spent/invested in normal ways, e.g. Amazon, Dell, Whole Foods, mutual funds, etc Is a particular coin/token valued daily against the USD, Euro, Yen ? There is a pizzeria in my No. CA town that accepts Bitcoins. Illustratively, let’s say I invest $1,000 USD and it buys 100 Bitcoins at $10.00 each. A month later each Bitcoin is worth $20.00. I buy a medium size pizza for $20.00. So is a single Bitcoin transferred from my wallet to the pizzeria ? Please provide straight forward examples – – involving miners (who produce a highly technical product) and buyers of the miners product – – relative to pricing and completing the transaction. And last, why is the Bitcoin supply limited ? Who made that decision and why the particular limit ? And who. if anyone, has the authority to overide that decision ? And last, governments will almost certainly oversee crypocurrency scams, income/estate tax issues etc. I recently read about a young man, invested in crypocurrency, who is missing or dead. Parents don’t know his ID/password. A government agency will almost certainly (and rightfully in my view) decide who owns the decedent’s cryptocurrency wealth.

K. Landegent February 24, 2018

With the current state of bitcoin I does indeed deserve a c+ or lower. It’s transaction speed and price are not something to be enthusiastic about. I have better experience with other crypto currencies.

Andy Lamon February 24, 2018

SOUNDS really logical! Right now i am all ears and eyes absorbing like a sponge.

Joan Blumenfeld February 24, 2018

I truly think Cryptocurrency is here to stay and it will go up and down in value as the markets manipulate it to make money. Ido think Bitcoin and Ethereum will increase in valuation big time in the next year or so and more institutions will use it as a way to do their business

Richard Browne February 24, 2018

I believe that BitCoin is nothing more than a bug in search of a windshield. It will drop to $200 long before it returns to $20,000.

Invano February 24, 2018

Real issue is…. Who is accountable? So your account is worth 10 million in digital value. You try to cash in and nothing happens. THEN WHAT..! You board a flight to China or west Africa and bash in someone’s head who with his computer… wiped you out? When the IRS wakes up… we shall see how smart these geeks are that they believe they can screw over one of the most powerful agencies of the federal government. Also who is holding your cash? They have no fiduciary responsibility to you. What law? Who enforces honesty in the system….some computer code on a “block chain.” This is so unenforceable I wish I started this scam and set it up in eastern Europe.

george February 24, 2018

Your exposee above sound breathless and desperate.
What do you think will happen when governments and regulatory institutions and especially Central Banks are starting to regulate or even forbid the use of these “currencies”. ? (As is happening right now in various countries.)
Does anyone really believe that nations large and small will forego the ability to regulate their economies by manipulating their national currency?
Why did “bitcoin” loose half its value in recent few weeks.

O. RAY SHEETS February 24, 2018

IN ABOUT THE LAST FOUR MONTHS, I HAVE MADE SEVERAL INVESTMENTS IN BITCOIN INVESTMENT TRUST ( GBTC) AND IN OVERSTOCK COM ( OSTK). MY HIGHEST RETURN WAS 70% IN ABOUT 2 WEEKS, NEXT ABOUT 40% IN ABOUT THREE WEEKS. PRESENTLY, I AM UP ABOUT 24% IN ABOUT TWO WEEKS. I PUT STOPS WHEN I BUY TO AVOID SUBSTANTIAL LOSSES. TO DATE, I HAVE NOT HAD A LOSS ON ANY OF THE TRADES.

Carl p February 24, 2018

I think you are exactly correct, the gov has no right to tell us what we want or need or how to pay for it, this is just what everyone needs, but doesnt know it, decentralization of everything is good for everyone…

Chuck Gant February 24, 2018

It is actually amazing that there is a growing adoption of this new environment. Not because of the red herring intrinsic value issue but rather because of the incredible obtuseness of the entry/purchase/trade process. Just the KYC/AML walls set up are fairly daunting for new entrants to the domain. Personally, in spite of long experience with software development, I have been constantly delayed or blocked trying to fulfill web form requirements that were poorly implemented or described, and it took me a lot of effort to overcome them. With national currencies, you only have to sign up one time at your bank and you are good to go. With the coin market, you have to get accounts with many exchanges to get the diversification you need, though that is getting better. CVC and others are working on a KYC environment where the data can reside so everyone’s personal information doesn’t have to get duplicated and stored in multiple exchanges.
You still have to buy either BTC or ETH before you can get diversified, and then there are large losses using them to buy other coins after moving them to other exchanges using keys that are completely nonsensical to people new to the environment.
We have to get past all this and beyond new buyers who want to throw money at a dartboard thinking that their $100 will make them millionaires in a week, maybe two, and get to a place where new buyers can see a coin’s plan and buy something that might mean productive work will be done and the coin will have value based on that.

Ian Wagner reply_all Chuck Gant February 24, 2018

Chuck you can buy coin directly here… http://www.coinspot.com.au.
You may pay a little more in fees but at least you know you have bought what you wanted in the first place.
And don’t be put off by the fact that this exchange is based in Australia.
Once you have purchased the coin you really want you can immediately transfer to a personal wallet.

Al B February 24, 2018

At 73, and retired for 10 years very happily, I can only say that I worked away to hard to suffer thru the vagaries of rapid changes in value to even consider Crypto anything. I know I’m a Ludite, but a happy one with no worries.

E. Roy Birkett February 24, 2018

Congratulatins on one of your very best articles.

Les Barbusinski February 24, 2018

I would invest in crypto-currencies if …
1. They are regulated by someone so that I have some assurance that I am not investing in a Ponsi scheme.
2. Information about the entity offering the cryptocurrency (locations, officers, financials, description of the technologies, etc.) is publicly available, published quarterly, and certified by an auditor.
3. They can be traded on an exchange where the transactions are easy and timely (like E-Trade or TD Ameritrade),
and the exchange lists all certified cryptocurrencies … not just two or three.
4. They can be traded on an exchange where I can easily exchange my cryptocurrency holdings for cash or another cryptocurrency.
5. They are traded on an exchange where I have some assurance that I will not lose all of my holdings to a hack of the exchange (as has already happened), or in an inadvertent loss of the encryption key (as has already happened).

Stanley February 24, 2018

Where do I find a stock market or ???? that offers cripto currencies, listing names & prices.
Can these stocks be traded through out the day?

Robert reply_all Stanley February 26, 2018

Go to http://www.coinmarketcap.com as a starting point. They list coins and tokens in order of total number of coins times their value in dollars. Tap on the item (coin name) and you will be taken to more information about it.

Since these items are international, they trade 24 hours 7 days a week. To see what countries are buying Bitcoin and at what price, go to http://www.fiatleak.com and uncheck the box labelled Hide Animation. Then watch it for sometime, as every trade in the Bitcoin Blockchain is listed.

To learn about money I suggest the 9 videos on http://www.youtube.com under the title, “The Secrets of Money” by Mike Maloney. –especially number 8.

The most knowledgeable geek, consultant to governments, and world lecturer about the Blockchain and Cryptocurrencies is Andreas Antonopoulos. He has numerous talks on You Tube about the subject. Since 2014 he has traveled the world and earned his living, paid his video crew, and paid his travel expenses using Bitcoin. He will accept payment for a talk in local currency or Bitcoin. If in Bitcoin the charge is 20% less, since the money is available to him within the hour, wheres the local currency may take weeks to receive the payment to his US bank.

Robert

Andy Lamon February 24, 2018

I have no strategy for protection.First of all i’m not invested yet.I need to be taught the very basics: How to buy..Where to buy..What to buy and why..When to sell..When to hold..How to invest in Blockchain..How to invest in peripheral businesses associated with Blockchain and etc.

Ed February 24, 2018

I’ll wait for US to issue one!

Ed

K February 25, 2018

Some are legit and will find and have a long ongoing life with millionaire beneficiaries. the bulk of the 3000 plus present ones will go by the wayside with even bigger numbers of folks losing their wealth in the “wrong” choices they make.

Gerald Voecks February 25, 2018

If there are so many crypto-currencies, just like there are so many national currencies like the dollar, ruble, rupee, etc, how can one purchase anything without knowing what the value of one crypto, versus another, is and how do I know who is responsible of assigning that value to any particular crypto?

Pete reply_all Gerald Voecks February 25, 2018

Provided the banks do not get control via futures the markets will determine value. Exactly as it should be !!!

Pete February 25, 2018

looks like a couple of the cryptos backed by gold could be quite interesting. Still early days too so still cheap. Cryptos are here to stay for sure although central banks will probably try to defame them and get them under control. I suspect the big banks are terrified of the power that they give back to the people. Long live the revolution I say !!!!

Raymond H Lutz February 25, 2018

Martin,

I am interested in learning more about the cryptocurrencies drama! I have registered for your webinar
–Raymond

Jerry Hoey February 25, 2018

I believe in the cryptocurriency, however what no one discuss’s is what exchange would you recommend in order to participate.

I have been waiting on Coinbase for 2 months to get verified. I am on Gemini, however they a very limited variety of coins to buy.

Please address this situation in your seminar.

john willis February 25, 2018

One aspect of crypto I had been overlooking are the tax implications. The way I understand it, every sale of crypto is a taxable event, assuming profit is made. If that is so, it would seem important to to deal with such in advance of owing a lot of money to the tax man. I would be interested to know how to open or fund an existing Roth Ira with Cryptos. Such would go a long way to solving this very nasty problem.

pinkywindbell February 25, 2018

To make a eco system, you need not only goods or services to sell or buy, but also a job to earn money. Otherwise it will be back to an old age of trading by the barter.

pinkywindbell February 25, 2018

To make a eco system, you need not only goods or services to sell or buy, but also a job to earn money. Otherwise it will be back to an old age of trading by the barter.

Phil February 25, 2018

I don’t have any comment at this time,, but am enjoying learning about this new field of investment. There must be some value in the crypto and I figure if I can pay for my steak dinner with a Texas Steakhhouse with my their app then I need to become more educated about how the current and future economy works.

Steven B Coy February 25, 2018

I CAN’T SEEM TO GRIP THESE CRYPTO COINS, IT SEEMS TO ME YOUR BUYING AIR !! WHO IS RUNNING THIS, WHICH ONE IS THE ONE TO BUY AND WHY SO MANY DIFFERENT COMPANIES AND WHERE ARE THEY AND HOW WOULD YOU FIND THEM IF ONE DAY THEY RAN AWAY, THERE IS NO ONE TO GO TO!!!! IT ALSO SEEMS TO ME THE GOVERNMENTS ARE STARTING TO REACT TO THESE DIFFERENT COMPANIES AND HOW IS THAT GOING TO AFFECT THE WAY THEY DO BUSINESS ???? I SEE SOME PEOPLE SAYING THERE HAVING PROBLEMS CASHING AND OR BUYING THESE DIFFERENT COINS, OR WHATEVER THEY ARE !!!! VIETNAM VET

dwight ellick February 25, 2018

I still dont know what exactly cripto is.I havnt invested because of that and because supercycle investor has not recommended any to my knowladge

Rick from Texas February 25, 2018

I am brand new at this. Where does one go to buy shares or crypto-shares (I’m not sure what to call them) in a particular company of platform? I have also heard that investment opportunities exist in companies that are creating secure environments for the crypto platforms. Is this true? What companies are out there? I can’t find any of this at AmeriTrade.

Thanks, Rick

Grace Campbell February 25, 2018

I know nothing about cryptocurrency – I would like to know about this

Dennis Jenkinson February 25, 2018

Anyone with ANY intelligence who has even the SLIGHTEST idea on how the banking system works is terribly excited about Cryptocurrencies! It is the first chance in a few hundred years to break the back of the Rothschild(Bauer) family banking cartel. ROLL ON!

raymond February 25, 2018

back it with a commodity . or precious metals, that you can hold in your hand, or show off on your neck, wrist, or finger. people are human, look at me.

Krakoukas February 25, 2018

The “this crypto token is baked by physical commodity X” line has been (ab-)used many times over the years, perhaps most recently by Venezuela and its Petro token.

It doesn’t take a genius to understand that Petro is not backed by oil, but by the full faith and credit of Venezuela itself, for all that it is worth. If that sounds reminiscent of some other non-crypto-based currency, it should.

Cryptocurrency is, at its core, one of the many facets of the consensual hallucination known as human culture, which apologies to William Gibson. Stay within the domain of consensus, and you’ll enjoy the relative herd safety that it provides. Stray into the domain of trusting specific entities, and you’ll expose yourself to an amount of risk that is hard to overstate.

Many here keep instinctively wanting to find something or someone to trust in this new model. It is a mistake that will continue to be made, and it betrays a fundamental misunderstanding of why Bitcoin succeeded where Liberty Reserve failed, to pick just one of many previous failed attempts. If it has a trusted element, it has a central point of failure, and it will more than likely fail because of it.

Having to trust someone or something doesn’t bring any intrinsic value. It may well destroy it however.

In the end, if you’re not able to understand why Bitcoin is fundamentally different from Liberty Reserve, and why Ripple is not, to pick a few popular examples, you’re missing out on a rather important way to think about the long term values of cryptocurrencies.

If you can grasp the difference, then you should also be able to see why most of the tokens issued atop Ethereum or one of the other token platforms are deeply problematic as well.

(and on that note, a rating system that muddies the waters by mixing trustless and trusted coins into a big happy flat list where both can somehow get a high score is unhelpful, at best. Caveat emptor.)

anton vassil February 25, 2018

i am not sure thet this is something for real no asset base

Confidant February 25, 2018

Crypto Currency is the future with people controlling it not the governments.

Paul February 25, 2018

Being new to this type of trade facilitation, it takes me by surprise that it seems that one item has left the room. Bitcoins seemed to be a very volatile in it’s perceived value. How could one know what the market will show when it has such a short history? If this is the general concept that it is worth what people think, is it not just like all trading in that it could also crash? So why such a push so to speak? Is it just that you can’t touch my net worth, and isn’t that situation similar to the unbreakable computer code? Just saying.

Bob Rushton February 26, 2018

I am a crypto currency advocate.
Here are some problems I face
1) I need a portal to obtain the crypto or also for the most part to cash it in for use in fiat world so there-in lies the problem with State Control and hoops with authentication.
2) If I Kick the bucket my estate is bound to lose the currency due to the lack of knowledge of my heirs on how to retrieve the crypto (authentication issues etc.)
3) Unlike a bank account, once your code is lost (through a thousand misadventures)
You have no recourse to recover.
4) Now with EFTs for cryptos on the stock market the Plunge Protection Team can now control the price of cryptos through the manipulation of naked shorts (similar to what they criminally do in the gold and silver markets

Your thoughts

John February 26, 2018

What is meant by intrinsic value?
I can understand food, water and housing have intrinsic value (and maybe military weapons if you live in the USA).
Cryptocurrencies or paper money can only be used to purchase things having intrinsic value if others are willing to accept them as payment.

Joe Bergmann February 26, 2018

The world is changing and we have to change with it! People are tired of being slaves to a centralised system that only a few people have control over. Crypto is only the beginning!

Annemarie Wang February 26, 2018

I am interested to learn much more about Crypto currencies.

Sandra February 26, 2018

Where does one place their money to be ready to purchase s crypto c
What is the first step, second, etc

Raymond Cen February 26, 2018

Martin,

I like you passion and ratings from very beginning. That is why I paid subscription fee for your organization. The initial B grade coins investment was disappointing. Could you elaborate the reasons behind it on Wednesday session?

Eventually your ratings and reputation would be judged not my how many methods and ratings you are using and how many experts you bring to talk. It is, like everything else in the street, by end result! We as subscribers how have more endurance than everage guys but please also tell us how long a period before we could see the result too.

Thanks,
Raymond Cen

Jack A Eldridge February 26, 2018

When the Govrnment needs more money the have the ability to just print more with nothing to suport it. Someday the American Dollar will be.worthless. At least the Cripto’s are like Gold, there is something you can hold to assure the current value.

Jack.Eldridge

Iverson Moore February 26, 2018

Have stayed on the sidelines until now. Lack of adequate information. Which ones (few no doubt) may be good? How to tell the difference? Where is the whole sector going? Interesting articles in Wall Street Journal last few days continue to raise the questions, Who cares about these algorithms? Isn’t the mining just a huge waste of resources to create something (math solutions) that no one needs or cares about, other then their difficulty? Where is the whole thing going?
Iverson

Bill February 26, 2018

I have heard that Blockchain technology is slow and should be replaced by a newer technology that is in the works.

Charles Harrison February 26, 2018

Right now I am stuck in the money camp. I am 84 and my retirement income is fixed money camp and my IRA roll over is in stocks. So I am not sure how I could join the crypto market.

William February 26, 2018

The value anchor of the dollar from 1863 until 1933 (when dumb jerk FDR outlawed gold) was the gold certificate.
Income taxes per se were not introduced until ratification of the 16th amendment which never should have happened. It has been nothing but downhill since 1913 with the above and the founding of a private Federal Reserve Bank. The days of the so-called US empire are truly numbered.

Carolyn Milone February 26, 2018

I am a “senior citizen” who bought bitcoin in 2013. Read all I could on it. Did not understand overall concept but could see this might be the answer, at least for
Americans, to take back control of our financial lives from the politicians. Our leaders have not done right for any of us—wealthy or poor. Middle class, backbone of the country, has been beaten down, manipulated for last 50 years. Politicians are scared to death of bitcoin. Blockchain is here to stay their biggest fear of losing their power based on taking and controlling our money. They want to continue destroying America by regulating us into oblivion. I know crypto currencies have been used to finance Islamic terrorism; however exchanges are attempting to identify these sites. I believe exchanges may be more successful at combating terror threats than our “leaders”. I fear regulation more than losing my cryptocurrecy investments.

Charles February 26, 2018

With such a platform free from the oversight of nation-states (ie. Crypto vs the Fed) what would be the incentive to fund governments? The current elites and power brokers will, I’m sure, feel threatened and could, it seems, shut these systems down via control and taking over the internet (think China for instance). On the other hand, by having control over the internet and all other forms of electronic communications it sounds like a greased slide to a one world government under those in control. What am I missing here?

Roy February 26, 2018

You need to go back to the 7th paragraph…..value is based on acceptance and usage.
Cryptocurrencies do NOT have acceptance and usage for payment to governments for taxes.
Nothing moree needs noted.

Peter February 26, 2018

No.
Cryptocurrencies carry a high degree of risk.

S Hamilton February 26, 2018

Crypto currencys is not so easy to secure . There are a lot of people out there that that can have access to your wallet or your block chain. How do you hold the coins how do you set up a secure account.

Sarah Shupe February 26, 2018

My concern is that cryptocurrency trading is dependent upon the internet running. Didn’t we have a “trial run” of our government taking the internet “down?” What can we do about that, if anything? If they cannot charge or tax our purchases with cryptocurrencies, what will that mean? We are still citizens of a certain country.

Do you see inflation hitting like it hit Germany during WWII? What do you think gold and silver will do? I am guessing that inflation will hit worldwide, leaving more people in the dust and along with it, metals will increase in value, helping those who already are invested in them. But let’s have a penny for your thoughts which are far more researched and valuable.

Carole February 26, 2018

Block Chain is the technical power behind cryptocurrencies. I think it is valuable step forward. Just like any technology, it will be used for good or for bad. The word “Ethereum” is a perfect name for crypto because it cannot be seen. It is transferred by special wallets and must be received by special computerized capability. These transactions are truly in the “Ether.” Since money is a medium of exchange, it has to have some measure of value. I think the people who are using this currency are in the underground economy and do not want to be attached to any transaction. Crypto will do away with the crime of money laundering. Is the banking industry ready to forfeit their stranglehold over the economy of every nation? Is it possible to completely overturn our economy for a virtual economy? Virtual reality is a real concept. You will have to explain to me how a monetary system can be overturned and a virtual monetary system can replace it. Are tulips in bloom yet?

Siggy L. February 26, 2018

My concerns include the multi-process involved in purchasing crypto-currencies. Also the need to coordinate between having a debit card, regular banking and need for wallet to avoid having coins lost or stolen.

Any comments?

STEPHEN KOVAKA February 26, 2018

Risk management:
1) Buy only after a nice washout such as we just saw in January. Don’t chase the price.

2) Buy a good variety of coins and tokens: nobody knows which horses will win, or even finish the race.

3) HODL, don’t trade around.

STEPHEN KOVAKA February 26, 2018

Biggest fear/question about the cryptos: What are you really buying? I understand BTC, LTC, DASH, etc., which all aim to be money used in exchange for goods and services. For the rest, what do you own when you buy them? They aren’t really money, and as far as I can tell you don’t own equity in anything, nor do they promise to repay or pay a dividend. Are they really just betting stubs in a horse race? I which case, how do we know when its time to cash them in?

Karl February 26, 2018

My biggest obstacle is the handling of the different exchanges an wallets and different passwords and precauions from being robbedmuch more than of volatility issues.
After (your) recommendations there is for me the much bigger problem to come to and througeh these diferent inhomogenous exchanges.
Is there a better manageable solution, that you can recommend?
Remember:
Retirees have not the ease to manage these issues, like the young ones growing up with those givens.
Thanks for help!

myron martin February 26, 2018

The problem most readers do not recognize about the status quo fractional reserve money creation system is that it was DESIGNED by a CABAL of private bankers (Federal Reserve Act of 1913) at Jekyll Island Georgia documentation in the booklet The Creature From Jekyll Island by G. Edward Griffin that through the Central Banking model now extant throughout the would in almost all countries has enslaved ordinary citizens to PERPETUAL DEBT. How is that you ask, well bankers will tell you “a convenient lie” i.e that all they do is act as brokers. paying depositors in their banks a low, (to-day almost non existent interest rate) of which they retain 10% AS A CONTINGENCY FUND AGAINST WITHDRAWALS, while loaning out the other 90% at a higher rate to make their profit on the spread. GREAT SOUNDING STORY, but nothing could be further from the truth!

In actual fact, deposits in a bank along with the banks own equity constitute the reserves against which banks can CREATE OUT OF THIN AIR with a ledger entry or key stroke nine NEW DOLLRS IN LOANS for every 10 they have in reserves, thats why it is called a “fractional reserve banking system” and if you doubt this Canada’s Central Banker in 1939, GRAHAM TOWERS testified before a a Parliamentary Finance Committee that, “EVERY BANK LOAN IS A NEW CREATION OF MONEY” AND WHEN IT IS PAID BACK IT CEASES TO EXIST” in other words it is CANCELLED OUT, SO TO KEEP ENOUGH CURRENCY IN CIRCULATION FOR A GROWING ECONOMY TO FLOURISH THERE MUST BE A CONSTANT AND GROWING LEVEL OF NEW LOANS TAKEN OUT COLLECTIVELY BY INDIVIDUALS, (consumer loans and mortgages) corporation to finance operations, new factories and equipment etc.and finally by various levels of government to finance infrastructure such as schools, hospitals, airports, electrical grids, sewer and water mains etc. for which governments issue BONDS to the bankers for which its citizens are liable, including the interest.

HOW Cn you loan out a liability? The mantra of the “establishment is, THE MAGIC OF COMPOUNDING” and indeed it works for the bankers, but for the 95% of average working people, THE OPPOSITE IS TRUE! WHAT IS REALLY COM[POUNDING IS DEBT, AND WHY IS THAT YOU ASK. SIMPLY BECAUSE UNDER OUR DEBT BASED FINANCING SYSTEM WHERE ONLY THE PRINCIPLE IS CREATED, INTEREST IS IMPOSSIBLE IN PERPETUITY, UNLESS THERE IS ALSO A CORRESPONDING INCREASE IN DEBT.

It is 8th grade mathematics, AS HAS ALREADY BEEN ESTABLISHED BY GRAHAM TOWERS TESTIMONY. SINCE LOANS WHEN PAID BACK, INTEREST, INCLUDED then it necessarily follows that to keep adequate currency in circulation, NEW LOANS not only must increase to include the interest siphoned off for the bankers profit, but also the paid back principal of the original loans, just to maintain the status quo of currency in circulation

CANADA is in a unique position to lead the way in throwing off the shackles of the private bankers underserved monopoly on currency creation, because our Bank Act differs from the U.S. Federal Reserve Act with one important clause few people know about, I daresay even politicians and academics are unaware of, or under a gag order, it is certainly not general knowledge. I need to do more research because I have not YET found out WHO the bureaucrat or architect was who was astute enough and brave enough to have a clause inserted in our Bank Act that granted the private bankers a charter to establish our Central Bank on the CONDITION that they provide interest free loans TO GOVERNMENT for all of society’s infrastructure needs.

THIS CLAUSE STILL EXISTS, BUT HAS NEVER BEEN ENFORCED, but a few brave politicians and lawyers fave initiated a LAWSUIT AGAINST THE FEDERAL GOVERNMENT FOR NOT ENFORCING THIS KEY CLAUSE IN CANADA’S BANK ACT. This is being spearheaded by an organization called C.O.M.E.R. which stands for “The COMMITTEE FOR MONETARY & ECONOMIC REFORM, WHICH NEEDS THE SUPPORT OF TENS OF THOUSANDS OF VOTERS AND CITIZENS, if the lawsuit is to succeed.

So far it has been stalled in the courts, WHY I do not know with certainty, but probably because of banker lobbying.
As famous English statesman Edmund Burke so succinctly put it, “the only thing necessary for EVIL to triumph is that good men do nothing” in other words APATHY, which abounds in Canada.

The question voters are not holding our politicians feet to the fire on is simply this, WHY should private bankers who merely print numbers on pretty pieces of paper make as much profit on our infrastructure as the people who do the actual labour to access the raw materials and the labour for construction? I say that because by birthright the raw materials of the country belong to its citizens collectively. (the bankers don’t own it) so why should we pay TWICE for the infrastructure we need when the government on behalf of the people using our natural resources as collateral COULD directly have the necessary currency printed and tax it back over the anticipated functional life of the assets created without doubling the cost through interest to the private bankers? Can you imagine what a thriving economy we would have IF taxes were reduced by 50% so we would have social credit instead of DEBT?

Bob McGregor reply_all myron martin February 27, 2018

Great summary – and little I can add. However, I was aware of the conspiracy in the formation of the US Federal Reserve in early 1970 [if memory serves me correctly] when an American who had recently left USA and settled in Australia saw my cycle work on markets in a Sydney brokerage and gifted me a copy of Gary Allan’s book “None Dare Call It Conspiracy”. It was the first time I became aware of the US Federal reserve and HOW it had been created in 1913. It is a must read.
Soon after, President Nixon removed the convertibility of the US Dollar to gold [Sovereign country to Sovereign country only]. Thereafter, all currencies became fiat. I’ve been following the gold price ever since and bought my first gold/silver coins when legal in OZ and bought my first significant foray in OZ’s ‘best’ gold share Gold Mines of Kalgoorlie [GMK] when it was 20 cents. It had traded above 2.40 when gold was trading at US$197/oz but tanked to 20 cents when gold crashed to 103.5 which I assessed then to be the bottom, and bought what I could then afford [was building a new house]. Of interest was a report released at that time by a Melbourne Investment Bank named CAPEL COURT. It was a subsidiary of Melbourne’s leading Broker “J B WERE ” which merged with Goldman Sachs sometime later. Capel advised that GMK should liquidate and excess funds should be returned to the shareholders. THIS ADVICE RIGHT AT THE BOTTOM! LATER GMK became NEWMONT after Alan Bond [that convicted crook whose syndicate won the America Yachting Cup] went broke, not long after taking over GMK for OZ$12.50 per share AFTER a 5 for 1 split.!!! So it rose from 20 cents to 62.50 dollars. Even better it paid Oz$6.50 in tax free dividends along the way. Was my third best investment over the past 52 Years? [My target had been 62.50].
I was then writing for World Money Analyst and called an Investment then in GMK as the best thing since the invention of sliced bread. It was about this time that I published my Cycle work/ Risk Model in WMA.
During the late 1970’s/80’s I spoke at many Investment Symposia both in OZ, USA, Mexico and Asia for NCMR [Jim Blanchard’s Conferences] as well as WMA. Additional investments in Local memberships/Floor membership of the then Sydney Futures Exchange, paid off as well; particularly after demutualisation [1999]. Naturally I traded Precious Metal Futures along the way in the first bull market, exiting on the 21st of January, 1980 as gold/silver had met my targets of US$850/50 on the London fix. Effectively I did not re-enter Gold/related investments until 28th October, 2008 when I assessed Gold had bottomed around 674/oz. WHY? Because ALL markets are now rigged by the Central Bankers of the world in concert with the US Federal Reserve, the US President’s Plunge Protection team, the Exchange Stabilisation scheme et al. Of course I’ve been called a Conspiracy Nut but it’s a badge I wear with pride. No other explanation makes sense. How else can one explain the last 100 plus years?
It’s the reason why I believe PHYSICAL Gold & Silver are the best Investments for the coming years for those that don’t want to trade the coming hyperinflation which will destroy ALL fiat currencies.
As for so called crypto – leave me out of them. I’ll leave that to others.
Of interest – why do the promoters of Crypto depict them as “gold coins” – which they are not, currencies [NOT] and speak of ‘Mining’ them. Terms used for mining and producing Precious Metals. To me it smells of the CIA/Deep State creating smoke screens to deviate investments from REAL money – often referred to GOD’S money – PHYSICAL GOLD AND SILVER; the money of the Bible.
It will all end badly for those in debt, margined and believing crypto will be their saviour.

Mark February 26, 2018

What do we say to those with the argument that the electrical energy demands required to handle the ever expanding “Blockchain” technology, on which the successful operation of the scheme is based will soon reach a saturation point at which the energy cost does not justify the operation; and at which time the whole operation may unravel and cause a collapse, even suggesting that in about 2 years or so the energy demand is forecast to be the equivalent of the total electric power demands of the entire country of Japan today. How many nuclear plants will have to be built to support this new form of exchange long-term they argue??

Thomas Patton February 26, 2018

Don’t trust them simply because governments can’t control them thus leaving them open to unfair policies towards them. Doubled my money- sold at $1300- has not not moved above $860 since. (Ethereum)

Robert Gainer February 26, 2018

My concern about the spread of these crypto currencies and blockchain technology is the amount of electricity it takes to mine these “currencies”. I read today that to mine one unit of Bitcoin requires the amount of electricity that is consumed by an average household over 2 years!! Given the growth curve, I have heard that by 2021, this technology will require as much electricity as is available on the planet today! Has anyone else heard these kinds of statistics? How can we keep up with electric demand (remember electric cars and other emerging technologies that will compete for energy)?

dave February 26, 2018

backed buy silver please….

P J Calef February 27, 2018

It will be interesting to see what governments do to try to get taxes in this platform….

Michel Tia reply_all P J Calef February 27, 2018

I am on hand of Martin D. Weiss, Founder, Weiss Ratings and his team.My registration is already confirmed.

linda February 27, 2018

Explain the icx. Don’t understand…thank you.. Also need to know if I should invest in etherum or blockchain?

W. D. Edwards February 27, 2018

The word intrinsic comes from the latin INTRINSICUS meaning inwardly within. Def: Of or relating to the fundamental nature of a thing. Only a silver certificate (no longer in circulation) can really qualify as having intrinsic value because it is expressed as a officially sanctioned representative of a material thing that could be readily exchanged for the actual material. It would seem that good English would demand another term than intrinsic to define the character of crypto currencies. One element that appears to be lacking its the a “store of value”. Can any of these currencies be classified as a “store of value” ? I doubt it. Something that has legitimate store of value is something that is precious , in the eyes of many and readily convertible to effect purchase, and can be accumulated with minimum danger of loss of value by no being subject to the vagaries of outside control.

Joe Slater reply_all W. D. Edwards February 27, 2018

The intrinsic value of the US dollar is that it MUST be accepted as payment in the US. Crypto’s cannot force that. Of course they could, within a particular crypto-verse, but the inhabitants would likely be more fickle than the flesh and blood denizens of this real world.

Joe

Joe Slater February 27, 2018

To be acceptable, a currency must also have a certain stability. Something that could buy you a car one day and a postage stamp the next need not apply. The whole tenor of your pitches to crypto-trade is based on the greater sucker theory. Make no mistake — I agree with the opinion that cryptoC’s are real and will prevail. I just don’t like your approach so far.

Joe

Lawrence Greenapple February 28, 2018

I don’t know anyone who would pay me $10,00 for a Bitcoin. How would I find such a person? How would I demonstrate to this person that I have an authentic Bitcoin?

skipbethea March 1, 2018

Bitcoin pricing would level in 2019 near $8500, if you only consider {$90T proj to 2020)}. As for early-2018, trade GBTC and HODL BTC at current prices (2/28/18). Extrapolate your own Math as Your best advise is your Own!

https://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18

https://coinmarketcap.com/

Robert March 2, 2018

1. Thanks for developing a list of Crypto and Blockchain companies that meet objective criteria along with notes about some the do not.

2. In your personal account using your system whose results are to be made public, to make it realistic you need to remove the $3,500 fee from the $100,000 at the beginning just as any charter member would have to do. Then start out $3,500 in the RED. When this process is applied to your suggested $1,000 account, it needs to make 350% before it breaks even.

3. In reviewing your 7 criteria that are used to evaluate weekly changes in positions, I find that only one is likely to change enough to indicate a change in position. That one is the price and volume – which are an indication of public acceptance. I can’t imagine governance, fees, scaling, versatility, control distribution, risk and reward nor long term adoption changing on a weekly basis.

4. I hope that the publication of your list will make these companies more useful in less of a wild west atmosphere and less of an opportunity for taking advantage of people by the immoral.

Bob

Bob

Bob March 3, 2018

Help for the older generation –

Other than speculation, own crypto coin as a medium of exchange, right? Own a crypto currency so you cay buy things, right?

Other than speculation now, which I understand.

And other than anonymity – the drug dealer or crook wants privacy. And the conspiracy crazy fears government knowing what brand of toilet tissue he uses.

So other than those concerns or goal, I want a crypto coin to buy a coffee – why? The buck works pretty well. So does a credit or bank card.

Other than speculation, of course.

Bette Israel March 26, 2018

what I find confusing is that there are many crypto groups. If everyone uses a different crypto how does that work? Wouldn’t we have to have one main for exchange/ or am I misunderstanding this altogether? thank you