A lot of money is flowing into the digital currency market, and certain exchanges such as Bitfinex, Bittrex and Coinbase are having a hard time keeping up with all the orders.
Bitfinex has quickly implemented deposit fees for deposits under $1,000, and withdrawal minimums of $250 or more. They’ve also increased the confirmations required for deposits, for example, Dash deposits now require 9 confirmations instead of 6, and sometimes even when the 9 confirmations are reached, the funds are still not available. Withdrawals can now take 24 hours to process – a long time to sit and sweat wondering if your money will ever come out.
Perhaps these are just symptoms of a market expanding, with infrastructure not fit to deal with increasing demand. However, it’s possible that they’re indications of greater problems. When it comes to money, it doesn’t hurt to be careful.
The Story: Why to sell cryptocurrency when the price is exploding
Bitcoin is over $9000 USD and people are going bananas. In cryptocurrency discussion groups, there are rumours that mass adoption is finally taking hold, that everyone’s grandma is buying BTC, or even that the dollar is crashing against Bitcoin. Meanwhile, using cryptocurrency remains more difficult than programming a VCR, and addresses continue to look like computer errors. Mainstream interest has piqued, but as long as the user experience remains poor, mass adoption is unlikely.
Nevertheless, people in the community are going crazy over the rise in price. It’s tempting to believe it will go up forever, a mistake many have made in markets and paid dearly for it. The longer the mania over the price continues, the more likely a correction – but nobody can say exactly when, how, or how much.
As many have made small (or large) fortunes in this market, and people are so hyped, that’s a sign that now is the time to be prudent, and to consider how much of your net worth you really want to have sitting in volatile space age Internet nerd money. Times like these can be good to put some money into more stable assets, such as cash, or perhaps precious metals. Selling small amounts at a time means you can be adaptive to changing market conditions – remaining open to selling more if the price keeps going up, and having the chance to buy if the price slips.
Life is about risk management. You can’t make the perfect move, but you can be flexible enough to prepare for different scenarios, and you certainly can be humble enough to see the possibility of different scenarios. Nobody knows how high Bitcoin or other cryptos will go, and nobody knows when it will crash. Accounting for the lack of knowledge is the beginning of wisdom.
Disclaimer: Nothing in this article or video is intended to be financial advice. I don’t want to tell you what to do with your money and I don’t know what you should do with your money.
The Story: The dream of cryptocurrency and what to do about it
Most people hear the word “Bitcoin”, they don’t think much of it, or they think only about drug markets on shady parts of the web. Bitcoin, Dash and digital currency in general are similar to the Internet itself in some ways. If you can think back to 1995, you might remember people saying how the Internet was full of paedophiles, pornography and other undesireable material – a place for nerd and perverts, but certainly not for regular people. Today, almost everyone who has the resources to access the Internet uses it on a regular basis, from shopkeepers in London to monks in rural Thailand. A technology which was once only for a few, quickly became a necessity for everyone.
Free digital currency – currency not controlled by any government – may be the greatest breakthrough in monetary technology since coins were first minted. However, just as with the Internet, the benefits are not obvious to most, unless they have a need to escape the restrictions of normal money. Farmers in Argentina use these currencies to escape the will of banks telling them how to grow and what to grow. Activist organisations such as Wikileaks use it to accept payments when governments try to block them. Impoverished Venezuelans use it to smuggle in food to feed their families, as the national currency collapses before their eyes. If you want to send money across the world cheaply, or to find a way to save money so it isn’t eroded by inflation, or you have a desire to see a better world where everyone has a chance to live comfortably, could a currency such as Dash or Bitcoin help you?
In this episode, Kurt discusses the dream, the highest ideals of digital currency – ending war and providing a means for the masses to escape poverty and reach prosperity, removing power from central banks and holding governments accountable to the public they are supposed to serve. He also gives an overview of how to acquire Dash or Bitcoin, some pitfalls to avoid losing your money, and some ways you can earn this currency.
Join us in an industry-disrupting episode of … The Paradise Paradox!
Disclaimer: Nothing in this video or podcast is to be construed as financial advice.
The Story: The prices of digital currencies are going crazy
In late 2013, the price of Bitcoin started exploding, going from around $120, to close to $1200, within 3 months. People in the digital currency realm were stunned and amazed, and many people (including myself) started buying up currencies, chasing the Bitcoin bullet train. “This time it’s different,” we thought. “Who knows if the price will ever come down?” we thought. A few months later, the price came rolling down, eventually settling around $450. A lot of people surely lost a lot of money in those months, buying high and selling low. That was when I learned a simple lesson: the best time to buy an asset is when nobody gives a shit about it.
Now it’s June 2017, and in the past three months we’ve seen Bitcoin shoot up from around $1000 to more than $2500 – even to $3000 in some markets. I see people on social media boasting about their winnings, parading the fact that they have assets worth hacking. I tell them to be careful, that trading at all time highs can be a recipe for disaster. They tell me “The dollar is crashing against crypto!” and “This time it’s different!” I know some will probably lose a lot when the bull market ends, still believing that they’re digital currency genii and know how to pick winners. Others will prudently and consistently take profits, and wait for another opportunity to buy big.
In this episode, I welcome back Luis Fernando Mises, business consultant, entrepreneur, spiritual healer and digital currency investor, to discuss the latest rise in Bitcoin and altcoins, and what pitfalls people should look out for. We talk about ease of use in virtual currency, potential problems with Bitcoin, and spiritual perspectives to be gained when you lose a lot of money. We also discuss the problems with gossip in the liberty movement, how many are focused on the “telenovela” of liberty, and how that energy can be directed into something more fulfilling.
Join us on another bank-breaking episode of … The Paradise Paradox!