Bitcoin Price Drop- Is now the time to buy??

WhyTheFace

Hi,

Reading this article today about the spurned FB twins, the Winkelboss brothers and their attempts to set up a bitcoin exchange, I discovered bitcoin has fallen from $1,200 to $234 per coin in the past year or so.

Would it be worth buying 10 of these and holding onto them til the price is right?

nxbyveromdwjpg

Yes, probably.

Bit Licence means exchanges will spring up in the USA, bringing USA acceptance and investment. Seems likely to go back up from here.

alb

Bitcoin has been a bear market for over a year after the temporary $1000+ spike in late 2013.

The fundamentals however still looks good, the number of transactions per day has been rising, hitting an all-time high of 115,000 8 days ago. Bigger merchants and payment companies have been getting involved - Stripe, Braintree (Paypal) and Microsft. The mining hashrate is at a healthy level, the venture capital invested in Bitcoin companies in 2014 was $314.7m up from $94m the previous year.

Already in 2015, Coinbase raised 75m of funding, interestingly the source of the funding included legacy financial institutions such as the New York Stock Exchange, USAA and BBVA. As nm said, the forthcoming NY bit-license regulation will pave the way for more innovation in the US in this regard.

In summary, the Bitcoin ecosystem has been growing, the price has been declining - something will have to give, one way or the other.

Personally, I think the bottom may already be in, but there's a good chance it revisits sub-$200 but probably not sub-$100, but what do I know!

If you are thinking about buying for speculation purposes I would suggest having a timeline of at least 1.5 years. The block reward is currently scheduled to half in mid-2016, (though it might take longer) which could make for the perfect storm for another big rally if the ecosystem continues to develop.

Of course, as a Bitcoin enthusiast, I would say that when it comes time to sell Bitcoin, there will be no need to

(Also, before buying, please ensure you are aware of how to store your coins securely or aware of the counterparty risk you take on if you choose to deposit them with a 3rd party.)

Bateman

http://www.etf.com/sections/winklevoss-bitcoins-are-%E2%80%98better-gold%E2%80%99?utm_source=newsletter&utm_medium=email&utm_campaign=dailynewsletter

You've got to hand it to them, they know the main obstacle is "bringing it to the people" so to speak. And they seem determined to do the necessary to make sure that happens.

spideog7

Bateman wrote: »

http://www.etf.com/sections/winklevoss-bitcoins-are-%E2%80%98better-gold%E2%80%99?utm_source=newsletter&utm_medium=email&utm_campaign=dailynewsletter

You've got to hand it to them, they know the main obstacle is "bringing it to the people" so to speak. And they seem determined to do the necessary to make sure that happens.

Surely holding bitcoin in an ETF defeats the entire purpose of bitcoin?!

alb

spideog7 wrote: »

Surely holding bitcoin in an ETF defeats the entire purpose of bitcoin?!

On the face of it, yes. It's taking on counterparty risk. Of course many gold stackers would say the same about paper gold but the GLD ETF gets customers none the less.

I think the real importance is that in the US if you wanted to have a bit of exposure to Bitcoin in your 401k pension you currently cannot easily do it (at least this is my understanding, I'm not an expert). Something like the COIN ETF would provide an official vehicle making this possible, and thus opening up a tax-friendly way for more people to 'invest' in Bitcoin.

Bateman

Absolutely, it’s not a play that goes to the heart of what BTC is actually all about. It’s purely about accessibility.