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The New Gold Rush

I pride myself in staying up to date on most cutting edge digital happenings and seeing trends at the outset. I have to say I missed this one.I was reading about Bitcoins in The Harvard Business review on a flight back from the East Coast and found it fascinating. Once back I then did some deep investigating, Bitcoins were started 4 years ago by someone unknown as an alternate currency not backed by any government and now have EXPLODED in value. The article I was reading not even a week off the press indicated the price shot from under $5 per Bitcoin last year to over $80! That was on Sunday.

Well guess what…at current press time of this the price yesterday 4-10-13 hit $260 and then was pulled way back to $150 all within a few short hours! All due to a series of DDOS attacks and heavy market manipulation.

A good explanation came from a longtime friend and Silicon Valley insider, his text read…

“Yea…Crazy couple days…a lot of sites in the ecosystem are being DDOS’ed (exchanges, chart sites, even forums)… the major exchange which does 80% of the trades is not ready for prime time. “Someone” is trying to torpedo the price with tons of sell high-frequency trades at 0.00001 shares, which is causing the major drop in price. They have poor market making functionality. Luckily, another, better exchange, with better market making engine is coming on soon. For sure, the weak link in Bitcoins is the market making exchanges. They weren’t properly engineered”

A current glance on ebay showed prices as high as $300 per Bitcoin with Multiple bids. Mining rigs are all sold out and people are reselling the contracts and orders for up to $50,000!  Like this one

I needed to dig deeper so I started investigating the overall market, competitors, acceptance etc. and let me tell you there is some HUGE opportunity here. About 200 or so merchants currently accept Bitcoins, including Bars & restaurant like this one in NYC. I forecast in the next 2 years you will be able to buy everything with Bitcoins from cars to homes. To test this theory I am going to put my Hummer, which I seldom use up for sale this week with the only payment accepted being Bitcoins. I will update what happens.

Want to learn more about Bitcoins? Well here’s the best part…

I did all the work for you all you need to do is follow these links and you will be up to speed in a couple of hours.

There is also a “silver” competitor called Litecoins. You can mine them as well and trade them for Bitcoins. Spend some time looking into this…there’s some gold in those computers!

Thinking about day trading it?  Well, it’s not for the faint of heart… Check out this graph showing just one day of it’s volatility!

daytrade bitcoins

  • Last price: $177.65999
  • High: $266.00000
  • Low: $105.00000

Since then, trading is now haulted for 12 hours at $120.000 Hang on for the ride…

This guest post is brought to you by the brilliant mind at The Click Father.

4 thoughts on “The New Gold Rush

  1. I bought some well over a year ago, I think I spent $100, I had forgotten I had them. I checked around and just “traded” them for a new MacBook. Yikes! This could be good.

    – Mike

  2. I had heard about Bitcoins back when they came out, but never looked too deeply into it.

    I’m going to start checking this out. ESPECIALLY knowing that I can invest/trade…that sounds like awesomeness to me. 😀

  3. Thanks for the marvelous posting! I really enjoyed
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    and definitely will come back later in life.
    I want to encourage continue your great posts, have a nice evening!

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