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Love it or Hate it Bitcoin is Here to Stay

Mobile Money is the Way of the Future!

Is Hedging Your Bets on Bitcoin the Right Idea?

Bitcoin has proven to be the bête noir of some and the darling investment for others. Never before has such an intangible asset evoked as much desire and animus from investors. Bitcoin captivated the attention of the world several years ago, but its meteoric rise to fame and fortune was tempered by its sudden and dramatic fall from grace. There are many investors out there who refuse to be dissuaded from the potential of virtual currency and its many possibilities in the new age.

Even if Bitcoin is regarded as risky, there is far more to be gained by going long on it than there is to be lost. Virtual currency or cryptocurrency is indeed fast gaining traction in a world where anonymity, cybersecurity and the integrity of personal information takes priority. Even with the questionable actions of Bitcoin execs and money launderers, cryptocurrency has retained its shine in the eyes of investors and IT aficionados.

Consider for a moment that Bitcoin started out at $0.07 per coin and spiked to a high of $1,166 per coin towards the end of 2013. Almost 2 years later, Bitcoin is now trading at $230 per coin and holding strong. As part and parcel of the evolution of the world wide web, Bitcoin has a long ways to go yet and it is precisely for that reason that such incredible investment potential awaits traders and investors. As the online payments evolution results in better apps and enhanced payments options, so too will Bitcoin be worked into these mobile payments solutions. Things like international remittances and micropayments are continually evolving. And these types of innovations are not mere lip service to a burgeoning industry: countries like Kenya are heavily reliant on mobile technology for their GDP growth. Even if Bitcoin ends up running out of steam, digital currencies will continue to remain intact. In fact, the future of digital currencies is all but assured.

Making Money Trading Bitcoin

Since Bitcoins are purchased in any number of ways, they are easy to trade. Telephonic exchange remains one of the most popular methods. The total value of Bitcoin startups runs into billions of dollars. There are even investment options known as Bitcoin derivatives, Bitcoin startups and myriad forward contracts for investors to delve into. With over 70 electronic trading options available to Bitcoin investors, trading any number of currencies is easily done. It is difficult to assess the total value of the Bitcoin market, since it is completely decentralized.

As far as individual currencies go, USD Bitcoin trades account for 48% of total volume, the EUR accounts for 6% of all traded Bitcoins, and the CNY makes up 33% of traded Bitcoins. Becoming a trading venue for Bitcoin is relatively easy. So many exchanges and wannabe exchanges take the form of servers operating from households or basements. The NYSE determines Bitcoin prices by using algorithmic codes. The price is released at 16:00 GMT daily. It is then sent by way of the Global Index Feed to operators globally.

The trade in Bitcoin is similar to trading fiat currencies. In fact the similarity between Bitcoin traders and Forex traders is uncanny. The use of technical analysis remains popular among Bitcoin traders, but it’s in the fundamental analysis that differences crop up. Another interesting point about Bitcoin interest is that it runs at over 38% per annum – pretty impressive for a non-entity! 



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