Here Are Some Tips For Navigating Bitcoin Madness

One Bitcoin hedge fund has seen its returns soar 25,000 percent since 2013. The coin itself climbed in value one day last month from $13,000 to $17,000 in 24 hours. And the Winklevoss twins, who once sued Mark Zuckerberg for allegedly stealing the idea for Facebook, jumped in with both feet and quickly became the world’s first Bitcoin billionaires.

If you think the world has gone bananas for Bitcoin, you’re right.

The New York Times just wrote about Pantera Bitcoin Fund, a pioneer in the cryptocurrency  investment space bitcoin that reported those through-the-roof returns to its investors the other day. And, as the Times pointed out, all Pantera had do was buy a bunch of Bitcoin and sit on them while they skyrocketed in value. “Since 2013,” said the report, “the Pantera Bitcoin Fund’s compound annual returns have been around 250 percent.” The Times offered this analogy: “Bitcoin’s moves have been even greater than the movements of Dutch tulip bulb prices back in the 1600s.”

Maya Kosoff in Vanity Fair served up this snapshot of our modern-day tulip-bulb bash: “Though bitcoin’s freewheeling nature has been a contributing factor in its skyrocketing growth, it has also led to missteps, like the 2014 collapse of Mt. Gox, one of bitcoin’s largest exchanges, after it was robbed of more than $470 million worth of bitcoin. The fallout from such incidents has so far been contained among the niche enthusiasts and block-chain hobbyists who hopped the bitcoin train early on. But thanks to bitcoin’s entry into a formalized futures market last week, potential backlash will no longer be limited to a fringe set of investors but will reverberate throughout the economy.”

So what’s a novice investor to do when faced with such terrifying highs and lows on the Bitcoin’s rocky road to ever-greater heights? With the price of a coin perched on Tuesday at $18,255, here are some cautionary tips from some of the hearty souls who have been braving the Bitcoin path (and, no, we’re not making up these names)

read more at mercurynews.com

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