Crypto & Its Market News

To be sure, mine is not the first column to suggest that a bitcoin BTCUSD, -4.11%  crash is imminent, especially as bitcoin’s price tops $10,000. But you may not realize just how high the probability of a crash has become. The reason of a crash’s probability is a recent study of what has happened on prior occasions when an asset’s price has skyrocketed. Bitcoin’s extraordinary price run-up far exceeds the threshold for when a crash becomes nearly certain. This study, titled “Bubbles for Fama,” was published earlier this year by the National Bureau of Economic Research. Its authors are Robin Greenwood, a finance and banking professor at Harvard Business School and chair of its Behavioral Finance and Financial Stability project; Andrei Shleifer, an economics professor at Harvard University; and Yang You, a Ph.D. candidate at that institution. The researchers defined a bubble as a sharp price run-up over a two-year followed by at least a 40% drop over the subsequent two ye...

Teenage bitcoin millionaire Erik Finman, 19, has advice for young people looking to invest in the cryptocurrency: "Find what you're good at, and find a way to make money doing it." "This is crucial for young people," he writes on Twitter. "Establishing an extra stream of income will allow you to start investing earlier." TWEET Finman currently owns 401 bitcoins, which he confirmed with CNBC Make It, or over $4.4 million at the rate of $11,182 a coin. The teenager began investing in bitcoin in May 2011, after receiving a $1,000 gift from his grandmother at age 12. Finman tells Forbes that his knack for politics is actually what got him interested in bitcoin initially. "[I] saw this as an incredible way to transcend the financial system including Wall Street," he tells the magazine. However, notable financial experts like Warren Buffett have warned against investing in bitcoin. "In terms of cryptocurrencies, generally, I ca...

Top 5 Bitcoin Myths and the Truth Behind The Lies Many times I’ll run into people new to the idea of Bitcoin and they have heard some mainstream news program or some random person confuse them about Bitcoin. These include common half-truths, ignorance, or fully erroneous news passed off as facts on how Bitcoin works. A s a public service, here are five common misconceptions, or myths , about Bitcoin and things you can retort if you are ever to meet a walking fountain of misinformation. (This list is really much longer than five myths, and may be amended in the future.) Bitcoin Myth #1: Bitcoin doesn’t do anything the other coins can’t do. It’s nothing special. Bitcoin is the original crypto-currency, so the “ Altcoins ” are many times derivatives of Bitcoin or offshoots of its blockchain. It may not even be possible to buy an alt coin without buying Bitcoin, so it acts as a global reserve currency for decentralized digital currency. Bitcoin is held to just 21 million coi...