First Stage Investor

Keeping Up With the Bitcoin Boom

Keeping Up With the Bitcoin Boom
By Adam Sharp
Date August 31, 2017

A note from the Managing Editor: As promised, this week marks the launch of a brand-new benefit for First Stage Investor subscribers.

Starting today, you will begin receiving the Weekly Update every Thursday. Because the Weekly Update is an exclusive benefit for subscribers, it will provide insights and updates that relate directly to the monthly issues of First Stage Investor.

That includes private early-stage startup equity and cryptocurrencies such as bitcoin.

As we announced last week…

The Weekly Update will provide a steady diet of portfolio updates, timely market and industry insights, and specific startup recommendations that we want to provide ahead of our monthly issues.

Bottom line: We expect the First Stage Investor Weekly Update to become an invaluable resource for all of our subscribers. Things move quickly in the world of early-stage investing, and we want to make sure you are updated each and every week.

So let’s get started!

Bitcoin and other cryptocurrencies are on fire right now. Prices have been going through the roof since we added cryptocurrencies to our portfolio back on August 8.

As I write this, three of our cryptocurrency holdings have moved up:

  • Bitcoin is up 34%.
  • Ethereum is up 36%.
  • Litecoin is up 31%.

No other asset class in the world has the potential to rise in price as much as cryptocurrencies, and bitcoin is still king of that world for now. I believe the price could eventually surpass $1 million per coin.

Even with the rising prices, it’s important to realize that you have not “missed the boat” if you don’t own any yet.

Today, only a few million people own any cryptocurrency at all. If it becomes widely adopted as a store of value and/or currency, today’s prices will look dirt-cheap in comparison.

(If you haven’t already, check out one of my initial research reports on bitcoin and cryptocurrencies here: “How to Become the Next Bitcoin Millionaire.”)

I also understand why some people are wary of bitcoin and other cryptocurrencies.

Every day, Andy and I get emails from subscribers with all kinds of questions about bitcoin and other cryptocurrencies. (We love all the questions!)

Today I want to address some of those.

Q:   I have been reading the articles on bitcoin and Ethereum. But I want to know, is it legal? – Thomas C.

A:   Thanks for writing in, Thomas. Bitcoin and other cryptocurrencies are 100% legal to purchase and own. They are considered a decentralized currency (i.e., not regulated by the government), but they are completely legal. Check out a recent post I wrote on bitcoin that will help explain it.

Q:   I’m ready to buy bitcoin, but need some guidance on security measures. Any recommendations? – CT

A:   Hi, CT. It’s worth taking the small amount of time to properly secure your accounts. Eventually you will want to move your coins off Coinbase and Bittrex. When your coins are on an exchange, you don’t have the private keys – the brokerage does. And your private key is what ultimately determines ownership.

You’ll want to take ownership of your coins eventually. The best option for many people is a hardware wallet. This is a small device that connects to computers via USB.

The nice thing about a hardware wallet is that your coins won’t be connected to the internet. They’ll be in cold storage (held in an offline environment).

Keep a copy of your private keys somewhere else, somewhere very safe. Your private keys are everything. Print them out, or make sure you write them down correctly, and have someone else double-check them. Then check them again.

Take a look at some more recommendations I have for security measures here.

Remember, with bitcoin and cryptocurrencies, we’re in the first inning. Perhaps 1% of Americans own any at all. Crypto today is where cellphones were in 1992. But adoption is growing fast.

Here’s how bitcoin grows (and has grown) exponentially: As more people make money off bitcoin, they tell more of their friends about it. They talk about it on TV. It makes the news.

More people get interested and eventually become comfortable enough to invest. Then the cycle repeats again and again.

We will be here to help and guide you every step of the way.

If you haven’t already, be sure to check out my two research reports on cryptocurrencies:

Good investing,

Adam Sharp
Founder, First Stage Investor

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