Bitxchange

The value of bitcoin hit an all-time high of nearly $20,000 in December 2017. Less than a year later, however, its value has dropped to about $6,400, according to digital-currency website CoinDesk, whose Bitcoin Price Index tracks prices from several key exchanges.

Still, even though bitcoin is worth a lot less today than it was at its peak, if you invested $1,000 five years ago, you would have made a profit.While the value of one bitcoin hit highs of around $1,000 and lows below $600 during December 2013, when the cryptocurrency began to go mainstream, it hovered around $1,000 early in the month.

A bitcoin purchased at $1,000 would be worth about $6,400 Thursday, or over six times as much, and your total gain would be over $5,000.


This estimate does not include any additional fees or transaction costs.If you bought bitcoin at its high near $20,000, $15,000, or even at $10,000, though, you would have lost money: around $13,600, $8,600 or $3,600, respectively.




CoinDesk: Bitcoin Price Index from Oct. 25, 2013, to Oct. 25, 2018Volatility is pretty common for cryptocurrencies. Ethereum, once valued near $1,300, according to digital-currency tracker coinmarketcap, is now hovering around $200. Digital currencies XRP and Litecoin have seen similar declines.

That's part of the reason seasoned investors say to use caution when approaching crypto.Billionaire entrepreneur Mark Cuban and "Oracle of Omaha" Warren Buffett, for example, have both warned that bitcoin's value is unstable.

Legendary investor and Vanguard founder Jack Bogle, at a Council on Foreign Relations event, told the audience, "Avoid bitcoin like the plague.

""Bitcoin has no underlying rate of return," he said. "You know bonds have an interest coupon, stocks have earnings and dividends, [and] gold has nothing. There is nothing to support bitcoin, except the hope that you will sell it to someone for more than you paid for it.

"More recently, at a congressional hearing on Capitol Hill, global economist and New York University professor Nouriel Roubini said, "Crypto is the mother or father of all scams and bubbles.

" He called out "swindlers" who tapped into investors' fear of missing out and took them for a ride with "crappy assets that went into a bust and crash — in a matter of months — like you have not seen in any history of financial bubbles.

"If you are considering investing in cryptocurrencies, think of it like a trip to Vegas, self-made millionaire and best-selling author Tony Robbins suggests. In his own portfolio, Robbins directs a certain amount of money to risky ventures, but he doesn't rely on them to work out.

For those investments, he said, "I know it is just for fun I'm investing, I know I could lose."Like this story? Like CNBC Make It on Facebook!

Bitcoin may be the fraud of the century, depending on whom you believe, or it could be a gold mine for early adopters.

Adventurous investors have already bought into the virtual currency and Wall Street is laying the groundwork for more wealth to flow into the cryptocurrency.

But nobody can say how big (or small) the bitcoin story will ultimately become.
Bitcoin still cannot be used to buy even a loaf of bread. It cannot be purchased from a company or sold directly on a major financial exchange and it is backed by no central bank. And it also dissimilar to metals like gold or silver, with universally accepted value.

Yet bitcoin is exchanged like money. Near the end of 2017, bitcoin reached almost $20,000 in value amid a buying frenzy. It has since come down closer to earth and is now worth around $6,400.Such volatility is too nerve-wracking for most mainstream investors but the radical price swings hold appeal for short-term traders.

True believers in the currency, along with these short-term speculators, now have a variety of investment opportunities at various risk levels.- Debut on major exchange -The most direct way to buy bitcoin is on an exchange that specializes in cryptocurrencies, although many of those platforms are at risk of hacking.

In late 2017, the Chicago Board Options Exchange became the first major exchange to offer a bitcoin product, a move that gave a legitimacy to the currency.

The Chicago exchange allowed trading on bitcoin futures -- not on bitcoin itself -- a financial instrument well known among investment professionals.

Another option is to pick an investment vehicle composed of bitcoin, such as the Bitcoin Investment Trust, which is managed by Grayscale Investments. But those interested in such ventures must transact in a private and bilateral basis and typically pay high fees.

Bitcoin believers are still awaiting the green light from regulators for exchange traded funds(ETF) that would track the movements of the virtual currency, a key step that could take the market more mainstream.

"The arrival of a potential bitcoin ETF remains top-of-mind for institutional investors seeking exposure to this emerging asset class," said Michael Graham, an analyst specializing in Internet, blockchain and digital assets at Canaccord Genuity.

Yet many pension funds and other mainstream investors are likely to think twice before putting big funds into ventures that could soar -- but could also sink.The US Securities and Exchange Commission has rejected several proposed ETFs, including twice blocking ETFs proposed by the twin Internet entrepreneurs Cameron and Tyler Winklevoss.

Each time, the SEC expressed concerns about fraud and manipulation, in part because it is still exchanged primarily on unregulated exchanges.- Broadening acceptance?

-Most of the biggest names in finance are at least studying ways to participate in bitcoin, although the steps so far have been incremental.

Jamie Dimon, chief executive of JPMorgan Chase, the biggest US bank by assets, famously called bitcoin a "fraud" in 2017 and has continued to speak skeptically of it.

Since May, Goldman Sachs has served as a clearinghouse for trading bitcoin futures for clients but has not offered bitcoin investments yet.

But Fidelity Investments, the giant money manager, this month unveiled a new venture, Fidelity Digital Assets, that will execute trades in digital currency for clients and permit them to store bitcoin or other digital assets with Fidelity.

And ICE, the parent company of the New York Stock Exchange, plans to launch its own bitcoin futures contract in November.

Bitcoin platforms continue to have a variety of problems, including lack of transparency, conflicts of interest and weak system safeguards, Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission, said in a mid-October interview on Fox Business.

"Like all things, it takes time to mature, and with the movement of more institutional investors into the space, I think we'll see that maturation," Giancarlo said.

Bockhain entrepreneur and industry advisor Vinny Lingham told Cointelegraph in an interview Oct. 21 that cryptocurrency prices will surge again, but it will take some time.Speaking with CT during the Money20/20 conference Sunday. 

Lingham – also the CEO of Blockchain identity startup Civic – stated that cryptocurrency markets need time to regain previous volumes, arguing that the market’s priorities have shifted:

“Now the world is waiting for utility, when people will actually start to use the cryptocurrencies.

”Lingham also said that governments globally are poised to push back against Bitcoin (BTC), as “it threatens their ability to make money.

”The investor also added that central bank-issued cryptocurrencies are imminent:“Every country will issue their own cryptocurrencies. Many countries will. And that will become interesting. And that is going to happen.”

“Sometimes it’s just simple as time,” Lingham concluded the interview.

Back in June 2017, Lingham had made a statement that Bitcoin was “better money” than Ethereum (ETH).

In May 2017, Lingham, made a similar prediction to this week’s, asking the crypto community “to be patient” for Bitcoin’s price to grow – which it subsequently did manyfold.