investment

Bitcoinlandia: Where Mythical Investment Grand Slams Are Reality

"For an investor or speculator a 100x return is oftentimes the stuff of legends. Sure, you can get lucky once and maybe even twice. But with the arrival of Bitcoin four years ago a new category of currency was created. And like Babe Ruth ‘calling the shot’ I am finding these investment grand slams are getting more common. The rate at which capital is being created, generated and transferred is astounding. While some people, like Chris Duane, whine about it the wise are knocking in runs to tally points on the scoreboard. So, roll the Q1 and Q2 2013 replays!" Continue reading →

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Bitcoin: how I made a virtual fortune

"I think I probably got the IPO price a bit wrong since the 20,000 shares I listed sold out in a matter of hours. We raised a total of 15,667 Litecoins in exchange for 20% of CipherMine's shares; about £27,700 at current prices. We are in the process of investing that money into more mining hardware, but in the meantime, our share price has continued to rise. As I write this, under a week later, the shares are being actively traded at about 1.6 Litecoins each; double the IPO value. CipherMine's market capitalisation currently stands at roughly 150,000 Litecoins, or about £250,000, of which 64% was mine at IPO." Continue reading →

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Winklevoss Twins File to Launch Bitcoin Exchange-Traded Product

"Here’s one of the more interesting S-1 filings of the year. In a filing with the SEC, the Winklevoss Bitcoin Trust, headed by Cameron and Tyler Winklevoss, said it will sell around $20 million worth of shares, which will each represent a fraction of a single bitcoin, the digital currency the twins have invested in. Bitcoin has become the best known virtual currencies since its release in 2009. The currency was created by a person or group known as Satoshi Nakamoto (whose true identity is unknown) and is primarily used by online merchants, though some mostly smaller brick-and-mortar retailers have recently begun to accept bitcoins for payment." Continue reading →

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A Rare Anomaly in the Gold Market

"So does this mean we should buy now? To be sure, book values fall when precious metals prices decline, and costs have risen substantially since 2001 as well. So it's possible values could fall further. But in that scenario the relationship between stock prices and book value would remain in rarified territory, making the anomaly even more appealing to a contrarian investor." Continue reading →

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Hospital investors ‘sold’ on Obamacare

"Shares of U.S. hospital operators have been on a tear this year, on average posting triple the gains of the broader stock market, as investors tallied up the benefits of President Barack Obama’s healthcare reform. They expect company earnings to strengthen as more Americans gain insurance coverage and hospitals lose less money treating the uninsured. The reform law has spurred consolidation among hospitals, and further merger activity could lift valuations. The biggest benefit from health reform is expected to be an influx of patients whose treatment will be paid for either through expanded Medicaid programs or from state-based exchanges." Continue reading →

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Social Security: Muffling the Warning Bells

"It had to 'cover benefit payments, forcing the agency to tap its $2.7 trillion trust fund sooner than some had expected.' But how did it tap this Trust Fund? By selling assets. What assets? IOUs from the Treasury. Where did the Treasury get the money to pay the S.S.A.? From the general fund. Where did the general fund get this money? By borrowing it. Where will the Treasury get the money to pay this interest? From the general fund. Where will the general fund get it? Borrowing. When the agency says 'shortages of tax revenue,' it refers to FICA tax revenue. But there is also a shortage of tax revenues in the general fund. That is why there is an annual deficit." Continue reading →

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$80 Billion Bond Funds Sell-Off in June

"Mortgage rates have soared. The days of the 3.5% 30-year mortgage are over. The bond market has been rigged by the FED. Everyone knows this. A handful of economists decide what rates should be. Investors went along with this. But Bernanke’s remarks persuaded them that the rigging will be reduced. So, they started selling their fixed-rate securities. This is what happens when the decisions of a handful of salaried economists to inflate the currency are substituted for the decisions of investors. The economists giveth, and then their #1 spokesman threatens to taketh away. Investors then scramble for the exits." Continue reading →

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How a total n00b mined $700 in bitcoins

"There is a whirring, whining presence in my dining room. I notice it every time I walk through. Every day, it sucks down about one full kilowatt-hour of electricity. In a year, it will consume almost $100 worth of juice—and that's on top of the $274 it costs to buy the box in the first place. Oh, and it's hot, too. If I moved it into my office and could stand the noise, I could keep a cup of coffee comfortably warm on top of the thing. Why on earth would anyone want such a disagreeable little machine in their home? The short answer: every day, that machine magically generates something like $20 in bitcoins." Continue reading →

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‘Pawn Stars’ Owner: Selling Personal Gold At A Loss For Tax Writeoff, Then Buying Back

"Harrison noted that while gold is plunging on the commodities exchanges, he's finding it difficult to build an inventory for his shop. 'I retail gold and silver and I'm having a real difficult time right now getting physical metal,' he explained. 'It's the crazy world about gold and silver: Sometimes the paper market is going down but you can't find actual physical items.' The reason, he said, was a lack of physical product, which he blamed on private and government mints not keeping up with demand. But this same phenomenon should help prices see a bottom shortly. 'I still pay right around spot — I don't think it's going to go much lower,' Harrison said." Continue reading →

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