Skip to main content

Day 1

My son shared his observation of and enthusiasm about Bitcoin’s rise in value with me earlier this year.  I told him what little I knew about Bitcoin, and how a few years before, I had come close to testing the waters by buying some.  But I didn’t.  I didn’t understand it.  It wasn’t easy to buy.  I forgot about it.  He urged me to reconsider—immediately.  So, I did what I often do—I dragged my feet and did a bit of research.

It did not seem to be much easier to buy Bitcoin nowadays, but I learned that there were do-it-yourselfers mining Bitcoin.  I was intrigued.  I did a bit of research.  I learned that DIY mining was quickly being taken over by corporations and networks of professional miners, and concluded that DIY mining's potential seemed low and the learning curve seemed high.  Nonetheless, I was encouraged that even publicly-traded firms had taken notice and were making investments in Bitcoin.

I found information about blockchains and cryptocurrencies, the technologies that underlie Bitcoin.  Those, in turn, helped me appreciate these technologies' potential impact on commerce.  I am about as far away as you can get from being an expert, but I learned enough to understand the growing interest in Bitcoin and cryptocurrency.  I concluded that Bitcoin or something like it (Ether, Litecoin, Ripple, etc.) will likely transform digital transactions worldwide—and not just financial transactions.

The most practical thing I learned along the way is that there is an exchange traded security, Greyscale's Bitcoin Investment Trust (GBTC), that invests in Bitcoin-related assets (at least that’s what I tell myself—I’ve only done rudimentary research). Whatever the assets, the price per share has grown considerably since I learned of it in the spring of 2017.  The price then was barely $400.  As of mid-December 2017, the price is well over $2,000.  So, I decided to double my stake and blog about it.  I will monitor the price of GBTC, pay attention to Bitcoin and cryptocurrency related information, and update this blog accordingly.


Popular posts from this blog

Day 3

GBTC opened yesterday at $2,360 and closed yesterday at $2,374.  I expected, or at least hoped for, a decline so that I could buy more.  Instead, it jumped to more than $2,500 within an hour of opening, and closed above $2,700.  Somewhere along the line, I read about Overstock's (OSTK), the online retailer, attempt to pivot their business around blockchain and cryptocurrency.  It was trading around $68, so instead of more GBTC, I opted for OSTK.  I did not look much at their plans or financials--being an early adopter of cryptocurrency and an online retailer that competes daily against Amazon was enough for me.  I simply rolled the dice.  I estimated that it could be no worse than picking Stratasys in 2013 in anticipation of the 3D printing revolution.

Day 10

Yesterday I learned of another company that is remaking itself.  BiOptix Diagnostics (BIOP) is now Riot Blockchain (RIOT).  Its new focus is blockchain and cryptocurrency.   Heretofore it was known for its development of proprietary (ESPR) enhanced surface plasmon resonance platforms for molecular detection (which is related to nanomaterials enhanced surface plasmon resonance for biological and chemical sensing applications), which probably leveraged the work of Dr John Hall, Physicist and Nobel laureate.  It will license its legacy biotech assets, and dive directly into the blockchain and cryptocurrency realms.  RIOT's first big step is the purchase of Canadian-based TESS, Inc., which has expertise in building guaranteed payment systems for wholesale telecommunication carriers (e.g., “smart contracts”).  Their second step was announced in November: they will mine cryptocurencies.  In short, I bought using the same rationale that I used for OSTK.