Friday, July 4, 2014

Bitcoin Summer 2014 - Stability and Good Expectations

For those unlucky enough to buy Bitcoin at $1000 per coin last year, the last 7 months have been difficult times. The price has traded as low as the mid 300's briefly. Between poor regulatory climates in a number of foreign countries and the collapse of MtGox, there has been a lot of negative news.
On the bright side, the tremendous level of venture capital and innovation pouring into development of the Bitcoin ecosystem has continued and even accelerated. The price of Bitcoin has stabilized and has shown steady improvement. The recent US Government auction of seized Bitcoin went very well, leaving a large unmet demand for Bitcoin investors. In the next few months, we can expect Bitcoin investment vehicles to be trading on NASDAQ or even NYSE. I predict significant price appreciation in the next 3 months. (I have been wrong before, invest at your own risk)

Chart since November 2013

Saturday, January 4, 2014

Bitcoin Climbing High Again

Bitcoin is on a steady 5 day climb. At this rate it will be back at $1000 next week. If you haven't got in yet, you may want to wait for the next drop or you could ride the wave and see where it takes you.

This chart is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Link to Chart

Wednesday, January 1, 2014

How to Safely and Securely Store Bitcoins - Cold Storage

You should never store Bitcoins in an online account or on an internet connected device. Think of those things as your wallet. You keep a few bucks there but not your net worth. The reason is that a physical wallet can be easily lost or stolen. In a similar fashion, when you keep Bitcoins in an internet connected account, computer, or mobile phone, they can easily be lost or stolen.

Obviously, using unique and difficult to guess passwords as well as two factor authentication will improve the security of your online account or Bitcoin wallet. The most secure method, however, is cold storage.

Cold storage is when your Bitcoins are stored in such a way that they are completely inaccessible to hackers. There are 2 ways to keep Bitcoins in cold storage. One is to transfer the Bitcoins to a Bitcoin wallet that is not connected to the internet. A flash drive could be used for this or an old computer that is not connected to a network. The 2nd way is to transfer the Bitcoins to a paper wallet.

A paper wallet is a piece of paper with a Bitcoin account and private key written on it. If your Bitcoins are stored on a physical paper wallet, the only way to get the Bitcoins is for a thief to physically see the wallet. As long as you keep the wallet hidden, it is completely secure. A paper wallet can also be password protected so that even if the paper wallet is stolen, the thief can not access your funds. You could continue to access your funds as long as you have a copy of the paper wallet.

The easiest way to print a paper wallet is to go to and click on paper wallet and print it. Make sure to make a copy of your wallet. If your paper wallet is lost or destroyed, you will NEVER be able to access your Bitcoins. They will be lost.