Last year, Bitcoin received nearly $ 20,000 – everywhere was reading about the new digital (money) era and predicting swift price increases of up to $ 100,000.

If you look at the latest news, you will find that almost exclusively negative reports are made about Crypto-currencies like Bitcoin. What happened to similar developments in the past? And should traders really keep their fingers off the digital currency, or can investment be worthwhile?

Current reports are reminiscent of the 2008 financial crisis

On closer inspection, it can be seen that news – and public opinion in general – is often “pro-cyclical”: when prices are high, it is advised to continue buying. On the other hand, it is recommended to sell in falling markets.

How wrong this approach is, for example during the financial crisis in 2008 showed: At that time, the US Dow Jones index has fallen below 7,000 points. Even at this time, the media reported only negatively on the stock markets. Overall, the reporting from then strongly resembles the messages that can be read at the moment about the Bitcoin. ... 

Anonymous, secure, super fast transactions – Crypto-currencies like Bitcoin, Ethereum or Ripple fascinate as an alternative, which is only possible through the underlying blockchain technology .

Its decentralized structure overcomes classical boundaries. So transactions in a network run directly from computer to computer. They are logged throughout the network. Who is behind it is unknown.

For Buffett, Bitcoin’s rat poison

While many talk about “currencies and payment systems of the future”, star investor Warren Buffett is not very good at Bitcoin. He recently repeated this at the shareholder meeting of his investment firm Berkshire Hathaway .

Buffett considers the Bitcoin hype to be a speculative bubble and says, “It must inevitably lead to a nasty end.” He spoke of unproductive fortune that attracts charlatans and does not create value. In a subsequent TV interview, he added, “Bitcoin buying follows the bigger fool’s theory, it’s just about finding someone who pays even more.” Buffett’s conclusion: “Bitcoin, that’s rat poison.” ... 

Crypto-currencies, especially Bitcoin, have been experiencing a boom for some years now. From the alternative means of payment, virtual money has become a popular speculative asset over the past five years.

The equivalent in “real” currency has risen sometimes exorbitantly, as well as the desire of many willing to invest to participate in the hype. After all, attract considerable profits even in short periods.

On closer inspection, it is not that easy to get your own piece of the crypto-cake.

Crypto-Mining: The Easy Way to Wealth?

In theory, the concept of mining sounds quite simple: You get a computer with sufficient computing power, to the necessary software and from this point you can (theoretically) watch how the so-called mining rig enters the money. What sounds like a possibility with which even absolute amateur technicians can land a big hit turns out to be quite complex.

This is partly because the underlying blockchain technology is already based on complexity. In order to be able to carry out transactions with them, highly complex cryptographic algorithms have to be resolved. This, too, can be taken over in theory by commercially available computers. In fact, there are even smartphone apps in circulation that exploit the computing power of telephones to dig up bitcoins or other cryptocurrencies without the owners’ knowledge. ...