With the price of a bitcoin surging to new highs in 2017, the bullish case for investors might seem so obvious it does not need stating. Alternatively it may seem foolish to invest in a digital asset that isn’t backed by any commodity or government and whose price rise has prompted some to compare it to the tulip mania or the dot-com bubble. Neither is true; the bullish case for Bitcoin is compelling but far from obvious. There are significant risks to investing in Bitcoin, but, as I will argue, there is still an immense opportunity.

Genesis

Never in the history of the world had it been possible to transfer value between distant peoples without relying on a trusted intermediary, such as a bank or government. In 2008 Satoshi Nakamoto, whose identity is still unknown, published a 9 page solution to a long-standing problem of computer science known as the Byzantine General’s Problem. Nakamoto’s solution and the system he built from it?—?Bitcoin?—?allowed, for the first time ever, value to be quickly transferred, at great distance, in a completely trustless way. The ramifications of the creation of Bitcoin are so profound for both economics and computer science that Nakamoto should rightly be the first person to qualify for both a Nobel prize in Economics and the Turing award.

For an investor the salient fact of the invention of Bitcoin is the creation of a new scarce digital good?—?bitcoins. Bitcoins are transferable digital tokens that are created on the Bitcoin network in a process known as “mining”. Bitcoin mining is roughly analogous to gold mining except that production follows a designed, predictable schedule. By design, only 21 million bitcoins will ever be mined and most of these already have been?—?approximately 16.8 million bitcoins have been mined at the time of writing. Every four years the number of bitcoins produced by mining halves and the production of new bitcoins will end completely by the year 2140.

Read more: Medium

Dec 22nd 2017. The low point in my time as a crypto investor. It’s 5:30am and I’m rooting around in my desk drawers, reaching for my hardware wallet. This thing has given me many happy times, but this morning, I tear it from the box in a panic. Bitcoin is tanking. $15k. $14.5k. $14k. This is it. The bubble has burst. I’m out!

The only thing harder than watching your profits disintegrate is realising that your mental health is in a worse state than your Bitcoin-to-USD balance. This is my first day off work as the Christmas holidays arrive. I haven’t had time off for months, and yet the sleep I’ve been longing for has been broken by the bright light of my smart phone. I’ve been watching the price of Bitcoin all night, drifting in and out of dreams where I see numbers ticking up and down. And as my girlfriend wakes up to the sound of my Macbook starting, I know I’m in trouble.

“Pig, what are you doing?”, she calls out, in complete bemusement (that’s her pet name for me, by the way?—?neither of us know why). Just yesterday we had a long conversation about how crypto was taking over my life. Apparently, I haven’t been ‘present’ enough, and she’s tired of me staring at my phone constantly. Now I’m stood here in the early hours of the morning, wearing nothing but my boxer shorts, frantically punching in the pincode to my Ledger. “Nothing. I just need to send an e-mail to someone at work”, I reply, praying that she doesn’t come into the spare bedroom. A few minutes go past and there she is, standing in the doorway, staring at my Coinbase account. She shakes her head and walks off without saying anything.

Read more: HackerNoon

An open letter to the Bitcoin community by Jörg von Minckwitz

I have been in the crypto economy since the very early days. This was back in 2011 and since then I got to know the ups and downs of the market. I have seen the market crash from over $10 to almost zero, from $100 to under $10 and so on. On Monday morning, as I have always done for the last 6+ years, I was shocked after checking the Bitcoin price. The first thing that came to mind was: This is the end.

It took me a few hours to remind myself that I have been through this more times than I can remember or possibly count. The MtGox closure, “Bitcoin got hacked”, China banning Bitcoin mining, JP Morgan CEO calling Bitcoin “a fraud”, Bitcoin is only for money laundering and many more.

What scares me this time is that there are other players in the game now. In the early days, when the word hodl was more or less born, I had contact with most of the major players and actors in the space and there was always one thing that we all agreed on: We want to change the world. So we fastened our seatbelts and went on the fun and thrilling crypto ride together.

It is the end of an era for me. I say this because, for many in the crypto space, bitcoin and other cryptos are no longer about changing the world – it became a way to make more (and fast) money. That is one of the reasons why people tend to panic and sell – People are afraid of losing money.

In my humble opinion, this is not how bitcoin should be treated. Bitcoin is the biggest experiment in the world so far and it has the potential to change the world as we know it forever. It is not, nor was it designed to be, a tool to get rich quickly.

Read more: Bitwala

Despite a sharp price recovery to over $11,500 today, bitcoin’s bulls are not out of the woods yet, the price charts suggest.

Coindesk’s Bitcoin Price Index (BPI) has climbed 25.9 percent from the eight-week low of $9,199.59 hit yesterday at 15:44 UTC. As of writing, bitcoin (BTC) is trading at $11,590 levels.

The world’s largest cryptocurrency by market capitalization has appreciated by 8 percent in the last 24 hours, according to data source OnChainFX.

However, the investor community isn’t convinced by the move, and comments on social media show that some believe the overnight recovery is nothing more than a “dead cat bounce.”

The price chart analysis indicates that only a close (as per UTC) above $12,500 (prices as per Coinbase) would add credence to rebound from sub-100-day moving average (MA) levels and confirm that a short-term bottom is in place.

Read more: CoinDesk