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Money Bitcoin is hot, but good luck using it

09:40  02 december  2017
09:40  02 december  2017 Source:   bloomberg.com

Bitcoin Soars Past $8,000 as Technology Shift Concern Vanishes

  Bitcoin Soars Past $8,000 as Technology Shift Concern Vanishes Bitcoin topped $8,000 for the first time, as investors set aside technology concerns that had derailed its advance earlier this month. Bitcoin rose 4.8 percent to $8,071.05 as of 7:17 a.m. Sydney time on Monday. It’s now up more than 700 percent this year after shrugging off a tumble of as much as 29 percent earlier this month. It’s been a tumultuous year for the largest cryptocurrency, with three separate slumps of more than 25 percent in value all giving way to subsequent rallies.

© Bloomberg Hot Air. But at least part of what underpinned bitcoin ’s more than 900 percent jump this year, at least initially, was the idea that bitcoin ’s The idea, though, that bitcoin is being rapidly adopted, or even just gradually, is a myth. In 2013, a number of retailers and companies, large and

A key aspect of Bitcoin is that it is a cheap way to complete transactions without the middleman. Earlier this year, Bitcoin investor and author Chris Burniske The idea, though, that Bitcoin is being rapidly adopted, or even just gradually, is a myth. In 2013, a number of retailers and companies, large

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Cryptocurrency startup Tether claims it was robbed of $31 million in tokens

  Cryptocurrency startup Tether claims it was robbed of $31 million in tokens Tether noted in a now-removed post on its site that nearly $31 million worth of tokens were stolen from the treasury in which it stored its dollar-pegged cryptocurrency. The company said that it won’t redeem any of the stolen tokens, and will attempt to prevent them from entering other exchanges.

Its use as a medium of exchange has become entirely beside the point. Most of what has been propelling the cryptocurrency’s remarkable rise But at least part of what underpinned bitcoin ’s more than 900 percent jump this year, at least initially, was the idea that bitcoin ’s acceptance, and use

" Bitcoin hits another record high in march towards ,000" – Reuters Story continues below advertisement "Busting the myth that bitcoin is actually an efficient payment mechanism" – FT Alphaville " Bitcoin Futures May Offer No Way Out" – Gadfly " Bitcoin Is Hot , But Good Luck Using

Editor's note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

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Bitcoin Surges to New Highs: Is Now the Time to Invest?

  Bitcoin Surges to New Highs: Is Now the Time to Invest? Despite the naysayers, the value of Bitcoin and other cryptocurrencies is soaring to new highs, making HIVE Blockchain Technologies Ltd. (TSXV:HIVE) an intriguing investment.Now what?

Bitcoin seems to be everywhere these days. Finding a place to spend it is another matter entirely. That flies in the face of popular perception that businesses The rise of bots is likely to bring some stability to cryptocurrency markets.This was the week that Bitcoin went mainstream, a sure sign that we have

Bitcoin seems to be everywhere these days. Finding a place to spend it is another matter entirely.

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Bitcoin seems to be everywhere these days. Finding a place to spend it is another matter entirely.

That flies in the face of popular perception that businesses are trumpeting the acceptance of the digital currency as a form of payment. Looking for a mate? OkCupid stopped accepting cryptopayments a year ago.  Booking a flight? Expedia.com and Virgin Atlantic both dabbled in bitcoin but now don't accept it for airfare. A Holiday Inn in Brooklyn no longer books beds for bitcoins.

Nor can you raise a pint at north London pub Pembury Tavern, which received some press a few years ago for entering the digital currency economy but has since, like others, quietly exited.

And chowing down with bitcoin is getting complicated. The website airbitz.com lists just three restaurants in Manhattan where diners can pay with bitcoin. Two have closed. A third, Melt Bakery, which sells only ice cream sandwiches, accepts bitcoin, but the last time it did was July 2. And while the website of Piccola Venezia, an upscale Italian restaurant in Astoria, Queens, says "bitcoin accepted here," I wouldn't make the trek. The person who answered the phone there said bitcoins were not welcome. "It's a big mistake."

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An eGifter spokersperson said customers can use bitcoin , but the transaction is “slightly more complicated” than using cash. Transaction Driven The value of bitcoin transactions has spiked recently but is up just more than 400 percent compared with the first 11 months of last year.

Bitcoin seems to be everywhere these days. Finding a place to spend it is another matter entirely. That flies in the face of popular perception that businesses are trumpeting the acceptance of the digital currency as a form of payment.

It does looks as if pizza lovers can get Domino's delivered in Brooklyn with bitcoin through a website called Pizzaforcoins.com, but it will cost them. A large pie with one topping (and the website forces you to get at least one topping -- I went with extra cheese) was 0.0036 bitcoin when I checked on Thursday, which translated to $34.12 before tip. It normally costs $8.70.

None of this is likely to rattle investors who are rushing into bitcoin. Its use as a medium of exchange has become entirely beside the point. Most of what has been propelling the cryptocurrency's remarkable rise recently has been, as in any bubble, the fact that the price has been climbing rapidly. The rise justifies the rise. And many bitcoin investors now view bitcoin more akin to gold than say dollars or any other traditional currency.

a screenshot of a map: Hot Air© Bloomberg Hot Air

But at least part of what underpinned bitcoin's more than 900 percent jump this year, at least initially, was the idea that bitcoin's acceptance, and use, was spreading more widely. A key aspect of bitcoin is that it is a cheap way to complete transactions without the middleman. Earlier this year, bitcoin investor and author Chris Burniske gave a presentation about the network value-to-transaction ratio, which compares the value of all bitcoins to transactions being done in the currency. Some have dubbed the ratio "bitcoin's P/E" and used it to argue against a bubble.

Index fund-type coins are about to enter Cryptocurrency market

  Index fund-type coins are about to enter Cryptocurrency market If you’ve seen media coverage of Bitcoin and the rise of cryptocurrencies, you’re probably thinking of getting into the action, if you haven’t already. Aggregated Coin (AGRE) and UpStart1K (UP1K) are ICOs that will launch on December 1st.

Analyst who predicted Bitcoin 's rise now sees it hitting 0000-0000 – CNBC. Next story Bitcoin Job Postings Are Surging on LinkedIn – Bloomberg.

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The idea, though, that bitcoin is being rapidly adopted, or even just gradually, is a myth. In 2013, a number of retailers and companies, large and small, started accepting bitcoin. Four years later, shoppers can't use it at any large physical retailer. What's more, not only have Walmart and The Gap not adopted bitcoin, many of the places that said they would no longer do.

A long list of merchants that take bitcoin has circulated the Internet for the past few years, published most recently on 99bitcoins.com. But the list is mostly bogus. Many of the businesses on the list no longer take bitcoin or never did. There is a bitcoin payment button for online electronics retailer Newegg.com, but when I tried to use it for a Nintendo Switch, it didn't work. Even Bloomberg is on the list, but my colleagues in billing say you can't pay your terminal fee in bitcoin. Nor can you get a subscription to BusinessWeek or any of Bloomberg's other publications or services. On Thursday, Mike Bloomberg threw some cold water on the idea that bitcoins would be used widely anytime soon.

You can, in a roundabout way, use bitcoin to buy groceries at Whole Foods, but only after buying a gift card from eGifter, which is really no different from having to convert bitcoins back into cash before using them. And a number of web reviews of eGifter suggest the process is not painless or quick. An eGifter spokersperson said customers can use bitcoin, but the transaction is "slightly more complicated" than using cash.

Bitcoin blasts past $10,000 mark amid bubble concerns

  Bitcoin blasts past $10,000 mark amid bubble concerns The cryptocurrency's value has risen nine-fold since the beginning of the year. Tuesday's trading price gives bitcoin a market capitalization of $168 billion, greater than the vast majority of S&P 500 companies, including Dow 30 components Boeing, Disney and GE.Since its founding in 2009, bitcoin has made a name for itself by allowing for anonymous transactions. The digital currency is now accepted by more than 100,000 merchants worldwide, including Microsoft, Dish and Subway. The cryptocurrency has experienced a massive run in 2017. On Jan. 1 this year, bitcoin was priced at just under $1,000.

Bitcoin Badshah. A curated collection of the best news for bitcoiners each day.

HOT AIR. But at least part of what underpinned bitcoin 's more than 900 percent jump this year, at least initially, was the idea that bitcoin 's acceptance, and The idea, though, that bitcoin is being rapidly adopted, or even just gradually, is a myth. In 2013, a number of retailers and companies, large and

a screenshot of a cell phone: Transaction Driven© Bloomberg Transaction Driven

Even so, a number of sites that track bitcoin, like Blockchain.info, show that use is up. On average, the daily value of bitcoin transactions has risen just more than 400 percent this year compared with the first 11 months of last year, according to Blockchain.info. But given the fact the number of places accepting it is falling, that seems hard to believe. The number is supposed to track just the volume of bitcoins used to buy actual goods or services. Even bitcoin believer Burniske thinks the figure has likely been inflated by all the people who have rushed into bitcoin as an investment. Worse, the cost to complete those transactions is rising even faster, with fees charged up nearly 2,200 percent this year, although it's still minuscule on an absolute level, a fee of just 0.05 percent of the average transaction this year.

a screenshot of a cell phone: Fee Inflation© Bloomberg Fee Inflation

Again, none of this will likely pierce the frenzy around bitcoin. Who in their right mind would spend the stuff now anyway, even if they could?

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

Stephen Gandel is a Bloomberg Gadfly columnist covering equity markets. He was previously a deputy digital editor for Fortune and an economics blogger at Time. He has also covered finance and the housing market.


Bitcoin Futures Start With a Bang as 26% Rally Triggers Halts .
Bitcoin has landed on Wall Street with a bang. Futures on the world’s most popular cryptocurrency surged as much as 26 percent in their debut session on Cboe Global Markets Inc.’s exchange, triggering two temporary trading halts designed to calm the market. Initial volume exceeded dealers’ expectations, while traffic on Cboe’s website was so heavy that it caused delays and outages. The website’s problems had no impact on trading systems, Cboe said.

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