Should you invest in cryptocurrency? | CNBC Explains


If you bought $1,000 worth of bitcoin back in August 2010 that money would now be worth an estimated $50 million. For many investors and Wall Street sharks those returns are too tempting to ignore. But bitcoin is not the only cryptocurrency attracting excited investors. Ethereum, ripple, litecoin and dash are some of the other thousand or so digital currencies that have been created so far. But are they a safe bet for your hard-earned money? And can the growth continue? The financial crisis back in 2008 exposed the imperfect system the banks are run on. Every time we make an online payment or transfer our dollars from one account to another, we’re placing our trust in big corporations and banks that are vulnerable to digital fraud and bankruptcy. Virtual currencies however are exchanged on a decentralized peer to peer network. Analysts believe this new payment network, not run by profit-driven companies, is more revolutionary than the currencies themselves. All transactions occur on a shared public register, called a blockchain, which are then verified by several users and their computers. All while your identity remains hidden. But while blockchain is being celebrated amongst industry experts, cryptocurrencies themselves continue to divide opinion. Normally, governments and central banks keep an eye on a country’s currency. They have the ability to take a number of measures that could either increase or decrease its value. And although that might not always work, there is at least someone held accountable. With cryptocurrencies there is no institution or person protecting their value. That means prices are based solely on what people think they’re worth and if something undermines that belief, they can go into free fall. And earlier this year, the second biggest cryptocurrency ethereum, did just that. Its value collapsed from $317 a coin, to ten cents a coin, in just one day. Although Bitcoin had a more than 100% return on investment in 2016 it’s also five times more volatile than the S&P 500. Many investors are spooked by that kind of instability knowing that if something were to go wrong. You’d have no support. Digital currencies are also known as a ‘fool’s asset’ like art or wine, meaning they don’t provide regular returns on your investments the way rental income through a property or dividends from shares in a company would. The only way to make money through virtual currency trading is to find someone who will pay you an even higher price than you did originally. But based on current trends chances are you will, especially if you pick a winner like bitcoin, its price having more than doubled in 2017. But many analysts believe the bitcoin gravy train has left the station and that the real profits are to be made in the smaller coins. The price of NEM coins, dash coins, lite coins, and more, have all soared this year. Digital currency transactions though are still reliant on human intervention. That’s because each transaction has to be checked and registered by multiple people which can result in trades being slow to process. Additionally, the people doing the checking aren’t necessarily interested in your transaction. And may want to keep prices high if they’re holding onto bitcoins or ethereum themselves. So as bitcoin users demanded quicker transactions, this was at odds with the people mining bitcoins. Fears were growing that this was going to become a huge problem. That led to a split in the bitcoin currency in August 2017. The original bitcoin is now referred to as core. While a second currency, bitcoin cash, was created alongside it. It provides quicker transactions and is the fourth biggest cryptocurrency, now worth over $5 billion. Like most virtual currencies, it is extremely volatile and 24 hours after bitcoin cash was created, its price fell by more than half. This revealed a weakness in the system whereby the people using the currencies are still reliant on an entirely different group of people to make that exchange official. Yet for many countries and their citizens, digital currencies provide a lifeline. Take for example, Venezuela which is plagued with a shortage of cash and the highest inflation rate in the world. Or China whose government has restricted movement of capital outside of the country. Digital currencies present an attractive alternative to traditional currency and investments. Its rising popularity in these countries is part of the reason behind bitcoin’s recent surge. So should you invest in a cryptocurrency? Well that’s up to you. One thing is for sure though, regardless of its ups and downs, the technology behind it, particularly blockchain, is the real game changer. And not just for cryptocurrencies. Hi everyone, thanks for watching. If you want to know more about the blockchain technology we discuss in this video, click here. Or if you want to learn about what’s happening in Venezuela, try this video. We’re taking your suggestions for future CNBC explains, so leave us ideas in the comments. And while you’re at it, don’t forget to subscribe.

56 Replies to “Should you invest in cryptocurrency? | CNBC Explains

  1. How can you mention the $0.10 flash crash and not tell it was $0.10 for only a split-second before it went right back up to its former value.
    and even then, this was caused by a bug in the system of the exchange it was traded on, everyone who lost their Ethereum because they sold during that crash got refunded.

  2. I love the casino theme ahaha like it's all just gambling & the ETH flash crash with no mention it recovered the same day. This kind of reporting should be illegal it almost sounds like propaganda to someone who knows better

  3. As others have said, the Ethereum flash crash lasted for literally seconds and it was confined to a single exchange.
    I had Eth on that exchange during that crash and it had absolutely no effect.
    If you want to margin trade this stuff, yeah it's a risk you take (unless exchanges implement circuit breakers of the kind used in stock exchanges, which "pull the plug" in moments of excessive volatility). If you're stupid enough to margin trade positions that would liquidate your entire holdings, you deserve it.
    But ordinary people who just want to buy it and hold onto it and see the value go up as happened with Bitcoin are completely unaffected by such events. Most people won't even know what a margin position is.

  4. Bitcoin is not meant to be an investment. It is meant to replace the fraudulent monetary system in place now. This is the one of the dumbest videos I have seen. Screw the federal reserve. Buy bitcoin. Use bitcoin. Get rid of fiat money. The more it is used the more places will accept it.

  5. URGENT WARNING – CEO Giacomo Bugini is A FRAUD AND PRICK – YOU FOOLS, THIS BTCMINER IS 1000% A SCAM, IT’S FRAUD AND A PONZI SCHEME. THEY GET YOU TO UPGRADE, WITH PROMISES OF FASTER PAYOUYS. TAKE YOUR MONEY AND IT IS GONE. SURE I WAS GETTING MY PAYOUTS WITH V1.0, AND v1.1, BUT THEY WHERE VERY SMALL 0.0050000. ONCE I SENT THEM THE REQUIERED 0.54/$2500 TO UPGRADE TO V1.3 GUESS WHAT?, THE PAYOUTS STOPPED. I TRIED TO WITHDRAW .75 AND I NEVER RECEIVED IT. YET IF YOU LOOK AT THEIR BOGUS PAYOUT SCREEN IT WILL SHOW YOU HUNDREDS OF SUPPOSED PAYOUTS IN THE LAST 24 HRS , I SAW ONE THAT WAS FOR 5.5 BTC, I CALL BULLSHIT. IT IS ALL A FAKE AND A SCAM, THEY JUST WANT YOUR MONEY, NO ONE IS GETTING THEIR BTC OR MAKING A PROFIT, THEY WANT YOU TO PAY THEM FOR THE UPGRADES AND THEN NO MORE MINING WITHDRAWS. STAY AWAY FROM THESE SCAMMERS. Note- I CONTACTED HIM ON HIS FACEBOOK, HE THEN REMOVED HIS FACEBOOK. – Giacomo Bugini is the owner of BTCMiner and Startminer and Bitminer as well as many other BTC mining SCAM sites, HE IS CURRENTLY UNDER INVESTIGATION FOR FRAUD AND RUNNING A PONZI SCHEME. All sites he is associated with are SCAMS, PONZI schemes. BEWARE – HE IS ALSO AFFILIATED WITH SITES LIKE COINBASE AND BLOCKCHAIN. STAY AWAY FROM ALL SITES HE IS AFFILIATED WITH!!!

  6. URGENT NEWS – STAY AWAY FROM BLOCKCHAIN & COINBASE, THEY SUPPORT MANY SCAM AND FRAUD WEBSITES CURRENTLY UNDER INVESTIGATION, YOUR MONEY WILL NOT BE SAFE WITH THEM. URGENT UPDATE: I POSTED ON THE BLOCKCHAIN FACEBOOK, THEY WHERE SO AFRAID OF THE TRUTH GETTING OUT, THEY BLOCKED ME.

  7. Cryptocurrency is the most secure online trading in the world is a life changing platform in online investment. I made $250,000 in my first quarter and 8% and above of my investment on daily basis, to me it is an amazing performance. Invest in BTC and make money today. Richard ([email protected])

  8. Planning to invest? Try the new ICO Ethconnect now!
    Similar to BitConnect, this token will go for $0.50 each, hence more tokens!
    Join my team at:
    https://ethconnect.net/ref/wannlive

  9. Some Bitcoin investors Do get a regular profit for instance https://anobrainer.usitech-int.com/ will give a person 1% per day until 140% ROC is obtained in about 6 months of the contract time! 😉 between 6 and 7 percent gains per month is better than any stock or fund most people will ever see!

  10. @CNBC International, selective journalism is not ok. If you want to talk about ETH's flash crash, then fully talk about ETH's flash crash. Selective reporting is wrong.

  11. There is so much happening in the markets its crazy. Laser have paused payments until the issues with blockchain have been resolved. L.O.P will only get stronger! https://goo.gl/8Gwb9P

  12. There is so much happening in the markets its crazy. Laser have paused payments until the issues with blockchain have been resolved. L.O.P will only get stronger! https://goo.gl/8Gwb9P

  13. Dislike for selective journalism and lack of research. You only advertise bitcoin because your company is most likely invested in BTC itself, scumbag. Eth is now $450 suck it

  14. Average people don't seem to realize that the only way for Bitfinex to avoid the liability on their books is to do a manipulated crash of BTC and other tokens to 0, or claim another "hack". Well, the first option sounds more tempting as they can magically exponentially grow their income! Bitmex could be used as an intermediary to obtain 100X leverage, that way only some millions of USDT printed become sufficient and not raise many red flag.
    Beginner investors are told by corrupt special interest people (and those brainwashed) in the internet, TV and other medias: Just buy the dip! Who said their will be any dip?!? $11K to $0 only needs few seconds to happen (remember ETH flash crash to 10 cents, when poor Coinbase paid the price and it's maybe not even their fault..), with all the available trading options available today… I do not advise anyone to go short, bcz again Tether may be trying to take over Wall Street and short real commodities to take it to the next level. Just stay away!! The most unethical thing you can do is try to take advantage and do trades even if you have the best guaranteed insider info from Tether Bitfinex club

  15. For those of you who are interested Cointed, a well established company is currently having its ICO up and running. The goals are many but an interesting fact about Cointed is that it is on its way of getting its European/Austrian banking license. If you happen to be interested please visit the ICO website. – https://cointedtoken.com/

  16. In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher.

  17. Bitcoin and Ethereum has and is still  making a lot of people "stupid rich"  $10(ten dollars) seven years ago is now worth $7.5 million in bitcoins today.  And $100(hundred dollars) in Ethereum has increased to as high as $66,290 in under two years! The trend is on a daily increase,  worldwide, investors in crypto and digital  currencies are getting rich daily, I personally have invested in bitcoin and Ethereum. And I've collected bigger gains investing these coins than in anything else in my life. For example, I bought bitcoin twice, last year and early this year, 10 coins at $83.40. And 20 more at $128. Today my 20 coins trade nearly 24 times higher . And I also bought Ethereum last November at $9.70… before it rocketed to $355! I was up over 3,500%. But here is the thing nobody is talking about, bitcoin and Ethereum aren't the real success stories anymore. It's the smaller and unpopular new digital currencies that are rewarding investors with the next round of huge wins. For example , I recently obtained 27,000 coins in a tiny new digital currency for just 18.5 cents per coin. Those coins now trade for around $4 each- 1,981% higher. And I invested in another one that's jumped from $1.50 to $10.71. Yet this opportunity is just getting started, today I'll show you the new digital currencies that can turn as little as $10 into over $1million. in the blink of an eye. Yes, that's right. a single crispy $10 bill could make you a millionaire. now for the doubters, not only is it possible, it's actually happening right now, a considerable number of  investors worldwide have seen gains of 75,063% in Cryptonite, 59,577% in InfluxCoin, 60,450% in MaxCoin, and even 823,750% in DubaiCoin! Tiny new digital currencies are offering profits far bigger than bitcoin and much more quickly,  I've personally made over 600% in one digital currency more than 1,981 in a second and over 3,500% in another, and I expect to make a whole lot more. Digital currencies is now one of the online investments where you can start with $10 and turn that into real money fast. CNBC did a story about a high school dropout who bought some bitcoin at $12 and is now a millionaire. also top investors worldwide are going all in on the new digital currencies. Now this is what you guys should know . A new set of  coins are being launched now that could help you turn as little as $10 into over $1 million. I've never seen profit opportunities like this before in any market and at anytime. For example, in one recent week 23 separate digital currencies doubled in value. By comparison, the S&P 500 hasn't seen a single stock double yet this year. But only those who recognize the opportunity right now will see the fast profits. I first got in on Bitcoin at $83.40 and $128… only to watch it soar to over $2,000. But now I've turned my attention to the new digital currencies. For example; I invested in ANTSHARES earlier this year and at the time it was trading for just $1.50 but I watched it climb to $10.71 in less than a month. I invested in tiny new digital currencies of 12 coins and I cashed out 12,000 at $3.50 but still hold the rest… nearly $100,000 in total. There are now dozens of small digital currencies trading for just a few cents that are moving up dramatically over very short periods; like Asch traded for few cents at first but in less than 3 months $100=$,570. NolimitCoin traded for few cents but now $100=5,348 in 6 days. MediterraneanCoin traded for few cents but now $100=8,313 in 3 months, the list is endless, I will stop here so I don't bore you guys, but it is sure worth your time. in case you are interested in venturing into investing in Crypto and Digital Currencies, or perhaps you are trading them but you don't understand what you are doing, feel free to message me through email and I will be sure to guide and assist with any information you may need to invest in  these new and unpopular  crypto and digital currencies that are making waves at the moment. [email protected]

  18. at 1 and a half minutes into the video, the man starts to LIE HIS ASS OFF. Banks NEVER 'increase the value of currency' or 'keep an eye on it' with the idea of 'helping out the little people'. That is a LIE. Banks do one thing only— they print money (counterfeiting to you and me) and that inflates the currency, causing a decrease in it's purchasing power. Banks STEAL wealth from you, they do not 'watch out for you' or 'increase the value of' money. Next… NO ONE, least of all the banks themselves are ever 'Held Accountable' for this fraud they perpetrate on the people. They steal money legally and call it inflation. No one is ever taken to task for this action that would immediately get any 'normal person' thrown in jail for life if they tried to do the exact same action. Banks are the enemy, not the savior of the monetary system. They are above the law. Next… you claim that bitcoin's price is based solely on what people think it is worth. That is what the current US Dollar is based on. It is a fiat currency. FIAT…. Meaning… it only has value because the bank SAYS SO. Not because of any real, tangible value. Silver for example, has value because it is mined from the ground in limited supply through massive time labor and cost. It is needed to make cell phones, computers, etc… and cannot be replaced with other similar materials. THAT is real value. The US Dollar is a piece of paper. an IOU that says, "I am worth something because the government says I am."
    So the man in the video is lying to you again for the 3rd time. He wants you to believe that the dollar is different from Bitcoin… it is NOT DIFFERENT. They are both fiat. if something undermines the belief in the dollar it will also free-fall. That is why they prop it up and push down the value of gold with false banking tricks… for that exact reason. They fear that people will lose confidence in it's fake fiat nature. That is a fact. ALL fiat currencies go to zero. Look it up. ALL of them do. Most don't last more than 30-40 years. Ours is due for a crash. It has already lost most of it's value. That is why a pack of smokes is 10 dollars against a 7 dollar minimum wage…vs…. 75 cents a pack 30 years ago with a 5 dollar minimum wage. You lost almost 5 packs of smokes per one hour of labor in the past 30 years without even realizing you were being stolen from. That is the silent scam of the largest theft ever perpetrated on mankind. The scam of INFLATION. This man is attacking Bitcoin but praising the banks and government way of screwing us. Same ole same ole. Then the man lies about Etherium crashing. That crash lasted 5 seconds. look it up. He is using fear to manipulate you. That crash reversed itself immediately and now Etherium is worth 1,200 dollars a coin. This man is a LIAR. Do not trust main stream media. They are a propaganda machine for government lies.

  19. By now you can probably see that the answer isn’t that simple. It’s not just a matter of should you invest, but also a matter of how to invest. Start by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc.We can learn a lot from videos like yours!

  20. one moron says "blockchains more revolutionary than currencies" and other morons pick it up. how do you think decentralization is achieved if not for incentives punishments and rewards built specifically USING those base currencies. blockchain by itself is just a highly inefficient database

  21. The gaming background was carefully planned by CNBC to suggest bitcoin and other cryptocurrencies are just a game and not a financial revolution that will disrupt everything we know.

  22. Hey all, If you don't take risk, you will definitely work for someone who does, I took a risk in bitcoin investment through Smith which I have been benefiting from and living a good life, I’ll say the good luck found me, I invested bitcoin $400 {0.0623 BTC} and earn up to $7500 in a week and I have earned repeatedly through his channel. You can benefit from this offer by reaching Smith through : Williamsdhackghost @gmail….com. Reach out now if you want to invest in other Crypto-currencies works as well

  23. the New world order khazarian mafia uses cryptos to traffick children via the website Backpage com and Trump indicted it and now as the pedophiles are arrested their crypto holdings are immediately liquidated simple as that

  24. Oops
    https://chrome.google.com/webstore/detail/threelly-ai-for-youtube/dfohlnjmjiipcppekkbhbabjbnikkibo

  25. I don't want a government guarantee on my deposits – those things r scams. @1:46 same with any fiat currency – it's called hyperinflation.

  26. Bitcoin payments is magic transfer system for oversea people such as chadian.
    Thanks for your video how impressing.

  27. When I saw your video for Bitcoin I'm excited because of I'm waiting my withdrawing funds at my local bank.
    This withdrawal will enable me to realize my project investment that is to say " Kelo English center equipped with didactic materials and funiture" and so I'm about to get my transactions including my withdrawal.
    More once thanks for everything you to do for any organization.

  28. yep, you should invest in cryptocurrency, i heard about coinicocrypto from Quora and i am so glad i invested there. I invested on @t and i saw my investment growing. i withdrew more than i invested within 24hours, i then invested more which is growing now on the dashboard. It is a smart way to invest your bitcoin

  29. Just wonderful, I've been looking for "can you day trade crypto on robinhood" for a while now, and I think this has helped. You ever tried – Piyatt Cryptofy Phenomenal – (should be on google have a look ) ? Ive heard some unbelievable things about it and my co-worker got cool results with it.

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