CNBC’s Jim Cramer sold some of his Bitcoins to pay for a home mortgage

Jim Cramer, the Mad Money host on CNBC media company, has revealed that he recently paid off a mortgage using profits generated from his Bitcoin investments. On Thursday, April 15, Cramer disclosed that he paid off his mortgage the day before by selling half of his Bitcoin investments.

Cramer stated on CNBC’s Squawk on the street: “From the chart, I may be the only natural seller, but it was so great to pay off a mortgage.”

He further added: “It was like, kind of, phony money paying for real money. I now own a house—lock, stock, and barrel—because I bought this currency. I think I won!”

He stated that he purchased a significant amount of Bitcoin when the price was at around $12,000. Yesterday on April 15, Bitcoin price was selling at $64,829.

Cramer appeared to suggest that he followed investment advice he normally gives to his viewers: “Trimming positions to take profits after seeing considerable gains.” He said that he had sold half of his Bitcoin holdings.

Cramer has been a vocal supporter of Bitcoin for a while now. In February, he talked about his motivation for owning Bitcoin describing the crypto as “an alternative to a cash position, where you make absolutely nothing.” He therefore mentioned that it would be “almost irresponsible” not to include Bitcoin in a portfolio.

Last month, Cramer stated that he made more money from his investments in Bitcoin than what has on gold.

Although Cramer did not specify exactly how much money he generated from his Bitcoin sales, in other interviews, he stated that he invested $500,000 in Bitcoin after he faced frustrations with gold. That could put his profits from yesterday’s sales at over $1 million.

Why Bitcoin Is A Good Thing

Bitcoin continues to gain more and more authority as more investors are allocating part of their cash into the cryptocurrency. Most prominent entrepreneurs have adopted the alternative store of value. Michael Saylor, the founder and CEO of MicroStrategy software firm, was the first ever institutional investor to bet on Bitcoin. Jack Dorsey’s Square became the second to invest in the crypto asset and among other investors, Tesla became the biggest.

Many investors together with Saylor are borrowing money at low-interest rates to purchase even more Bitcoins. The reason is that Bitcoin is a relatively safe bet.

Recently, Saylor hosted a seminar for institutional investors to help them understand the benefits of purchasing and holding onto Bitcoin when reflected in the current conditions of the economy. The economy is unstable and with inflation and decreasing buying power of fiat money, investors see Bitcoin as the solution.

Source: Blockchain News

Why is Ethereum price going parabolic?

The price of the world’s second largest cryptocurrency, ether, hit a new all-time high of US $ 1,440 (£ 1,050) on January 19. This breached a previous high set three years ago and gave ether a total value (market capitalization) of US $ 160 billion, although it has since fallen back to around US $ 140 billion.

Ether, which runs on a technology system known as the ethereum blockchain, is worth over ten times the price it was when it bottomed during the COVID market panic of March 2020. And the cryptocurrency is still only five years old. In part, this remarkable rise in the value is due to excess money flowing into all the leading cryptocurrencies, which are now seen as relatively safe store-of-value assets and a good speculative investment.

Ether / US $ price

But ether’s price rise has even outstripped that of the number one cryptocurrency, bitcoin, which “only” had a seven-fold increase since March. Ether has outperformed partly due to several improvements and new features being rolled out over the next few months. So what are ether and ethereum and why is this cryptocurrency now worth more than corporate giants such as Starbucks and AstraZeneca?

Ether and bitcoin

Blockchains are online ledgers that keep permanent tamper-proof records of information. These records are continually verified by a network of computer nodes similar to servers, which are not centrally controlled by anyone. Ether is just one of over 8,000 cryptocurrencies that use some form of this technology, which was invented by the anonymous “Satoshi Nakamoto” when he released bitcoin over a decade ago.

The ethereum blockchain was first outlined in 2013 by Vitalik Buterin, a 19-year old prodigy who was born in Russia but mostly grew up in Canada. After crowdfunding and development in 2014, the platform was launched in July 2015.

As with the bitcoin blockchain, each ethereum transaction is confirmed when the nodes on the network reach a consensus that it took place – these verifiers are rewarded in ether for their work, in a process known as mining.

But the bitcoin blockchain is confined to enabling digital, decentralized money – meaning money that is not issued from any central institution unlike, say, dollars. Ethereum’s blockchain is categorically different in that it can host both other digital tokens or coins, and decentralized applications.

Decentralised applications or “dapps” are open-source programs developed by communities of coders not attached to any company. Any changes to the software are voted on by the community using a consensus mechanism.

Perhaps the best known applications running on the ethereum blockchain are “smart contracts”, which are programs that automatically execute all or parts of an agreement when certain conditions are met. For instance, a smart contract could automatically reimburse a customer if, say, a flight was delayed more than a prescribed amount of time.

Many of the dapp communities are also operating what is known as decentralized autonomous organisations or DAOs. These are essentially alternatives to companies and seen by many as the building blocks of the next phase of the internet or “web 3.0”. A good example is the burgeoning trading exchange Sushiswap.

Ethereum has evolved and developed since its launch six years ago. In 2016, a set of smart contracts known as “The DAO” raised a record US $ 150 million in a crowdsale but was quickly exploited by a hacker who siphoned off one- third of the funds. However, since then, the ethereum ecosystem has matured ca However. While hacks and scams remain common, the overall level of professionalism appears to have improved significantly.

Why the price explosion

Financial interest in ether tends to follow in the wake of bitcoin rallies because it is the second-largest cryptocurrency and, as such, quickly draws the attention of the novice investor. All the same, there are other factors behind its recent rally.

The first is the pace of innovation on the platform. Most activity in the cryptocurrency space happens on ethereum. In 2020, we saw the emergence of decentralized finance (DeFi). DeFi is analogous to the mainstream financial world, but with the middleman banks cut out.

Users can borrow, trade, lend and invest through autonomous smart contracts via protocols like Compound, Aave and Yearn Finance. It sounds like science fiction, but this is no hypothetical market – approximately US $ 24 billion is locked into various DeFi projects right now. Importantly, DeFi allows users to generate income on their cryptocurrency holdings, especially their ether tokens.

The second factor behind the ether surge is the launch of ethereum 2.0. This upgrade addresses major concerns impacting the current version of ethereum. In particular, it will reduce transaction fees – especially useful in DeFi trading, where each transaction can end up costing the equivalent of tens of US dollars.

Ethereum 2.0 will also eliminate the wasteful mining currently required to make the ethereum blockchain function (the same is true of many other cryptocurrencies, including bitcoin). Within the year, ethereum should be able to drop the need for vast industrial mining that consume huge amounts of energy.

Instead, transactions will be validated using a different system known as “proof-of-stake”. The sense that ethereum addresses problems like these quickly rather than letting them sit could prove a major differential from the sometimes sluggish and conservative pace of the bitcoin development culture.

A final factor is the launch of ethereum futures trading on February 8. This means that traders will be able to speculate on what ether will be worth at a given date in the future for the first time – a hallmark of any mature financial asset. Some analysts have said the recent bitcoin rally has been fueled by traditional investment firms, and the launch of ethereum futures is often touted as opening the doors for the same price action.

However, as every seasoned cryptocurrency user knows, both currencies are extremely volatile and are as as extremes as rise by them. Bitcoin’s price fell 85% in the year after the last bull market in 2017, while ether was down by 95% at one stage from its previous high of US $ 1,428.

Whatever the valuation, the future of ethereum as a platform looks bright. Its challenge is ultimately external: projects such as Cardano and Polkadot, created by individuals who helped launch ethereum itself, are attempting to steal ethereum’s crown.

But as bitcoin has shown, first-mover advantage matters in cryptocurrency, and despite bitcoin’s relative lack of features it is unlikely to be moved from its dominant position for some time. The same is most likely true for the foreseeable future with ethereum.

Bitcoin Price Research Papers

Bitcoin’s price is very volatile. Bitcoin Price Study helps you learn about the important factors and the different factors that influence Bitcoin price.

Have you ever rode the Kingda Ka at Six Flags Great Adventure?
If you have, you might understand how it feels to HODL Bitcoin.

Just recently in one-month Bitcoin’s price rose over 10,000 dollars
only to fall more than 10,000 dollars the following month.

A twitter-verse full of financial advisors all have their theories but we here at Cointelegraph felt it was time for a more clinical approach.

So, what exactly are the factors that influence Bitcoin’s price?
Demand and Supply: This factor is major.

Nowadays, Bitcoin does not have any physical equivalent in the real world, so BTC are sold on exchanges.

The main principle of economics says that if people buy a currency, its price rises and if people sell the currency, its price falls.

Bitcoin is no exception.

That is how we find ourself in the world of bulls and bears and whales, oh my!

The total amount of Bitcoin Holders: The total amount of Bitcoins is 21 mln, but they are produced with time.

Currently, there are about 17 mln BTC and more than 14 mln people have wallets with BTC.

This number is growing rapidly and since the number of Bitcoins is fixed, the price will continue to rise.

News and Mass Media: There’s always a human factor involved – i.e. the way people can react to the news.

This type of news has been dubbed FUD by the cryptocurrency community which means ‘fear uncertainty and doubt.’

When FUD hits, the price of Bitcoin inevitably takes a hit as well as was seen this past January when news of Korean regulation hit the papers.

Regulation: In the age of globalization, decisions in just one country can have an influence on the entire world – i.e. accepting Bitcoin as a means of payment in Japan.

The greatest problem with predicting Bitcoin’s price is that the factors which influence it are hard to predict.

Because of this, we recommend that instead of trying to predict the whims of the world in the future, look backwards.

Look at the financial crisis of 2008, look at governments who keep a stranglehold on the poor and the hyperinflation that impacts countries all over the world.

Look at the way money has been handled, manipulated and abused over the past 100 years.

If you do that, you’ll stop worrying about Bitcoin’s price and start being hopeful for how it will change the world.