Getting Smart with Money: The Cryptocurrency Issue

Here are a few articles I found this week that you might enjoy or find useful. 

  1. Bitcoin and Cryptocurrency 101: Understanding the Basics
    Even a superficial scan of the day’s headlines will include a story about Bitcoin, blockchain technology, or cryptocurrency. Unless you have a basic understanding of what these things are, it’s hard to make an informed decision on the value or validity of Bitcoin as an investment or currency. This article does a solid job of explaining all the key terms and facts surrounding Bitcoin and other digital currencies. 

  2. Why Bitcoin is Stupid
    One of my favorite financial bloggers, Mr. Money Mustache, has a knack for using humor (and salty language) to shine light on some of the absurd decisions we make with money. This article is no exception, and if you can’t tell from the title, he has strong emotions about Bitcoin and digital currencies. Whether you agree with him or not, this blog post explains some of the irrational exuberance surrounding Bitcoin in a way that’s humorous and thoughtful. 
  3. Why Bitcoin is the Largest Ponzi Scheme in Human History
    Should you cash out your 401(k) and go all in on Bitcoin? The author of this post doesn’t think so, and he gives some history and background to other speculative ventures and investments people have fallen for in the past few decades. This great, short article is worth a read. 
  4. The Secret Lives of Students Who Mine Cryptocurrencies in Their Dorm Rooms
    No matter what side you take on this topic, there’s undoubtedly an economy at work with people making (and losing) real money on Bitcoin and other digital currencies. Some resourceful college students are cashing in by hitchhiking on the university dorm’s utilities to run resource-intensive computers that can mine digital currency 24/7. 

Let me know what you think about this week’s articles. I love hearing from you!
- Shay