News

Related: Bitcoin

Bitcoin has once again hit headlines with another all-time high of $3,800 (at the time of writing). In the last week alone it went up almost 25%. Many think it will reach $5,000 before the year ends, some think a Bitcoin will be worth $100,000 in 5-10 years and many of us have been tortured by stories of small investors who put $300 in at the start and are now millionaires. I started buying Bitcoin after reading this Bitcoin article in the Guardian, where Bitcoin trader Huai Yang predicted that one Bitcoin will be worth one house.

Should I Buy Bitcoin?

I am not alone in my enthusiasm for Bitcoin. Some commentators such as Louis Basenese on The Daily Reckoning go as far as urging their readers to seize this historic opportunity. Fortune.com reports on Fred Wilson’s vision. Fred Wilson is the venture capitalist known for backing Twitter and Tumblr. He has made a big bet on blockchain cryptocurrencies including Bitcoin—and he thinks regular investors should buy some too.

Wilson believes that coinbase offers the equivalent of a Wall Street bank for digital currencies. Wilson said that coinbase, which is a Bitcoin, Litecoin and Ethereum brokerage, is “like J.P. Morgan or Goldman Sachs for blockchain…”.

He said “If I were a trader, a stock trader or hedge fund person, I might think of having 5% of my assets in something like this,” Wilson added. “It’s still early days; I don’t think you want to go all in on it, but I think you want to be in it.”

Our Travel Auctions

Earn Airline Miles Buying Bitcoin

If you do decide to buy Bitcoin, make sure you set it up using a coinbase referral link like mine. Once you buy or sell $100 USD (£76) of digital currency or more, you will get $10 USD (£7) of free Bitcoin (as will your referrer, which on the link above would be me).

I now want to explain how to boost your airline loyalty balance while making an investment in Bitcoin. The key is having a MasterCard, VISA or Maestro card that earns air miles. If you want to buy Bitcoin, you could join coinbase and can immediately buy Bitcoin (or Litecoin & Ethereum) via your VISA, MasterCard or Maestro card from anywhere in the world.

The Points Guy gives a breakdown of the best credit cards for American Flyers to use to collect Airline miles such as AAdvantage. Buying Bitcoin with these cards could also help you hit your spend reward bonus. For example, the Citi AAdvantage Executive World Elite Mastercard currently offers a limited time bonus of 75,000 American Airlines AAdvantage miles after you spend $7,500 in the first three months.

I am based in the UK and I buy Bitcoin using my Lloyds Avios MasterCard which earns me 1 Avios for every £5 spent. This rate is not going to get me a first class flight to the US, but it does help boost my Avios balance which enables my travels. At the moment, the upward trend of Bitcoin is helping fund my luxury travel too and you can already pay for your luxury hotel stays with Bitcoin at a Relais & Châteaux property.

Is Buying Bitcoin A Risk?

Unfortunately Yes. Any investment is a risk and can go down. I was always advised that you should never invest anything that you can not afford to lose. But as I have said previously; So often in life, the risk is in fact, not taking the risk. Remember, there will only ever be 21 million Bitcoin and it is very possible that in a few years, buying a whole Bitcoin will be completely unaffordable. I have rolled the Bitcoin dice. Since I joined I have made 50% and wish I had originally put a much larger amount of cash in.

When Should I Buy Bitcoin?

The general consensus is that Bitcoin will keep rising, and fast. But the future is guesswork and if we all had a crystal ball we would all have bought bitcoin at least 2 years ago. A wise man once said, there are two best times to plant a tree. The best time was 20 years ago. The second best time is now.