Bitcoin Expert Kirsch Pushes Virtual Currency: Onsite Coverage

Cointrust07 July 2014 / Credit Union Times – SAN FRANCISCO – Steve Kirsch, CEO of Cointrust, said he has made money every year on his bitcoin investment of $1 million.

“I’ve wired $1 million to Slovenia. It does show up at the other end,” said Kirsch at America’s Credit Union Conference on Thursday.

“You have to be willing to take a risk to get involved. You might find it’s the best investment of all time,” he added.

According to Kirsch, only 21 million bitcoins will be produced. He said the most important aspect of bitcoin to remember is the current value is set by supply and demand.

“It’s kind of an arbitrary number – 13 million have already been used,” he said.

“It’s not until 2025 when all bitcoins will be used. They keep slowing the rate of issuance,” he said.

Kirsch laid out a series of facts about bitcoin during his breakout session, including:

  • Bitcoin is a common global currency not controlled by governments.
  • Bitcoin with an uppercase B refers to the technology of mining and digitally signed coins while bitcoin with a lowercase b refers to the virtual currency.
  • All funds are kept on computers by programmers called data minors.
  • 1 bitcoin (BTC) is currently valued at $650.
  • With bitcoin, Kirsch said there are no chargebacks.
  • As a virtual currency, bitcoin has faced many challenges, which have prevented it from moving mainstream, such as volatile pricing and trust issues.
  • If you invest in bitcoin, you receive a private key.
  • If the key is lost, Kirsch said you would lose your entire investment. “You’re screwed,” he added. Kirsch said most people do not trust themselves to store the private key.
  • The IRS currently treats bitcoin investments as property.
  • According to Kirsch, if you bought a bitcoin for $650, sold it for $750 but did not report it to the IRS, there is a chance the IRS might find out and you could end up in jail.

Kirsch encouraged the audience to invest $10 in bitcoin to see how it works. Almost zero members of the audience raised their hand when he asked if they would like to get involved….. Read more

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