More Proof the Bitcoin Bubble May Be About to Burst

Cameron and Tyler Winklevoss are at it again. Only this time, they want to create what amounts to an exchange-traded fund, or ETF, for investing in Bitcoins. Frightened? You should be, says Fool contributor Tim Beyers.

To be fair, the Winklevoss twins aren't the only ones trying to cash in on the Bitcoin bubble. Lamassu Bitcoin Ventures has built an ATM it calls the "Bitcoin Machine" that transforms currency from any of 200 or so countries into Bitcoins on the spot.

Some 60 distributors have already expressed interest in the device. Meanwhile, the market for the digital currency gets weirder by the day.  An accused scammer recently tried to dodge SEC charges by claiming the Bitcoin "bank" he ran didn't actually deal in real money. A federal judge has since deemed Bitcoins to be as real as cash.

Just don't let that be an excuse to buy into the Winklevoss' ETF, Tim says. There are better alternatives. In the following video, he lays out the case for a stock poised to profit handsomely from the long, slow switch from cash to digital substitutes. Please watch to get the details, and then, using the comments box below, weigh in with your own ideas for beating the Bitcoin bubble.

Alternative cash? Crazy investments? The simple truth is, you don't need either to retire rich. Let dividends do the heavy lifting in your portfolio. Our analysts show you how with a list of nine rock-solid dividend stocks you can invest in today. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (6) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 08, 2013, at 7:45 PM, Nipperkin wrote:

    Ha great smear of Bitcoin with no evidence or fact from someone that knows nothing about it...oh and btw, buy these 'rock-solid dividend stocks'...really? Folks, when someone says to buy something, its because they are selling it. Don't believe Tim and his attempt to dump his crappy stocks on you while he is secretly dumping his money in the future of currency, bitcoin.

  • Report this Comment On August 09, 2013, at 12:38 AM, MotleyBurger wrote:

    Always love these snarky, clueless, articles mocking Bitcoin like schoolyard bullies ... yet slightly, strangely accepting Bitcoin at the same time, from these know-it-all investment gurus. It's funny watching you guys start out totally trashing BTC months back, yet watching you slowly start to give it a little bit of credibility as each month goes by. Your chameleon-like ways are truly entertaining to those of us not bogged down in the mire of lack of foresight and big egos. Keep writing these retarded articles implying that only fools would ride the Bitcoin train while simultaneously admitting that hundreds of new companies are building their entire business model around it. All over the entire world. And it ain't just to cash in on a temporary "bubble" either...

  • Report this Comment On August 09, 2013, at 12:41 AM, akcoins wrote:

    This is a very surface-level coverage of old Bitcoin news that was scraped together with a few google searches. Another headline grabber article.

    Bitcoin is real to the people who have adopted it and used it as currency. Real goods and services are transacted using Bitcoin.

    Bitcoin has a market cap of $1,084,177,887 US Dollars. That is $1 billion dollars just to be clear. Each day over 700,000 BTC are exchanged. That is around $75 million dollars worth of Bitcoin transactions. These numbers are growing everyday along with the number of merchants accepting the "crypto currency."

    We happen to be one of these Bitcoin merchants. We are AK Coins, an online precious metals dealer. Customers can purchase gold and silver coins and bars using bitcoins. Although we also accept more traditional forms of payment, we prefer the convenience of using bitcoin.

    If you invest in precious metals, check out our latest bullion prices and inventory at http://www.akcoins.com

  • Report this Comment On August 09, 2013, at 11:56 AM, OEUoe wrote:

    I'm growing really tired of this ill-researched Bitcoin-bashing. The author does not present any kind of logical argument to support his baseless smear campaign. What's even worse, this article is nothing new, it's just a regurgitation of similar Bitcoin-bashing that appeared on Fool many times already.

    Really disappointed at quality of Fool research by now. One more article like this and I'll probably cancel my Fool subscription.

  • Report this Comment On September 02, 2013, at 6:28 AM, madtechtrading wrote:

    Get a clue. Bitcoin makes all current payment & monetary systems obsolete.

    Immune from currency debasmement.

    Immune from Bank Failure

    Immune from Sovereign Default

    Theft and fraud of Bitcoin will soon be eliminated - the forensic software tools to do this are now being created by forensic software companies.

    The same author is also recommending we ditch digital camera's and go back to film , ditch e-mail and go back to snail-mail , ditch colour LCD TV's for Bakerlite radio's.

    It's impossible to stop the future. Bitcoin is the future of Money. Wise up - it's on record that you do not have a clue of the transformation which is happening here.

  • Report this Comment On October 23, 2013, at 11:09 AM, BitBubble wrote:

    Hey, you were a bit early on the bubble talk. What you called a bubble at the time of this article writing is below the new low-buy signals. Idiot.

Add your comment.

DocumentId: 2587153, ~/Articles/ArticleHandler.aspx, 4/17/2014 9:06:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement