In the past few months I have written several posts warning about the dangers of Bitcoin and other Cryptocurrencies:
Now it has been announced that Visa and Mastercard will be adding new credit card fees for purchasing Bitcoin and other Cryptocurrencies on exchange sites like Coinbase. If you want to buy a cryptocurrency instantly you have to use a credit card. Otherwise, you have to use a bank account which takes several days to clear.
Summary of Fees:
- New. 5% Cryptocurrency Fee
- New. Cash Advance (up to 25.99% interest effective immediately, compounding daily)
- Existing 4% Credit Card Transaction Fee
This means that buying cryptocurrencies has gotten very expensive. A $10,000 Bitcoin purchase on Coinbase will now cost $900 in fees and $216 in interest totaling $1,116. Therefore you would be wasting 11% on your speculation.
Compare this to buying stock worth $10,000 on Fidelity which costs $4.95 in commission fees or 0.0495% of your investment.
Summary. Bitcoin prices went parabolic at the end of 2017 and have started crashing in 2018. Jamie Dimon and Warren Buffett have warned about buying Bitcoin. The credit card companies have made it more expensive to buy Bitcoin. My guess is that governments around the world will eventually make it harder or illegal to buy Bitcoin and other Cryptocurrencies.