Sceptics Jump on the Bitcoin Bandwagon as the Token Recovers

Bitcoin has been climbing steadily in the past few days. September was a wild ride for those who own bitcoin. The digital token dipped from a high of US$4,950.72, to a low of US$3,226.41. The crypto now trades comfortably above US$4,000.

bitcoin price

Source: Coin Desk

So what’s next for bitcoin? I’m sure there will be more dips and scares for cryptocurrencies in the future. But right now, it would seem bitcoin’s recovery is encouraging more sceptics to convert.  Maybe because buyers are continuing to hold on. Or maybe it’s because there is massive interest in what bitcoin and blockchain technology could do for countless industries.

One of these converts is Roy Sebag of the precious metals investment firm, Goldmoney Inc.

Sebag first dumped millions of dollars in bitcoins, calling the digital money a bubble. But now he wants to sell you cryptocurrency trading and storage services.

As reported by Bloomberg:

Sebag, who had originally named his Toronto-based company BitGold Inc.when it was founded in 2014, claims he’s not back-tracking. He’s bearish because he expects regulation to weigh on prices as the market matures. Cryptocurrencies fell in overnight trading after South Korea banned initial coin offerings.

‘“For the industry to succeed, it needs to be regulated, and once it is, prices won’t go up like this anymore,” Sebag said in an interview. “What we’re saying is, you guys want this industry to grow up? Then it needs to have standards, it’s got to be auditable and insurable. What I’m excited about is moving the industry in the right direction.”

Bitcoin to the Mainstream

Other companies are also stepping up efforts to bring bitcoin to the mainstream. Bloomberg continues:

Bitcoin’s meteoric rise this year is attracting tons of attention, but most institutional investors are staying on the sidelines as cryptocurrencies are too volatile and don’t have the safeguards that most financial assets do. Some companies are stepping up efforts to bring the market to the mainstream, opening regulated exchanges, creating futures contracts, and attempting to list exchange traded funds. Goldmoney’s is the latest in these forays.

Goldmoney shares jumped as much as 20% after their announcement on Thursday — another sign of just how bullish investors are on cryptocurrency.

The company has offered investors the option of exchanging bitcoin for precious metals since 2014. Its cryptocurrency holdings got as large as US$10 million in the second quarter, when Sebag decided to sell. Bitcoin was trading at around $3,000. The firm has since accumulated around US$5 million as clients exchange their bitcoin.

So if you want to miss out, but want to know a little bit more about the basics of bitcoin, click here.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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