How possible is it that bitcoin will become the next gold? It’s a long shot. Convincing conservative investors to put their money in something extremely volatile will be an extremely tough sell. So where does that leave bitcoin?
Let my error be a reminder that even the best of us can stuff up when moving crypto about. I could easily have not told you this story. I could have kept it to myself. But that serves no purpose. This is a reminder that cryptos are risky. And it’s a risk you need to be aware of, and know how to avoid.
I know that it usually takes losses — big losses — for people to realise the fickle nature of speculative investing. Does this mean I think you can’t make money from trading cryptos? No, of course not. You definitely can. In fact I think there are huge gains still on the table.
I do acknowledge that cryptocurrencies make some people nervous. They change deeply embedded societal structures. They change the fabric of your daily life. The security of certainty. Cryptocurrencies are a move in the direction of freedom. If we are willing to pay the price.
Money follows returns. And the highest returns right now are in bitcoin and blockchain technology. But rather than putting money into bitcoin, I believe funds should focus on blockchain.
Bitcoin is a finite, tradeable commodity that becomes progressively harder to mine until the supply is exhausted. Very few tradeable commodities are finite. You could argue that gold is not truly finite.
In the past every article was dismissive of bitcoin and cryptocurrencies. ‘A fad, a scam, a money laundering exercise…’ Perhaps we’re starting to see the beginnings of a subtle change in the media’s reporting? Who knows? But I bet they still won’t be brave enough to tell you about the hidden cryptos making even bigger gains than bitcoin.
The problem they’ve got is this. The rich can’t buy in to such a ‘small’ market without showing what they are doing this (which would push up prices out of their control). So instead they are trying to make ordinary people write it off, panic sell or fear cryptocurrencies. Or at least not compete with them to buy in. Its economics 101.
Bitcoin price has hit another new high…again. The digital coin surged past US$9,000 yesterday. Investors who’ve held on throughout 2017 are looking at returns of more than 830%!
Bitcoin futures are coming. CME Group Inc. which operates the Chicago Mercantile Exchange, is set to launch bitcoin futures in the fourth quarter of 2017. Due to its popularity, it’s clearly a no brainer.