South Korea isn’t the first nation to consider banning bitcoin, but it could be the most significant. A large portion of bitcoin’s global demand comes from the country. This isn’t the first time that a major government has threatened to ban it. It likely won’t be the last. Years from now, this may be looked back on as an incredible buying opportunity.
It was a future that we saw four years ago. And only recently have we started to reap the rewards. With cutting edge tech there’s no way to know exactly when things will take off. But with the right amount of insight and research, you can get in early enough to be ready for it.
Don’t get me wrong, Buffett is a very smart man. And a very smart investor. But he freely admits that he doesn’t invest where he doesn’t understand. And he freely admits he doesn’t understand bitcoin or cryptocurrencies.
What you need to understand here is very simple. Warren Buffett is an expert in companies and stocks. He’s been around long enough to know a thing or two there. In no way am I challenging his reputation or expertise in traditional markets. But he knows nothing about cryptocurrencies.
You might know that there are various cryptocurrency exchanges all over the world. And depending on investors, prices can differ extremely. Investors in Singapore may value bitcoin higher, giving it a higher price than in the US. One place this has happened in is South Korea.
Computers don’t worry about rationale. They just do what they’re programmed to do, which eventually exacerbates the prevailing trends. But don’t forget, humans program the computers. Human nature is behind all market cycles. It’s just that this cycle is being helped along by the desire to make gains based on unemotional computer generated decisions.
The companies that will really benefit will probably not have the word ‘blockchain’ in their name. They will be companies that can strengthen their position by using the technology. Or by making themselves crucial contributors to the data value chain.
In a recent interview with Fox Business, Dimon said, ‘The blockchain is real.’ He even says he regrets his previous comments. And that he now has ‘concerns’ about how governments will feel about bitcoin ‘when it gets really big’.
CoinMarketCap (CMC) is easily the most well-known aggregate of crypto prices. It’s the closest thing the market has to an index and is frequently cited for up-to-date prices. However overnight, CMC managed to crash the market.
If you bought digital coins in 2017, you would have had a great year. Making more than 12-times your money was as easy as buying a single bitcoin. 2018 might be more of the same.