Bitcoin just went through $17,000 and is now within striking distance of its all-time high around $20,000.
Like all success, Bitcoin’s rise has many fathers. There is trouble: Covid; Hong Kong; change of government in the U.S. and Chinese tech oligarchs under fire at home/the Ant Group IPO debacle.
There is a wildly held belief that an inflationary comeuppance set off by all the Covid bailouts is on its way.
The “halvening,” which occurred earlier this year cut new supply of bitcoin in half. Ethereum DeFi projects are sucking bitcoin into inaccessible vaults on the Ethereum blockchain so bitcoin can earn interest for their owners.
General acceptance, typified by PayPal’s
This is what is driving bitcoin and crypto in general and these and other processes combine to make it a brand and financial asset juggernaut.
Here is the chart I drew only a few days ago:
It’s a bold prediction but it is meant to be more of a guide to what might happen if this is 2017 all over again. I drew this three days and $1,200 ago, when the price was $15,832, and bitcoin remains on this ballistic trajectory.
Now this prediction is not fate but the long-term future of cryptocurrencies and blockchain is simply revolutionary, and its potential seems to grow by the day as more and more young brilliant minds reveal innovations.
Barring an asteroid hitting our planet, blockchain, associated technologies and methodologies will create untold trillions in wealth and value in the coming years, and right now bitcoin is worth just $300 billion, just two-thirds of a Tesla
So what is an investor to do?
I can’t stress this enough. You need to deep dive cryptocurrency. You need to “get it” rather than grab some and pray. This is just the beginning of something long term and revolutionary.
It’s like looking at Microsoft
This is where there are fortunes to be made because most people are going to come late to the blockchain/bitcoin party, clueless and naive. They will get burnt, they always do. They will then retreat and possibly never come back to the market. Just like those burnt in the dotcom, the skill-less will miss out on getting rich over ten years because they tried to make a lot of money in ten weeks. However, anyone who studied the subject is highly likely to ride through the noise and make a fortune.
So my advice is study crypto, play with small amounts of it, be that bitcoin or ether or others tokens and coins, then ease your way into these hot, choppy investment waters. You may miss bitcoin $40,000 but there will be no end of such opportunities coming to crypto and with skill and work you will catch as many as you need. This is just the very beginning.
Meanwhile hodl! And if you think that’s a misspelling, like my spelling checker does, buy some books on crypto (and read them) before taking the plunge.
Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.