What IS going on in Crypto Currency! Not a question
After Bitcoin surged 1,500% and then corrected down to 14,000 during Christmas week, many mainstream outlets began saying “we told you so” as they declared, “the death of Bitcoin.”
The New Year began and low and behold, Bitcoin is not just still here but growing again.
Coin Investors will agree that there may be a bubble but will tell you this isn’t the end of the bubble; it’s the beginning.
Many people are hearing the buzz about bitcoin. But don’t know how to own it or understand it what to do with it. That however, is starting to change and staring to change quickly.
Bitcoin surged nearly 1,500%, and total market cap of the crypto space surged from $18 billion at the start of the year to over $600 billion. Sounds fantastic until you realize that we are talking about a 250 Trillion Dollar market. It is a very small percentage with a lot of room to grow.
Corporations and governments are hiring blockchain experts to figure out how to integrate this new technology into their existing businesses.
The IRS even has rules to tax it.
Trading is Getting Easier
There are exchanges like Coinbase that are making buying and selling bitcoin easier. Companies have started to help you track your taxable status. Young adults are making money through the buying selling mining and lending of these Coins.
The Coinbase app replaced YouTube as the most downloaded app on iTunes. You can buy bitcoin from anywhere 24/7/365.
After you buy a coin you need to store it in a wallet. It can be software hardware or on paper. If you lose the wallet however, there is no way to recover your funds.
Ii it too late?
The total crypto market cap is $800 billion, this is just 0.3% of the $215 trillion in total assets globally. There is still ample room for this market to grow as more investors open accounts.
Crypto Currency is Revolutionary or Evolutionary
Take a look at traditional investing.
While shares of stock in “traditional” markets have made gains, how much of those gains reach the street. Facebook Inc. (Nasdaq: FB) have risen 355% since its 2012 initial public offering (IPO), early-stage investors were sitting on gains of up to 60,000% before it went public.
Uber now commands a $48 billion private market valuation. This is 12,000 times higher than its original valuation of $4 million.
But not one cent of this increase in value has reaches the public The gains have accrued to Silicon Valley insiders and large institutions.
Crypto is changing the rules. Now everyone has an equal shot of finding the next Uber, Amazon or Google. Governments and Banks, which have the most to fear should be embracing this. It is a world wide phenomena and no one country can stop it.
Wall Street is just now starting to get involved. The Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) launched bitcoin futures in December, which helps the markets function. Goldman Sachs is launching an institutional crypto trading desk.
What does the future hold?
Crypto is going mainstream. Institutional money is just starting to arrive — and the gains — will only increase.
The question is no longer whether bitcoin will become a part of traditional investing, but is now a matter of what percentage you want to own, and what other crypto assets are your best bets.