My Take on the Bitcoin Craze
Bitcoin has been on an absolute tear as of late. Its price has surged nearly 770% from last year. Its dollar volume is nearing that of Apple's. Momentum has risen from its recent lamentations by titans in the financial industry, such as Jamie Dimon.
With all the positive things going for Bitcoin, and with its recent spike in popularity, I feel the need to give my take on Bitcoin.
Yes, I know this looks like a textbook bubble ready to burst and bring tears to all who invested in Bitcoin. I know Bitcoin seems like a But something about this appears different. Why? Here's my general perspective of Bitcoin:
-Since bitcoin can be bought to the eighth decimal place, nearly anyone can buy it.
-Bitcoin is decentralized, meaning it is non-government regulated.
-Bitcoin is slowly being adopted as the standard currency for developing nations.
These are just a few highlights, but my last point goes more in depth.
The crypto's main appeal lies in its decentralized model. Most bubbles, such as the Great Recession as well as the Tech crash of 2000, were heavily correlated with government intervention, whether it be too much presence or lack thereof. For instance, the Great Recession was catapulted by poor policy making on the part of the Federal Government (in terms of housing price inflation/cool down periods). However, Bitcoin's rise has nothing to do with Government intervention. Bitcoin's users are every bit responsible for their BTC holdings - since they cannot be tracked - as they are for helping the crypto rise. This mass public-driven growth furthers my idea as to why BTC is not a typical rise.
As I mentioned in my previous article, almost everything physical will become digital, and the dollar is no exception to that policy. Since Bitcoin is a universal currency, anyone with a phone and a Bitcoin wallet can pay each other. This ease of access allows for people around the world to go through a few simple steps and clicks with their phones rather than transferring currencies and all that work.
Essentially, you can view it like this:
Bitcoin is to the dollar as Amazon is to retailers (such as Macy's).
Now, from an investing perspective, it's pretty simple to me:
Buy Bitcoin ASAP.
Bitcoin has seen some unprecedented growth in the past seven years. In fact, just $5 put into Bitcoin in its initial stages (2010) would become a monster $4.6 million today. Personally, I don't see this growth slowing down any time soon for the reasons mentioned above and for the fact that buyers mainly control the price.
When you combine this type of growth times all the positive factors going along for Bitcoin, you get an investment opportunity that is too good to pass up.
Please read my Disclaimer before taking any financial action.