Crypto Currencies have seen enormous growth in the past few months but will it continue? Although many of these digital currencies have seen tremendous growth they remain highly volatile.
Last summer the price of Bitcoin was around $600. Today the price of a single Bitcoin sits at $2,299.94 as of 11:40 am CST. Why the massive spike in such a short time? Digital currencies have the potential to completely disrupt the central banking system as we know it(I encourage you to do research into fractional reserve banking and quantitive easing) and usher in a new age of how money is created and handled. Many people are finally waking up to this and rushing to buy as quickly as possible. This is why we've seen massive returns in only a short time. An article from a popular financial website stated that if Bitcoin were to have the same valuation as the US Dollar the price of Bitcoin would top $1,000,000. Of course I don't personally see Bitcoin going to $1,000,000 anytime soon but it does have the potential to reach $10,000-$15,000 in the next 5 years respectively.
What does this mean for us as investors and guys just trying to make money? Well if you've read my previous posts you know I have profitable holdings in Puma Biotechnologies as well as Tesla and many more yet to be written about. Bitcoin is not a part of my portfolio and I still don't know why. I started following Bitcoin in 2011 when is was trading for $11 a coin and I kick myself almost weekly for not getting into it then. What I can recommend to you now is to wait for another strong pull back and then get some exposure even if it isn't much. As Warren Buffett always says "you have to buy when everyone else is selling". Bitcoin tends to go through large spikes and dips which always bring the nay sayers of "Bitcoin is going to crash", but always seem to rocket back up and break into new highs.
Bitcoin and other digital currencies will only get larger and more relevant as time goes on. With apple pay and mobile digital transactions becoming the norm, its only time before Bitcoin is the equivalent of a USD. No doubt it still has a long way to go and many hoops to jump through but once it picks up full momentum, watch out. My recommendation is to get into Bitcoin on the next big dip in order to maximize your profit potential. Seeing as it just had a huge past few months we are due for a slight pull back, but, that never lasts. I look forward to updating this post in the coming months and years to discuss where Bitcoin is, was and where its heading in the future.
Thank you for reading! Let me know what you think below in the comments!