Well here we are again, cryptonauts; the value of cryptocurrency and the technologies behind it is in dire straights in the mind of the public. We know by now that much of the rip up in 2018 was partly attributed to blind speculation from the misinformed but mostly because of extreme manipulation in multiple exchanges via Tether.
We know that blockchain is a viable and useful technology. But how will the technology ultimately be utilized? What coins and technology subsets will prevail? How long does a paper fiat world take to transition to electronic digital? Are we asking the right questions?
I don't think so.
These points are ultimately moot. Crypto currency and blockchain technology is here to stay and we will see a grand transition in our lifetimes to digital assets! By holding cryptos and precious metals through extreme economic changes, we are sure to position ourselves to properly predict major action and react accordingly.
It goes without saying that investment diversification is more important than ever. We are truly entering uncharted financial territory and many, many people are taking notice and reacting in ways that may surprise even the most seasoned of socio-economic analysts. There is growing interest in the newest (and oldest) investment vehicles as the traditional "safe havens", like government bonds, are surely crumbling beneath our feet.
During these incredible and historic times, we should be placing funds in two major positions. The first should consist of long-term fundamental investments in stable asset classes like energy, food production, transportation and physical precious metals. The second should consist of short-term and more liquid assets such as cryptos and cash funds that are able to position you towards the major changes that are occurring.
One way to ensure that you are able to purchase and sell cryptos particularly is to hold some of your digital assets in a secure software wallet and store your private keys separately. Additionally, some diversified currencies (including cash funds) should be kept on a major exchange as you watch and wait for proper times to utilize those funds. Exchanges like GDAX are a great way to hold and move smaller amounts of digital currency while you position yourself. Of course, one needs to understand the risk of short-term trading; holding assets on an exchange puts your funds at risk during a major crash but also allows those funds to counter act your long-term investments, if necessary.
Ultimately, cryptocurrency will be worth exactly what we need it to be worth. The security, quickness and convenience of digital assets will win out. And we will need to embrace this crypto-future whether BTC is worth ten dollars or ten million dollars. Either way, let's stay one step ahead of the game together!