Crypto currency, a sure way to lose or make money? With a bit of help this would be the fastest way to make a difference to your life
Table of contents
- Is Crypto currency trading or gambling?
- How do they make money and hold their value
- Is there a better Bitcoin
- If Bitcoin is so good are there others
- Other assets that compare with Bitcoin
- New Trends take years to become established
- Chasing the big growth companies for great profits
- Has the Crypto horse already bolted
- How to invest in the market
- My summary and conclusion
Is Crypto currency trading or gambling?
Hesitancy cost me half a million dollars a hard lesson in any ones life.
A couple of years back I looked at the whole Crypto thing and like nearly everyone else thought that Bitcoin was Overvalued at $3200 and Etherium was a massive $100
I read all the reports and listened to the so called experts instead of using my head.
Crypto Coins and Alt coins are a technology that will change our lives. Like Google or Facebook and even Amazon they have arrived and stayed to dominate the worlds market.
Broadband Internet, Google maps, smart phones and now 5G Mobile networks are changing our world and the crypto market is no different. It is a game changer.
All of the above have seen considerable growth over just a few short years which means that they are a growing asset and something to be considered.
How do they make money and hold their value
We all wondered at Google the free search engine that could not make a dime. At Amazon that sold books, eBay that traded trash, Microsoft that wrote software, Apple that bought smart phones forward and the new kid on the block Tesla and EV technology.
It is funny that these are the top value stocks on the American market.
They bought change and a different future.
Netflix creators went to Blockbuster and tried to sell them on the idea of instant internet entertainment. The smart guys at Blockbuster Laughed at them and sent them packing but who is laughing now.
We are all hesitant at accepting change and The Crypto market is change.
Bitcoin is a value based product for investment activity. It is like virtual Gold or US hard currency (Fiat) except that it is different . Dollar notes depreciate, gold goes where the dollar goes and Black Gold (OIL) is a product of the past.
Smart Contracts that pass between users cut out the middle bogey men ( think Banks) with secure and fast transactions that cost very little.
All sorts of products will pass through smart contracts, Real Estate, Stock, Insurance, Medical records eliminating the need for the middle man.
It is not an if it will happen any more, it is real and it is our future .
Is there a better Bitcoin
First in is always best dressed so it will be very difficult to take the mantle from Bitcoin.
They ( whoever they are ) invented the Block Chain Technology that is driving our future.
People stayed away in their droves as the market went like a roller coaster from a few dollars to $60,000 at its peak.
Things are different. Bit Coin is now predominantly held by institutions who are in it for the long haul. Slowly they have changed there thoughts on the future and have seen the future.
The great Warren Buffet said absolutely not to anything to do with this technology. He was scathing of the whole things for a long time before a little light bulb went on. He has now invested in companies that invest in the crypto market.
Will it go higher?
There is a limited supply of Coin therefore demand will grow with supply thus taking the coin to new heights unfathomable at this time. Will it be $100,000 or a $500,000 coin right through to The magic million dollar return.
Most experts that ignore FUD and rely on figures will tell you at least Five hundred thousand in the next two years.
This is not investment advice, the market could do anything at any time however the pessimist in my sees a bright future.
Crypto currency and what to choose
If Bitcoin is so good are there others
With well over a thousand choices on the market there is ample opportunity to pick winners.
They may well be random like Dodge Coin however even that coin has a following.
Number Two in Line is Etherium a smart contracts option that follows in the shadow of Bitcoin Currently valued at about 7% of Bitcoin price. Therefor a Half a million dollar Bitcoin would see Etherium at $35,000 a long way from the current $3000
Then you have Solana , Cardano and a whole host of supporting infrastructures.
Staying in the top 20 coins will offer some investment security however a spread of a few always helps.
The market is volatile. It will be a roller coaster ride so set a reasonable time for your investment to mature. Yes you can Day trade to pick up quick coin however take a bit of training first.
The option market is for the experts so let's not go there.
Other assets that compare with Bitcoin
The Stock Exchange is the closest comparison to the Crypto Market. In fact many listed companies invest in Crypto as there trading objective. In general the stock market rises year on year as good if not better than any other investment.
Gold Silver and commodities have always been a hedge against inflation however they generally keep pretty well in tandem to inflation.
Fiat currency is what we term dollar notes in any country. Particularly when it is not pegged to a Gold standard. The buying power of a dollar will depreciate as the world appreciates. That is to say in Ten years time the almighty dollar may have buying power of just $ 0.50. Is that a good investment.
Real Estate generally represents long term value particularly when you live in it. Housing goes up with inflation however it can crash at any given time. It rises and falls on demand generated by governments. In fact my last House decreased in value over a ten year period and that did not allow for adjustment in the value of the dollar. A poor investment.
Crypto currency is more than just a trend
New Trends take years to become established
This was the case in years past however times have changed, Companies like Amazon, Google, You tube have had extremely steep uptakes and the latest is Tesla that reached the market in a few short years.
The Crypto market is a product of change. Just about any transaction done will have some link to the blockchain technology. It is currently in its infancy that has years of growth ahead.
You could have been a Millionaire buying Amazon shares. or Google or many other however we all missed the boat by not recognising technology of change.
Where would we be without Google maps, the Internet PayPal, Uber taxis, Netflix to name a few that have made the world entirely a different place.
Crypto currency is the new trend
Chasing the big growth companies for great profits
There will be growth companies that will storm the market with an incredible increase in value generating instant Millionaires. Therefore recognising them early is necessary. Buying at a few dollars and selling at thousands is dream time for most of us. I missed the initial growth I am not going that way again, the market has a long term future.
Just think a Fifty Thousand Investment today could be worth a half a million in two years time.
Where else can you achieve this potential.
It is reasonable sure that the top ten coins will see a bright future and the others require a knowledge of the market or inside information to pick the Rockets.
One telling parameter is market capitalisation. Bitcoin may have a Trillion dollar cap so any coin that you can multiply price by supply needs to be well under this figure.
This is easy to work out by a simple search on Google.
The Stock Market is no different, shares are valued by the return they can generate to the shareholders over time.
Has the Crypto horse already bolted
As I have said it is still early days before the technology of change will increase the market.
There are still a few Bogey men hanging around making noises to scare of the punters.
The Chinese Government, The US feds, Big Banks, running costs, Calamity for-casts are just a few of these hiding in the dark.
It is certain that China will eventually have their own Coin to compete in the market. This will increase competition not decrease value.
Some Government intervention will be welcomed to rid the market of shoddy operators .
The costs of Bitcoin mining came to the fore when Elon Must demanded they must use better technologies that waste of Power and Water. China joined the throng by banning Mining in their country thus forcing immigration of the businesses.
The miners found renewable recourses to run the massive computer farms required in mining and reduced this concern to a past history.
Finally we can never see what something like Covid_19 can do to a world market. There may be other events that can create the same havoc in the future and disrupting a market.
Crypto currency investing
How to invest in the market
First of all you may need more than one broker account. Each Broking house only carries certain coins so you may need to open several. I use eToro as my main account and FTX for Cardano and Coinbase for others. Binanc is one among many. that have some of the lessor known coins.
Select with care and only choose reputable brokers that come with high recommendations.
Be Very careful of your currency and keep it under lock and Key, In fact invest in a Yubikey to stop all fraudulent activity.
My summary and conclusion
Disruptive technology is changing our world and will continue to do so at a faster and faster rate in our lifetime.
We will see fossil Fuels disappear, a Global Satellite Broadband internet service, 5G Mobile technology that is a one hundred times faster than what we have now.
The race to Space is bringing new dimensions in technology that were thought bubbles a couple of years back.
The humble petrol engine will disappear and transport will be run by green fuels that have little or no contamination to our environment,
World economies will change to Global currencies away from local Fiat to contain deflation
and allow the ease of currency transmitting.
Being in early has been proven time and time again to be the money maker. It may not be quick however it will be positive.
Be disruptive and join the band.
This is not investment advice nor a recommendation
Crypto currency, a sure way to lose or make money by Peter Hanley
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