Cryptocurrency, a once-in-a-generation opportunity

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The Bitcoin price has exploded over the last few weeks again capturing the attention of some of the world’s biggest investors and traders. Bitcoin began the year at under $4,000 per bitcoin, soaring to over $9,200 at the beginning of this week and showing little signs of slowing. Now bitcoin traders and investors have their sights firmly set on the psychological $10,000 per bitcoin mark. This is up 120% just this year and causing many to predict a potential return to the all-time highs seen at the tail end of 2017. 

The bitcoin and cryptocurrency sector has been celebrating a raft of positive news all this week, from retail adoption to legendary investor support. Bitcoin and cryptocurrency technical data is also showing the bitcoin price heading higher, with well-known bitcoin trader Eric Choe saying he expects the digital token to reach $22,600 sometime in 2020, which would be a fresh bitcoin all-time high.  This is conservative, with many experts putting the number as high as $100,000 per coin.

Trading veteran Glen Goodman, who successfully profited from shorting stocks and shares during the 2008 global financial crisis, has branded the rise of bitcoin and cryptocurrencies a “once-in-a-generation” investor opportunity and called on people to “grab it with both hands.” 

Goodman’s book, The Crypto Trader, comes as the bitcoin and cryptocurrency market is keenly awaiting institutional investment in the fledgling industry, with the world’s biggest technology companies, including social media giants Facebook and Twitter, eyeing bitcoin and crypto as a potential new revenue driver. Jack Dorsey, the chief executive of Twitter, is taking further steps toward incorporating bitcoin and cryptocurrencies into his payments business, Square.  Square has said it plans to “improve money” though its bitcoin and crypto development, with many bitcoin and cryptocurrency investors hoping Square will lead a wave of fresh bitcoin adoption.

The bitcoin and cryptocurrency sector is still recovering from a bitter bear market throughout 2018, with many major cryptocurrencies losing around 90% of their value. Bitcoin and most other major cryptocurrencies soared throughout 2017, with bitcoin rising from under $1,000 per bitcoin to almost $20,000 in under 12 months.  Last year’s sudden downturn in the bitcoin and cryptocurrency market was branded crypto winter for its debilitating effect on the industry, with many newly founded crypto businesses forced to cut costs and fire staff to survive the turbulence. 

A multi-billion-dollar market has arisen from nothing in less than a decade. Huge fortunes have been made. The wider bitcoin and cryptocurrency market is now worth some $400 billion, with bitcoin, by far the largest cryptocurrency by both usage and value, making up around $170 billion of that.  The bitcoin and cryptocurrency market, which has attracted scorn from some quarters of the traditional financial and investment industry has won over some supporters recently.

Mark Mobius, the cofounder of Mobius Capital Partners and a legendary investor who once branded bitcoin a “real fraud”, said earlier this month that bitcoin and cryptocurrencies will be “alive and well” in the future. Another positive is Facebook, Inc.’s new digital currency, for which the social media giant plans to release a white paper next Friday.  The “Facebook coin announcement” will “likely have a positive effect on prices as it brings more awareness and adoption of digital currencies and bitcoin to everyday people.  

Analysts also mentioned the latest news from Bakkt, which recently announced plans to begin testing of bitcoin futures that will be listed, traded and cleared by Intercontinental Exchange, the parent company of both Bakkt and The New York Stock Exchange.  This will  help provide greater certainty surrounding the launch of Bakkt. 

Bitcoin bulls are also getting excited due to the closely watched so-called bitcoin halvening event, where the number of bitcoins awarded to miners for mining new bitcoin blocks will drop from 12.5 bitcoin to 6.25 bitcoin, now just under one year away.  The start of the year-long count down has caused some analysts to predict a return to bitcoin’s all-time highs is just around the corner. 

I have been saying now for several years to put 25% of your portfolio into crypto, even if its just a fraction of a bitcoin.  

My bank has “24 Hour Banking”.  I had to change banks because I don’t have that much time