Crypto Mania

Crypto has suddenly hit the mainstream with institutional investors driving prices to record highs. Can it last or is it too late to get on board?

Crypto Mania

Sometimes you get a little lucky. Or maybe that should be you get lucky with your timing!

There is a difference when it comes to investing. Doing appropriate research and knowing why you are investing in something isn't luck. However making that investment just a few days before it starts to double in price is getting lucky.

That's what has happened with the Bitcoin and crypto investments I made and wrote about on this site back in July.  You may recall that I purchased a basket of crypto currencies with a much larger weighting in Bitcoin than the others.

The choices were researched but from the perspective of a novice in this space. Admitting you don't know what you don't know means you are making an educated guess in some decisions.  I still can't explain to you where each of them will go and why,  but I do understand a lot more about the attraction of the Bitcoin trade.

Things in the world are wild and uncertain. Money is being printed like never before and Bitcoin is coming to be recognised as a global store of value that cannot be debased. It is unlikely to ever be a transactional digital coin, much like gold isn't used to purchase items. Rather they are both considered a universal measure of relative value.

Clearly some of the biggest and boldest investors on the planet have come to a similar conclusion and have put their money behind their ideas. Investments ranging from hundreds of millions to over a billion dollars have been made by these institutional giants.

I suspect that party is only getting started as more will try to get in on this game-changing technology.

That doesn't mean the ride is going to be all one way. Bitcoin and other crypto will likely continue to be super volatile but over the longer term people are very optimistic about where prices will go.

Of course, every investor dreams of having the massive windfall profit and it is important not to get carried away with exuberance but the fundamentals for large price gains are still good.

Bitcoin is scarce, divisible, non-dilutable and has no counter party risk. The early adopters have made massive amounts of money and now the second wave of investors are entering the market. Next will come the retail market and as they chase fewer and fewer coins, prices will most likely rise strongly.

That's not an investment recommendation, just a sense of how I see things progressing.

If some of the price predictions are correct (BTC $100K next year and $500K over next decade) this is the potential trade of a lifetime for many.  It could also all come to nothing so be very careful if you do decide to get involved.

Anyway, here's how the crypto portfolio has performed thus far.  

Crypto 1:  +63.6%
Crypto 2:  +123.7%
Crypto 3:  +195.1%
Crypto 4:  +149.3%
Crypto 5:  - 28.0%

Please consider that I have made continuing purchases of Bitcoin (not the others) over the past six months - mostly at higher prices than the initial purchase. At a purely initial Bitcoin investment the original purchase is up well over 100%.

It's also worth noting that one of the Crypto currency investments is showing a negative return. That's what I mean by some of this being educated guesswork!

I purchase my crypto currencies through EasyCrypto. They have been great to deal with and have already helped a number of Confidential subscribers. I have no hesitation in recommending them if you'd like to dip your investment toe in the crypto pool.

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