Bitcoin - The End Of The Beginning

Authored by Ian King via BanyanHill.com,

Bitcoin surged a mind-blowing 1,500% last year, leading many experts to call for “the end of bitcoin.”

But this rally isn’t over yet.

This isn’t the end; it’s only the end of the beginning for cryptocurrency markets.

Everyone has heard of bitcoin.

But few people own it. Even fewer understand it.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180108_btc.jpg

That’s going to change in 2018.

Author Malcolm Gladwell defines “the tipping point” as “the moment of critical mass, the threshold, the boiling point” in which “ideas and products and messages and behaviors spread like viruses.”

Crypto assets reached this tipping point in 2017.

Bellwether crypto bitcoin surged nearly 1,500%, and total market cap of the crypto space surged from $18 billion at the start of the year to over $600 billion.

But while bitcoin put in a stellar year, that doesn’t mean Main Street investors have missed the boat yet. 2018 makes the perfect time to jump into cryptocurrencies…

The Crypto Game Has Changed

In just nine years, crypto assets have ballooned from a tiny project among libertarian-minded cryptography experts to a global phenomenon.

Corporations and governments are hiring blockchain experts to figure out how to integrate this new technology into their existing businesses.

Expectations for the future of this new asset class range from the Holy Grail that replaces all middlemen on transactions (including banks and governments) to the world’s greatest Ponzi scheme orchestrated by state-sponsored actors in North Korea.

However, I believe investing in bitcoin in 2018 is actually a safer bet than it was two years ago. While the same astronomical returns might not repeat, the risk of total loss has been dramatically reduced.

Easier Trading

One of the keys to opening up growth in this sector is simplifying access to new investors. Apps such as Coinbase make buying and selling bitcoin much easier than before.

Coinbase replaced YouTube as the most downloaded app on iTunes. With a few swipes and taps, investors can now swap their dollars for bitcoin, Ethereum, Bitcoin Cash and Litecoin. You can buy bitcoin from the comfort of your couch or while watching your 8-year-old’s soccer game. The market is open 24/7/365.

Globally, there are roughly 30 million bitcoin wallets open. However, many crypto investors own more than a few, so the number of people who actually own bitcoin is likely closer to 10 million.

While there has been rampant growth in wallets in recent months, investors haven’t emptied out their savings and brokerage accounts into the crypto universe. Out of those 30 million wallets, only 3 million contain more than $1,000 in bitcoin, and only 1 million contain more than $10,000 in bitcoin.

Keep in mind the total crypto market cap at $800 billion is just 0.3% of the $215 trillion in total assets globally. There is still ample room for this market to grow as more investors open accounts.

No speculative mania has ever been easier for everyone in the world to participate in than the crypto markets, yet this would qualify as the most underowned, concentrated bubble in history.

Beating Wall Street

Main Street investors have been watching from the sidelines for too many great opportunities while Wall Street and the investing elite have prospered.

Take the case of Facebook.

While shares of Facebook Inc. (Nasdaq: FB) have risen 355% since its 2012 initial public offering (IPO), early-stage investors were sitting on gains of up to 60,000% before reaching public hands.

Uber now commands a $48 billion private market valuation. This is 12,000 times higher than its original valuation of $4 million.

But not one cent of this increase in value has reached the public. Rather, all the gains have accrued to Silicon Valley insiders and large institutions.

This is not the same with crypto, where everyone has an equal shot of finding the next Uber, Amazon or Google.

Wall Street is just now starting to get involved. The Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) launched bitcoin futures in December, which helps the markets function. Goldman Sachs is launching an institutional crypto trading desk.

This all signals that cryptocurrencies are here to stay, and there is still plenty of money waiting on the sidelines for those who jump in now.

2018 and Beyond

In the last few months, bitcoin and the rest of the crypto world went mainstream. The barriers to entry are gone, and savvy investors now see the potential of this new investment class.

And since institutional money is still en route, this market — and the gains — will only increase.

That’s why I say this marks the end of the beginning. The question is no longer whether bitcoin will be essential to a diversified portfolio. It is now a matter of what percentage you want to own, and what other crypto assets are your best bets.

 

Comments

HillaryOdor rrrr Jan 8, 2018 4:45 PM Permalink

Of course I'm sour.  I live among humans... on Earth... in the 3rd millenium AD...  and with all the delusions that entails, like the delusion that if you throw in the magic word decentralized then your nonexistant information as value currency is some huge leap forward in the history of money.  I have to listen to people actually believing this crap.  Information costs nothing to produce and has no lasting value, not books, not movies, not songs or your secret gay porn collection on your computer, not bitcoin or the thousand other cryptos either.  It's just another enormous misallocation of resources brought about by the state, resources that could have been spent efficiently improving people's lives, not transferring wealth from stupid millenials.

In reply to by rrrr

Teja HillaryOdor Jan 8, 2018 4:28 PM Permalink

Scarce until Asteroid mining starts.

For bitcoin, in contrast, multiplying mining effort does not change the number of bitcoins mined.

And as both the valuation of gold and of bitcoin are a cultural convention (can't eat either), I would say long term point for bitcoin.

Of course the cultural convention assigning value might move from gold to silver, or from bitcoin to gobblecoin. Shit happens. Invest accordingly.

In reply to by HillaryOdor

HillaryOdor GodSpeed_00 Jan 8, 2018 5:03 PM Permalink

Oh, shitcoin, not bitcoin.   

There's a huge HUGE difference right there. 

And that difference is.....  what again? 

It resides in people's delusional heads.  That is all.  Bitcoin cash is far superior functionally to bitcoin core.  Core just has more idiots believing in it for now.  For now.  Enjoy being that idiot while it still has value.  I already sold my worthless information tokens.

It's ironic you can call something trading at $2000+ shit.  You are correct.  It's just surprising you can come to the correct conclusion for once.  Now just extend that very valid logic one token further and you will have discovered the truth.

In reply to by GodSpeed_00

GodSpeed_00 HillaryOdor Jan 8, 2018 8:47 PM Permalink

The difference is vast. If I go to Facebook's website and copy the code, then make a clone on some other servers called "Facebook Plus dot com". Am I now Facebook and worth what Facebook is worth?

Now you're saying you purchased cryptocurrency and sold it. I guess you're also stupid then for investing in nothingness, or maybe you're just mad you sold early and didn't buy more. If I don't believe in something I wouldn't touch it for 10 seconds, so you're just a gambling jackass obviously.

As far as BCASH being "superior". LOL. Stick to PMs retard.

In reply to by HillaryOdor

HillaryOdor wcole225 Jan 8, 2018 7:06 PM Permalink

Unrealized gains are not wealth, especially during a manic bubble period.  If someone accepts a used condom for a house it doesn't mean I am wealthy because I have used condoms.  Even if a popular delusion overtakes humanity and used condoms become the next hot commodity it's not real wealth.  It's a speculative mania.  It has value currently, but it is not wealth because that value is very temporary.  To turn it into wealth you have to sell it or trade it.  A lot of people who think they are wealthy or will be wealthy as they hold their bitcoin to infinity are going to end up broke and in tears when it starts its trend toward its inevitable value of 0.

I rode the ripple train up and now I am in the process of turning this bullshit into real assets.  Sure ripple could go to $10.  It could also go to 10 cents.  It has no real value.  It is not a scarce resource.  It does nothing.  It's not even real.  It's just information.  I want something real and tangible.  Anybody can invent a cryptocurrency.  It's all bullshit.  Only in this controlled distorted economy do you get this kind of nonsense.  If we had sound money there would be no bitcoin.  Even if blockchain came about naturally it would have to be redeemable for real assets or nobody would accept it.

Information is not a scarce resource and it costs nothing to produce.  One day humanity will realize this.  

In reply to by wcole225

wren HillaryOdor Jan 8, 2018 8:21 PM Permalink

Fake wealth? Wealth is an object used in trade of labor. One oz gold currently trades for less than a bar of gold.

I have over $10k in recreational mining equipment, have gold in my safe, and still hold crypto. Sure, crypto can vanish, but since I bought BC it has increased from $2k to $20k. I sold enough BC to get my investment back and will ride it out. I will suffer zero loss but could also still gain.

In reply to by HillaryOdor

wren OldTrooper Jan 8, 2018 10:25 PM Permalink

So all the shitcoiners and tulips out there, I say this. While your gold I'm sure will outlive bitcoin as when the human race dies off, bitcoin will be non-existent and gold is will still be around, I don't care. While I once mocked crypto I flipped and gave it a whirl. I've come out ahead, and now I say this to all you shitcoiners and tulips.

Stupid are the people who don't have vision. Stupid are the people who call people who are increasing their value stupid, but they themselves seeing little or no gain. So the rich crypto people are stupid while your ass still lives in a trailer.

FYI, gold has little benefit either. Sure, it is a great conductor, but that's about it. Sure, it doesn't corrode, so you can shower with it, whoopie. Oh, and it makes a great deepwater fishing weight because it is both heavy and malleable. Oh yea, and it is pretty. That sums up gold.

While we are told that it is a rare resource, there is still plenty to mine. Sure, all the gold ever mined can fit in a 4 bedroom house, but I wonder how many houses it would take to house all of the certificates lying to people telling them they own gold? And, will the central banks ever stop cheating gold? The answer is no.

Now, if all of you naysayers were given the choice to either have a BC given to you or a piece of paper given to you by a bank saying that you own a BC, which would you take? If u dislike BC, u take it and cash it out. Or you hold it. If you took the paper promise from the bank, you're an idiot.

In reply to by OldTrooper

Bondosaurus Rex Appreciated Ch… Jan 8, 2018 4:27 PM Permalink

No... look at the never rusting or decaying record of gold for the last 100 years. Gold per weight can still buy what it could buy 100 years ago. Money stores value. Bitcoin is a unit of account- A digital number. A great technology that will be here a long time. But this is a bubble no matter what item it is. It trades like a bubble. If it was real estate it would be a bubble. If it was gold it wolud be a bubble.

If you made money thank God and cash out while you can. Give some to charity and enjoy life. These dips are characteristic of early money getting out. They leave in just enough to take a loss so the cops don't throw them in jail with the patsy.

In reply to by Appreciated Ch…

Appreciated Ch… Bondosaurus Rex Jan 8, 2018 4:41 PM Permalink

It's funny, he calls me the dumbass but I initially commented metals, NOT SPECIFICALLY gold. The guy can't read. I also don't disagree that crypto is in a bubble right now. People are taking out fucking mortgages to buy crypto for Christ sakes lol. This is the largest bubble the world has ever seen. But there are astronomical amounts of money that can be made in this technology, and I just think it would be unwise to purchase any metal at this time. I actually own metal myself as a hedge, but I haven't purchased in years.

In reply to by Bondosaurus Rex

Aussiekiwi The_Juggernaut Jan 8, 2018 4:38 PM Permalink

Nobody knows where the Crypto currencies will end up, I suspect the dominant crypto currency has not turned up yet, it will be a central bank creation.

Current Crypto's are all just speculation, the value is in the Blockchain technology rather than any existing crypto currency, it is this that is being locked at.

I hope those who had the foresight to buy crypto make an absolute killing though, its not coming out of my pocket.

In reply to by The_Juggernaut