The success of Bitcoin and other block chain currencies this year has been nothing but impressive when Bitcoin initially began 9 years at the dark corners of the internet to now what is becoming almost a mainstream followed financial asset.
Over the space of the past 9 trading months, the asset is up over 300%. Any fund manager I know would be pleased with that return. The various participants in trading the crypto currency, Bitcoin, all leading to its success are short term speculators, a confirmed mining community, and long term investors.
The last part is hugely important and resonates with me highly. Bitcoin represents a technology that has a finite amount, importantly in digital form. So unlike fiat currencies, it isn’t affected by central banks printing more money etc. It is this aspect which I think will drive its popularity to the next level. However, caution over the asset is also necessary.
There are certain attributes to the current trading pattern that remind me of the first tech bubble from 1999-2000, and the subsequent fall out from this was huge.
Jordan Hiscott, Chief Trader
The views and content expressed above are the views of the author and do not reflect the views of ayondo markets. This service is for information only and should not be interpreted as investment advice or any recommendation to enter into a financial transaction.