The idea of Bitcoin and other Cryptocurrencies have become popular as the value has marched up in the past one year -even though due to the sell-off recently, the market cap of bitcoin and other cryptocurrencies are still at $130b as on today.
Moreover, the market cap of bitcoin is now closer to all gold held by ETFs - this is however very small compared to $7.8 trillion notional value of the world's 187.200 metric tonne of gold.
Bitcoin is just about a tenth the value of the 40,000 tons of yellow metal used for investment as bullion bars and coins - however, bitcoin with a market cap of $62 billion is not very far from gold held ETF's.
Now the main question is that can bitcoin be considered as an investment like gold - well, due to the high volatility it is difficult to say for sure that this token is for investment. The reason being, any new technology is volatile till an intrinsic value is determined by the market forces.
The governments across the globe except Japan, Australia, Canada and Korea are fearing the rapid growth of a decentralized currency. On the other hand, United States, India, Russia are trying to find a solution for cryptocurrency. Hence, the community is fearful of a collapse of crypto currency - today the world population is 7.5billion as on April 2017 whereas crypto investors worldwide are just about 25 million - it cannot be denied that blockchain technology is here to stay. Once proper regulation is enforced all the critics will also join the bandwagon.
At the same time, gold is a safe haven and also an under appreciated asset - due to low volatility.
Investment should be considered in gold now as the geopolitical tensions are growing and as on today there is very less scope of this abating any time in the near future.
China has just given the crypto community an opportunity to buy as whenever there is a crackdown by China it gives a chance to just go and buy - here is China's history of crackdown - between 2003 to 2010 the loans rocketed to over $1 trillion - in 2010 they halted the loan repackaging - the stock market margin funding was also cracked down and then regulated - this was to bring down excessive speculation.
If we look at the history of Chinese regulations on the finance industry, their goal is to largely identify the players and remove the bad ones out from the market - they are not trying to kill the industry - this is temporary and that is the reason why China has given an opportunity to buy.
China is going to be a massive growth in bitcoin and other cryptocurrencies.
Bitcoin, Ethereum, Ripple (XRP), Litecoin, Monero can be bought on declines - as the crackdown by China had resulted in a massive correction in these tokens - however it is very difficult to predict with certainity that the crypto markets are over with the short term bear phase.
The bookbuilding ICO of 1Worldcoin has started with a bonus of 15 percent coins - this bonus offer is valid for another 4 days - it is based on Ethereum platform and the concept is very interesting related to publishing industry - first ICO in Media Sector - partners to the ICO are AmazonWebservices, Cint, Google, AOL (America Online) Hence, can be considered for buying their tokens for creating wealth - below is the link for the token sale, you can copy paste the same on your browser and register.
https://tokensale.1worldonline.com/?ref=5a73defbd093460364f381bd
Gold also can be considered as an opportunity to buy around the current levels as there has been a decent correction from $1360 to the current sub-$1300 level.
Disclaimer: The above is my personal opinion. Kindly do your own research before investing.
Enjoy your weekend, folks!
Cheers!
In case of queries my email id is: contact@fundsmagnet.com
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