If you haven't heard, a few months ago, it was reported that Bitcoin surpassed the price of gold per ounce. Gold is currently in the $1200 to $1300 range.
A few days ago, bitcoin hit the $3,000 mark, but has pulled back to the $2400 to $2600 range (at the time of this post).
What the hell is going on? I hope to answer this question shortly.
But other crypto currencies have been on the rise - like a skyrocket!
The second most-popular crypto currency is Ethereum.
I got caught up in the insanity. About a month ago I jumped in. At that time I got a few Ethereums for about $95 and I continued to buy some on the ride up to about $260 each. And just recently the price hit over $400, but has since pulled back to the $340 to $360 range. (If you're not reading this post on the same day I wrote it, no telling what the price is now!)
But there are many others, and you can see the current top 100 cryptos here:
I bought some dogecoin, mooncoin, STEEM, Litecoin, Verge, Digibyte and Pivix, to name a few!
So far my investment, in a short time is up about 75%. No, I wasn't one of the early birds who made 6 or 7 figures. Not yet anyway.
Then I saw that Dennis Rodman, in the news, was going on a trip to North Korea, to see the little fat boy (Kim Jong Un-Dun or something like that), and Rodman was wearing a PotCoin (crypto) T-shirt. I think I read that PotCoin was sponsoring his trip - or maybe he has a big investment in PotCoin. And probably pot too.
And I've been hearing more and more about Bitcoin and other crypto currencies in the mainstream news and media. One story I or read was that Putin (as in the President of Russia) was talking about Ethereum... I'm guessing people everywhere and even global leaders - are looking to get out of the "fiat" money trap! You know - the Trillions of dollars the Fed has printed out of thin air, making them worthless, eventually. (BTW, Are you ready for the financial collapse?)
So, now that this crypto-mania is here, people everywhere want a piece of the action.
But what exactly is that "piece of the action?"
Some people are in for fast profits and are day-trading cryptos, as the values can wildly fluctuate up and down. Nothing wrong with that, but that can be very risky.
You might buy low, then sell out, only to try and catch the next dip. The only problem, it might not dip low enough to give you the time to catch that crypto again before it heads back up.
At this point, let me say, I am not a financial advisor, and I am not recommending anyone to buy any type of crypto. But if you do, you should understand you could lose part or all of your investment. So only risk what you're willing to lose, should the worst happen.
If I got into the crypto space three or four months ago, I could have made a LOT of money. But I was a little late to the game. But I'm not saying it's too late either.
Some people (with more knowledge on the subject than me) are predicting bitcoin to hit $5,000, $10,000 and some going as far a predicting $1 Million!
How can this be?
Well, you gotta look at the fact that bitcoin is the first/original, most-trusted, most-widely known and used crypto currency. And there will be a limited number of bitcoin - 21 Million, which makes it extremely rare and limited.
Now, if you study what's happening in the global economy, you might come to the conclusion (as I have) that an economic collapse, disaster or some type of "reset" is likely imminent (as in months to a year or so at most, in my opinion).
People want out of this rigged economy. They want out of a fiat currency that is being devalued, by design, by our "leaders." People want to be free of the house taking a cut of every action in a game in which they control the chips. "We want our own goddamn money!, some might say :-)"
Some people are playing the crypto game and then talking about cashing out for dollars. You know... fiat paper with some ink on it backed by absolutely nothing.
That's why some people buy gold, silver, artworks, farm land, a box of hammers... anything that will retain value!
I think the people who play the game to "cash" out don't fully understand "the game."
It's not a stock market. It's not a fad or a casino game, although you could play it that way.
I think it's more of a transition to a new financial system.
Crypto currencies may actually become the replacement for the US Dollar.
So when I buy cryptos, its not to "make" money. It's to make the transition before my money gets transitioned into something not quite as valuable.
I buy to hold.
From everything I've seen, Bitcoin might be the safest bet. Secondly it could be Ethereum.
People are calling Bitcoin the "gold standard," and Ethereum, the silver.
I think there are other quality, fairly safe bets, such as Litecoin, Dogecoin and Dash. Although I don't own any Dash.
I've got some of the cheap couple-of-cent and less coins, such as digibyte, bytecoin, mooncoin and dogecoin. At this point, I think dogecoin is a safe coin, but the value may take a while to go up, since there are so many of those ... over 100 Billion! Dogecoin was recently like 3-tenths of a cent, and I'm hoping it will hit two to five cents within a year, maybe.
So, before I get too far off track, my opinion of why crypto currencies have been zooming is that people are trying to find a safe place to put their money. I'm not saying crypto currencies are safe. But you've got to wonder how safe your money is in the stock market or in a bank account.
In my opinion, silver is a great investment. And crypto currencies might be the currency of the future. But beware! Many crypto currencies may be risky. But crypto currencies may be the best opportunity you'll have in your lifetime!
Do the research. Go to Youtube and watch tutorials on crypto wallets and the pros and cons of any individual crypto you might want to acquire, in exchange for fiat currency (US Dollars). Research each crypto and look to see if they've got a website and unique, practical-use product or service. Does it make sense? Do they have a forum / community, etc.?
If there is an imminent crash in the stock markets, and if the banks start to fail (as in Spain, Europe, etc.), and if other economic events happen (hyperinflation), then the number of people that are heading into the crypto space may be unimaginable. So at that point, I'll start to understand that bitcoin could easily hit $10,000 and higher. Ethereum could hit $1000 and much higher, potentially. And some of the others may follow as the rising tide may lift others. But some people are predicting some crypto currencies may fail and eventually be worthless - so BE CAREFUL!
Anyway, that's just my two bits.