As I have said since it was 500 per coin, it will go to 1 million or zero in time and meanwhile, somewhere in between. I believe somewhere close to 100,000 is almost fait accompli and that 10,000 is already baked in the cake for certain. I think it is a bit foolish to have NO exposure to this sector because crypto currencies and the blockchain are a whole new investment class on their own with so much potential. They are a new technology as well, they will prove to be internet 2.0 in the future with the currencies being the email and the blockchain being the operating system as a rough model. They are also a hedge against many things, the dollar for sure, even gold itself to some extent although I think they will work in parallel at some point down the road.
I know bitcoin at 7000 is a bit salty, but there are other options besides bitcoin, although you can still buy 10 dollars worth of bitcoin, or any other divisible that you want and I would want a nice basket of the best coins including bitcoin. I think Litecoin is ready to make a big move, presumably higher. If you look at a technical chart, it is trapped in a range that has to resolve itself. It is now around 50-56, and I think will head over 100 quickly. Eventually it should trade at 1/4 the price of bitcoin as that is exactly what it was designed to do coupled with the intent of being better and faster than bitcoin, so it has a long way to go to catch up.
Then there is ripple. It is not loved by some in the crypto world who think it is the bankster coin since many large banks including Central Banks are now partnered with it. In a very simple use case, ripple is more of a Western Union than it is a coin, a clearing house using the blockchain. It is still only .20 cents. I think it will trade at 1/2500 of a bitcoin for a rough valuation, so a ton of opportunity there to get crypto exposure cheaply.
Finally on coins for today, there is Ethereum which hundreds of other cryptos use as the framework for their own existence. Again, not just a coin, but a sort of legal system where you can create a use for it with terms. Lets say that for every dollar you earn, you owe 50% to a partner and vice versa. That can be set up automatically to happen without any need for bookkeeping, a very simple example but you get the idea. It is now trading around 300, and I think it is ready to move like Litecoin very soon. For a valuation, because of its unique contract writing ability, some think it will surpass Bitcoin in value down the road. In the short term, I think over 1000 may happen soon.
I have also written about some blockchain and crypto related stocks like SSC, GHAC, BLKCF, PRELF and BTSC. It is early to say that any of these are locks or blue chip issues, but they do have the potential to be multiples higher down the road. Long time stock investors like Jim Rogers and Frank Giustra are involved with 2 of those mentioned. They are very respected investors who are just now seeing the light of this new sector and are not going to be left behind with no exposure. There are going to be thousands of new companies just starting up or yet to be created and some of the crypto stocks will become as explosive as the better coins themselves.
So many opportunities in this sector and many more to come. Think about the early days during the creation of the internet. At first everybody was talking about Intel and AOL as the place to invest, but things like Amazon and Ebay were just as good or better for the investor and came much later. This is the same situation we have now so if you think you already missed the boat, you are wrong, we are only just getting started.