Bitcoin has gotten some serious mainstream media attention recently. CNBC has given Bitcoin an entire week of attention, the Wall Street Journal keeps featuring Bitcoin on the front page and in OpEds, and almost every other site is starting to cover Bitcoin too because guess what – that’s where the eyeballs are!
Unfortunately, I’ve noticed some scary side effects from this phenomenon. Most notably, people I would NEVER expect to have any idea what Bitcoin is have started asking my opinion on it. And the reality is, most of them want to know if they should be investing or not – many of these same people haven’t invested a dime in their lives!
We’re seeing more celebrities mention it, more sellouts like myself attempt to take advantage of the hype and even more outrageous price predictions. We really are partying like it’s 1999. But my question to you all is it really like 1999?
I still think we got some steam left in this bubble – a few months at least. I suspect this because I know many people are waiting on the sidelines for a dip. I wonder if it’ll pop before an ETF is approved now, while previously my thought was that it’d be roughly 2019 before it popped. I originally thought that if an ETF is approved in 2018, about a year following its approval, we’d see the majority of capital for Bitcoin dry up. At that point, a dip can turn into a correction into a bear market.
However, Bitcoin accelerated way beyond my (and anyone else’s) expectations. As such, the probability of the bubble popping next year has greatly accelerated along with it. The timeline for the bubble popping may have just been shortened with all the activity and buzz we’ve seen lately. On the flip side, it’s still mostly a ‘buzz’ word – not truly mainstream. Most people are just watching it, meaning there is still plenty of capital to attract. What do you think the timeline will be?
And for those still thinking it’s not a bubble, even /r/Bitcoin had a pinned thread saying to invest responsibly at $10k saying it’s likely a bubble! Coinbase recently did some CYA to protect themselves from lawsuits too. And expect more companies to do that in the near future as well.
Let me know your thoughts in the comments below.
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My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
Ledger Nano S:
Ledger Blue (expensive):
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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