Crypto Current Affairs—Bitcoin Outperforms Stock Market and Gold, But Will This Last?
In a positive news for Bitcoin users and investors, Bitcoin and Bitcoin Investment Trust (GBTC) seem to have left traditional investment instruments such as Gold, Stocks and government bonds in the dust. Bitcoin has had an upside of around 220.59% so far in 2017, tremendously higher than anything traditional investments can hope to match .
In comparison, the S&P 500 and SPDR Gold shares have only managed a single digit 6.13%. However, these returns seem realistic and stable versus the insane pumps witnessed in the crypto world. Bitcoin adoption and tax cuts in Asia-Pacific region in addition to the US Federal Reserve's monetary policies seems to have been one of the many factors leading to Bitcoin's recent rallies.
ICOs have drawn huge attention to the entire cryptocurrency sector where new projects and startups are raising millions of dollars in investment in mere seconds. Tech company stocks such are Tesla and Facebook have been unable to match Bitcoin's pace of growth in it's market cap.
From a report on Yahoo Finance:
Gaining Mainstream Use
Some of the top economies such as Korea, Japan and even India are considering many incredible things from their perspectives, in order to move towards mass adoption of Bitcoin and altcoins. Greater crypto adoption from emerging markets is likely to cause further increase in demand and upward swings in Bitcoin price.
Currency manipulations as we've seen in Venezuela and demonetisation witnessed in India have contributed to the rise in adoption of Bitcoin. Cryptos are becoming a new favourite amongst market speculators and investors previously focused only on traditional, relatively low-risk investments.
US hedge funds are also investing into Bitcoin to combat inflation caused by budgetary deficits. People are starting to consider various cryptos as excellent investment instruments to park their life savings. Did you know that you can also buy Gold using Bitcoin?
Potential Crypto Bubble Looming Over Us?
Remember, all this could ultimately be just a big bubble. But if you consider Bitcoin's history, many skeptics have been saying this over and over again at every Bitcoin market correction. It would be wise to consider the potential of a greater upside to it's price but even as we want Bitcoin to touch $5000 in a month, but it might take longer than that. So it's wise to set expectations realistically.
One must also remember that even Steem price rallied alongside Bitcoin and corrected with Bitcoin's price corrections. Bitcoin rallies and dumps has a direct effect on the entire crypto market cap.
As crypto investors, we must all be prepared with a contingency plan in the event of a cypto bubble burst. What are you doing to mitigate your risks and safeguard your crypto portfolio in the event of such a scenario?
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Exactly!
True that!
I haven't found a way to mitigate crypto risk within crypto. So the obvious solution is not have all your investing funds in crypto.
On another note, I want in on GBTC so bad...but that premium is still crazy! I'm hoping it calms down this month.
how much does the premium stands now GBTC 30% or so
The premium is about 66% right now. Each GTBC share represents around 0.093 Bitcoin. https://grayscale.co/bitcoin-investment-trust/
Yeah crypto is crazy! :) I hope the market correction ends soon!
Hi @firepower, hope steem fest was good.. I am sure you were able to teach may more about steem that were able to attend.
Good price analysis for the correlation between BTC and steem.
In Tony Robbins book ''Money Master The Game'' He talks about asymmetric risk.
The most you will lose if it goes against you $10 but if it goes in your favor you could do 10X or 50X
NEM this year alone has done 4500%
Great comment man! :) Thanks
Japan has adpoted bitcoin as currency and india is going to regulate it. It will defenatiley cause increase in the price of bitcoin.
...and South Korea and Singapore. Lots of momentum!
Well, if we talk about the short, there are two major events in which one has already happened and one is going to happen next month.
First one is South Korea is planning to legalise the Bitcoin and it's somewhat close to make it happen. This will affect positively the Bitcoin pricing. I think it'll give a boost to it in a short term.
Secondly, the soft fork and segwit integration on 1 August. This will be the turning point for the crypto world. After 1 August, either the price of Bitcoin will rise to the moon or it will fall down rapidly.
So, Bitcoin market is voltile indeed but for a seasoned trader, it can be highly profitable and one must invest in Bitcoin or cryptocurrency in general at least this month. There are fairly high chances of Bitcoin pricing going up very soon.
Anyways thanks for sharing the article brother @firepower
Thanks dude! :)
bitcoin all the way, yes, I think it will outlast the rest and as bitcoin goes up in value, the rest of the cryptocurrencies will follow suit as they go mainstream. It's unstoppable now and governments are realizing that as well. So instead of fighting it, many are adopting it. So yes, it will last in my opinion :)
Yeah I think the same!
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Thank you
Hello, good to have you on board. There are a lot of Indians on this platform, you can join the #India chatroom on Steemit.chat and socialize with our awesome community!
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good info!
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This comment has received a 0.08 % upvote from @booster thanks to: @hamzaoui.
I expect Asia to recognize it as a legal payment (Japan already frontrunner).Then European countries, and South American countries. North America will be forfeited for the time being.
Yep! Same here!