Crypto Current Affairs—Bitcoin Outperforms Stock Market and Gold, But Will This Last?

in bitcoin •  7 years ago  (edited)

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 .


Source

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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  ·  7 years ago (edited)

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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.

Asymmetric risk is the risk an investor faces when the gain realized from the move of an underlying asset in one direction is significantly different from the loss incurred from its move in the opposite direction.

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!

Hi, I m from India. This post is very interesting one and also I followed u.
I m new to the community and now I m posting some posts. Si please have a look to my posts and encourage me by upvoting my posts if u like them.
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!

I'm making the crypto world friendly and accessible for everyone by explaining acronyms and terms related to cryptocurrency. Here I found:

GBTCThe Grayscale Bitcoin Investment Trust’s shares are the first publicly quoted securities solely invested in and deriving value from the price of bitcoin. GBTC enables investors to gain exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins
CryptoA cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.
ICOInitial Coin Offering is a means of crowdfunding the release of a new cryptocurrency, the tokens being sold to raise money for technical development

Please upvote for visibility. If there are any missing terms here you want to be added to the database, please comment, so I'll become better.

good info!

Well done post You deserve for getting Upvote from me. I appreciate on it and like it so much . Waiting for your latest post. Keep your good work and steeming on. Let's walk to my blog. I have a latest post. Your upvote is high motivation for me. Almost all Steemians do their best on this site. Keep steeming and earning.

Would love to upvote this just as I upvote others but this is just another one of your spammy copy paste messages.. Sad!

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!

@Firepower you asked a very good question: "As crypto investors, we must all be prepared with a contingency plan in the event of a crypto bubble burst. What are you doing to mitigate your risks and safeguard your crypto portfolio in the event of such a scenario?"
Something to think about....but honestly I've never considered that the crypto could be in a bubble. With two teenagers at home (I watch and listen to them),..... I think this is just the beginning.

True that! We've got a long way to go for sure! :)

My only worry is what will the elite do to stop their fiat from failing. Or is that why the SDR is waiting in the wings, cheers mike

Cheers :D

A very good post from you my buddy @firepower . Crypto is where to be and here to stay however we have to diversify in order to be on the safe side ie do not keep all your eggs in one basket. Upvoted.
Feel free to check out my latest post on : Why Steemit will disrup social media and gain market share

Sure will do. Thanks for your comment! :)

you are welcome, thanks.

@firepower Gold is a hard asset that uhh can touch and feel, unlike bitcoins which exist only digitally and electronically.Gold can be used as a medium of exchange anywhere in the world, and it is held by some of the largest financial institutions on the planet.
If you want to allocate part of your holdings to a safe haven asset that has been tried and true for centuries, consider an allocation in physical gold.

Did you know that you can also buy Gold using Bitcoin?

Check out https://www.vaultoro.com/

I don't think bitcoin will reach $5000 anywhere soon either, but it has been a great investment, together with other altcoins, in the past year! Though I was quite new to crypto, even though my husband has been a miner for years, living with 2 people in the house who are in the middle of launching their coin and crypto project got me all excited... and steemit of course too! Learning new things every day and loving it! Exciting times ahead. that's for sure!

Thanks for your comment Amy! I look forward to how this space will be in a year or two from now. :)

I think a healthy pullback is to be expected before we lurch up to something like $5k. The last 3 times that Bitcoin popped up like this, it dumped, levelled off for awhile, then shot up again. I think the smart money is on resisting the fomo and waiting for a price in the $1xxxs again. But what do I know?

Yeah for sure.

cryptocurrencys will run the world :) @firepower

It will for sure! More power to that!

I don't think cryptos are in a bubble yet. The average person doesn't even know what they are! Sure, there will be wild swings, but I plan on holding and adding steadily. Let's see where they're at in a year or two!! These are exciting times for us because we are getting in so early and cheap!

Yes, true that. Only till will tell. I am sure it's going to be very interesting in the near future!

When you invest fiat money into crypto currency, the return of investment is much higher than investing into Stocks or Bonds. It's a now brainier. The higher the risk, the higher the return. Thanks for the information firepower.

Yeah! True that.

Good post, as for mitigating risks I just spread my bets as much as I can and invest in coin with real potential. As a developer I do like to look at the tech as closely as I can and think about how I can use a specific technology myself. It needs practical application. Then it is just about patience, downswings and crashes are simply opportunities to buy more! If you believe in the tech's value the price will usually eventually follow.

Couldn't agree more with you!

Start buying that silver and gold guys! 🙌🏼🙌🏼

Yaay! Go for it!

Sorry @firepower!
I'm not agree that bitcoin/crypto is in a bubble (may be i am wrong)...
Also i invested for a long term (at least for 15 years from now).. And if crypto bubble burst, it will provide me a good opportunity to invest more and diversify more to achieve higher goal from now...

15 years? You are a victim of scammers, at least it sounds like this...

What's wrong with long run?
According to http://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-100000-in-10-years.html

  • Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years, according to Saxo Bank analyst Kay Van-Petersen.

  • Its market capitalization could grow to $1.75 trillion which would make each bitcoin worth $100,000.

The market cap today is just over 100 billion, for the market cap of cryptos to reach 5 trillion is a way long journey. If crypto remains in the current state forever, a 5 Trillion cap could be achievable in 10 years but thats a fantasy. As soon as the crypto market will be regulated by governments of different countries the scenario will change entirely. Its till 2021 we have the opportunity to make millions. Keep some bitcoins for long term, look at investing and trading with ETH, Litecoin, Ripple, ETC, DASH and a few more electives from the top 10 on coinmarketcap and keep making bitcoins and occasionally sell some to keep your fiat secured. If BTC reaches $100,000, not sure how much you hold but I will be a billionaire! Lol

Indeed! :)

Indian's govt is a bit slow actually they're dumb
They'll get to know but it will take time
And yes japan is more advanced They know what to do on correct time
Thank you for sharing @firepower

India will take some time but eventually will get there. I hope!

Blockchain rules and will be ruling. I think though that bitcoin will be replaced by other coin, as it is not the perfect one.

Cannot really say much on that!

The way I look at it is, as the adoption is rapid and supply is limited, its not a bubble anymore, its BAU for bitcoin trading and it has no other path but to grow.

Thats how trades work. Any speculations are outlandish.

Yeah! I guess so!

Still many people are unaware of Bitcoin, so one can imagine how much the value of bitcoin would increase after people become aware about it.

True that!

Nice post, a lot of work there. Good job and thanks for theses informations.

I'm new on Steemit, and I want to share my travels over Europe :) If you can take a look, I'd be glad :)

Thanks!

A crash will come, though I don't think it will be the cryptos crashing.

haha yeah! I wonder what that could be.

I want to BTC implemented by Alibaba and Amazon. Then I want to see a few financial institutions die. Then that is when I know my BTC investment will really pay dividends

Hope things turn out the same for you!

Great Post again as usual . i liked it, voted, looke at my wall my own personals.

Thank you!

To mitigate the risks, if you'll agree with me @firepower I'll advise crypto investors always remember USDT. it works like magic😀

Yah, that sounds good!

great article.. thanks

Thanks!

A lot of speculation about BTC recently.

Yeah, there are more!

Great Article. This is my opinion on Alt Coins. aka the small coins!

https://steemit.com/cryptocurrency/@jrose1010/cryptos-most-undervalued-coins

Thanks!

Perhaps it's a bubble, but no one knows at what price it will burst. In theory, it can be inflated to the very highest price.

Probably! Time will tell! It has a very bright future.

i just read somewhere it will touch $10000 in 2 years . is it possible ?

You never know! Let's just hope for the best!

nice post and i know the bitcoin could be hero

Thanks! Yes, it will.

Cryptocurrency is the future, nothing more to add! Everyone will accept it all over the world sooner or later!

Couldn't agree more to it!

They keep doubting it, attacking it, laughing at it, & now they have no choice but to invest in it! So who's laughin now?

Haha! yes!!

yes this will last, this community is growing fast every day and news media coverage and business interest in bitcoin is driving investors into this market, as well as governments wanting to regulate bitcoin, shows that it holds real value.

True that!

When the fiat system finally collapses those holding gold, silver, and cryptos will be the last ones standing. Paper fiat will be great tinder for fires.

hahaha I guess so! :D

This is super helpful, thanks so much! As I'm new to the crypto game and only managed to buy a little bit of a dip this last time around, I'm doing everything I can to learn more. Thanks for the great article. Followed.

Glad you like it!

I don't know if this sounds a little weird but does the season affect crypto? Cause I felt like when summer was upon us, everything seemed to be taking a chill. Also cause the asian region isn't as big as the states in terms of crypto but that's all changing, I think. Thanks for sharing! Cheers!

#follow4follow

  ·  7 years ago (edited)

asia has the highest volume in cryptocurrencies ...bithumb, okcoin, huobi...

on another note asia about to take things over from the west in a global wide perspective, from manufacturing to acquiring natural resources, energy related issues...last thing I would be comfortable sitting or living in is in countries with large governments..these are the first which will be part of the endgame...see it as the fall of rome....it's going to get very very nasty for some people having a job there...most of them rely on the 24/24 endless printing presses from the ECB or the FED..

I think we will continue to see corrections before further rallies. It's only normal. :)

Nice article. I agree that Cryptocurrency has ushered an asset class of its own. Honestly, no mitigation plans yet. The market is volatile, but I don't think that there will be an unrecoverable crash.

True that!

Awesome post man. Thanks!

Glad you liked it!

Crypto bubble has already begun. It's just that people need to find out which coins are the potential ones.
I think the future is bright.
Because, every coin is different, may be in a small factor.

Yes, eventually its going to get better! The future is really bright!

  ·  7 years ago (edited)

The total market cap of cryptos (100 billion usd) is so small you really can't call it a bubble. $100B is nothing if you believe in the fact that blockchain technology will shape the future. To put things into perspective, Home Depots market capitalisation is $180 Billion.

Yah, maybe so!

Upvote to me ! @maulanailham

Maybe if you have something useful to say which could help others I will consider upvoting!

haha

yeah dude! despo noobs be like.... LOL!

ARKK could provide partial diversification

yes just be careful, but invest some money, you won´t regret it.....

I'm positive about Bitcoin. Can steem exist without steemit? Steem is rather dependent.