BITCOIN TOPS $99,000 IN BULL RUN
TRUMP 2.0 BOOSTS CRYPTO FORTUNES
NEXT BITCOIN MILESTONE $100,000?
Bitcoin is inching towards a major milestone one that was considered impossible two years back. Bitcoin is worth almost $99,000 now, $99,000 the race is on for $100,000 imagine that.
One Bitcoin could soon be worth $100,000 which is more than 174,000,000 Naira, one Bitcoin. What explains this sudden Bull Run? Simply put it's Donald Trump. Since his election Victory Bitcoin has been on a roll just look at the tragectory.
It was at $68,000 on election night, it Rose to almost $75,000 when Trump won and now it's inching towards $100,000 all because of sentiment. Trump has not taken charge yet but indications are that he will be a crypto-friendly president, that he will reduce regulations on crypto. We saw that first on the campaign trail he promised to turn the us into the world's crypto capital.
His cabinet picks also indicate that. Donald Trump has selected Howard Lotnik
to be his commerce secretary, he's a big crypto fan.
Read what he said about Bitcoin
"I have hundreds of millions of
dollars in exposure to bitcoin, every time Bitcoin dips I'm going to be the buyer".
Well that's not all, reports say that Trump is mulling a crypto zar, an official task with boosting the crypto industry. He's also thinking about a Bitcoin Reserve, now this is a radical idea, a new idea. We know that countries have strategic gold reserves, countries also have strategic oil reserves, these are held by governments or central banks. The purpose is to hedge against volatility basically to overcome 'Tough Financial Times'. Reports say Donald Trump could create a similar reserve of Bitcoin, now just to be clear this is all speculation and Market expectation at this point, but it is enough to trigger a bull run which brings us to the main question.
Should you invest in Bitcoin?
Is this the right time to take the plunge?
Never ask this question to crypto bros because their answer is always yes, they feel the sky is the limit for Bitcoin.
But here's a couple of factors to keep in mind if you plan to take the plunge.
- Buying at an all-time high is never a good idea, especially a volatile ass like Bitcoin, yes it could rise further leading up to Trump's inauguration but it could also crash if he does not live up to the expectations. So be aware of that risk.
- You can't use it for transactions, Bitcoin was created as an alternative to currency but nowadays it's become an investment tool, only two countries use Bitcoin as legal tender these are El Salvador and the Central African Republic, elsewhere in all other countries you cannot buy things with
with Bitcoin you can only hold it like
stocks which brings us to no. 3. - You'll have to pay a tax on profits here in Nigeria 10% on all crypto profits, compared to other financial assets tax.
Unlike Donald Trump or El Salvador Nigeria is not promoting crypto, it is being vigilant and watchful so research your country's policy on crypto only then should you invest. It's a lot easier than it used to be though, earlier you could only buy Bitcoins from crypto exchanges like Binance or Coinbase. A lot of them turned out to be shady so the risk of investing was very high but nowadays you have Bitcoin ETFs like gold or crude ETFS. ETFs are exchange traded funds these are special government regulated funds, they track the price of Bitcoin but you don't actually have to own it. No crypto exchange or wallet business, and that's been the big feature of crypto in recent times, it's not limited to tech bros and basements. Even non- tech savvy people can invest in it. Of course whether you should or not is is a decision that only you should take. Most experts says start slowly, perhaps less than 5 or 3% of your portfolio, they would say talk to your financial advisers, do not blindly jump on the hype train, make calculated decisions.