Bitcoin Rampage Continues, and Some Questions
It shocked everyone when it went to $2000, and now, not even a year later, bitcoin is around $14,000. Now the entire world has taken notice of something I knew about two years ago… that bitcoin is a viable option for future handling of money, and its very likely going to take off in value as more nations and communities start adopting its use. For the first time ever, bitcoin is making “normal” national news, and normal, everyday people are asking about it and getting interested.
Needless to say, my own investment portfolio this year has done very well because of this bitcoin stuff. Not only bitcoin, but ethereum, which I also own, has almost doubled in value since I invested in it as a hedge to bitcoin (in case bitcoin failed and ethereum became the “new” bitcoin, which may still eventually happen).
I’ve made so much money with bitcoin that I’ve already taken 100% of my initial capital out of it, plus a very healthy profit, so all the money I have left in bitcoin and all these gains are literally “free,” and if I lose it all, I will have already made money. (I hope to do the same with ethereum very soon.)
There are two general sides to this bitcoin thing, and I agree with both.
One side are my fellow libertarians who are very excited and think bitcoin will eventually go to $50,000, $100,000, or more. I agree with them.
The other position is that all this bitcoin stuff is just another exuberant, insane bubble, like so many others in the past, and that a bunch of idiots are going to artificially jack up the price of bitcoin before it finally pops and crashes, causing everyone lose their entire investment. I agree with them too.
Yes, digital / cryptocurrencies are the future, and there’s no stopping them. Governments have no more ability to prevent people owning cryptos any more than they do preventing people from owning drugs or guns. They’re here to stay. Primary players like bitcoin, ethereum, litecoin and others will experience dramatic increases in adoption and interest, which will indeed increase their real value in the marketplace. I think an eventual $50,000 bitcoin value is quite likely.
At the same time, this is also a bubble. I see many libertarian-minded people who I really like and respect, like Max Kaiser and John McAfee, absolutely lose their minds about how excited they are and how bitcoin is the absolute greatest thing in the history of the universe with zero problems or downsides. I like bitcoin too, but as I’ve said many times, when you experience extreme emotions, you lose objectivity and rationality. This is true when you get angry, and it’s also true when you get really excited.
Again, I believe in bitcoin. I’ve even started a small bitcoin mining company with my son. But, I also think many bitcoin supporters are indeed losing objectivity and are hyping up this stuff. I also think a lot of idiots are going to start flooding the bitcoin market, turning it into a bubble if it isn’t one already. This will indeed artificially increase its value, so some big corrections are probably coming down the pike. A lot of people are going to lose a lot of money, at least eventually.
I Have Some Questions For You In The Audience
Now that more of us are owning bitcoin, and those of us who own bitcoin own a lot more bitcoin (in terms of value in US dollars) because of its recent skyrocketing increase in value, I have a few questions for you about bitcoin that you more bitcoin savvy guys can answer in the comments. If I get some good answers, I’ll use them as a basis for a future article or two here.
I have my own answers to these questions, but I’m really curious as to what other guys are doing. Here we go:
1. What is the easiest way to buy bitcoin by not using an exchange, if any? Or, if you must use an exchange, are there any exchanges easier to use than the big ones like Coinbase?
2. What is the safest and most secure way to store bitcoin long-term? If a guy has $20,000 or more in bitcoin, where / how would he store it so it doesn’t get lost or hacked? Paper wallet? Hardware wallet? Offline computer?
3. If bitcoin is skyrocketing in value like it’s currently doing, why would anyone bother to use it as a means of purchasing things right now?
4. What cryptocurrencies do you think will really take off and/or overcome bitcoin eventually? And why do you feel that way?
Answer away. I’m here to learn.