“Bitcoin is closing in on a market value of $1 trillion, a surge that’s helping cryptocurrency returns far outstrip the performance of more traditional assets like stocks and gold,” Bloomberg writes.
Why It Matters: Prevailing thinking says speculators, corporate treasurers and institutional investors have “stoked Bitcoin’s volatile ascent.”
- Crypto believers see an asset that can hedge risks like inflation. Those opposed “sense a precarious mania riding atop waves of monetary and fiscal stimulus.”
- Tesla recently disclosed a $1.5 billion investment in Bitcoin and MicroStrategy “boosted a sale of convertible bonds to $900 million to buy even more of the token.”
Numbers To Consider:
- Bitcoin has added more than $415 billion of value in 2021 to around $956 billion.
- According to the Bloomberg Galaxy Crypto Index, it has more than doubled.
- Bitcoin approached $53,000 Friday morning at 9 a.m.
While the “long Bitcoin” trade is seen as one of the most popular in the world, along with tech exposure and dollar shorts, there’s still cause to be wary. Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney said if Bitcoin “falls out of favor — for example due to government regulation or investors just moving on to the next new thing — then it could quickly plunge.”
Bitcoin has already been life-changing for me. Is it too late to buy? I cannot predict short term price movements, but I believe this is a $300k+ asset within 10 years. I have done many YouTube videos on the subject, so definitely check them out if you want to learn more.