In today’s Exponential Investor…
- A little run through history
- £15,000 or more
- Will we hit the highs again?
It’s late April, 2017. You’re watching the news. Or maybe you’re online checking out the major news websites. Or maybe you’re just on Twitter.
And the trickle of news from the business section turns into a deluge…
Bitcoin is worth more than gold!
There it is in big, brash, bold headlines. One bitcoin is now worth more than an ounce of gold.
You’re a little astonished. Gold’s price has been trading for most of the year around the £950 mark. A little over, a little below, but relatively stable.
And here, out of nowhere a bit-coin, some magical internet money, is worth in fiat-converted value more than gold?
That just can’t be true.
But it is. And at the time you wonder to yourself, should I get some?
Of course in doing the most basic of due diligence, you take a look at the price history of bitcoin. And it makes for some entertaining viewing.You wind the chart out to early 2013 when a single bitcoin was worth less than £100. And then you see an astronomical spike more than eight times higher in late 2013. This actually was the first time the fiat-converted value of bitcoin surpassed gold.
But then you see a long 18 months of bitcoin’s price falling down and down and down to around £160. What a boom. What a bust.
Except you quickly remember that the headlines are saying bitcoin is worth more than gold. And gold is about £950 right now!
That means that bitcoin has come back! But the bottom was years ago, and now it’s peaking again, getting mainstream coverage, more than gold, this must be the top?
It’s all too volatile and too risky and when you look at its rise, there’s a fair argument to think it’s run its race this year and just like 2013 it’ll boom and bust again.
Well, had you have said in April 2017 that bitcoin would boom and bust again, you’d be 100% right.
Just the bit that maybe you didn’t anticipate is that this boom and bust would be multitudes higher than the last big boom and bust from 2013 – which you’ve only just discovered.
This time, in 2017 bitcoin goes up, and up, and up to top out at over £15,000.
That’s right, £15,000 – the price of a nice second-hand German automobile. And multiple times more than an ounce of gold.
But it does bust. And it busts just like 2013 and 2014 and 2015 down to a measly £2,500 by late 2018. What a fall from grace…
Weren’t we just talking about a previous boom peak of £950? And a bust down to £160?
And here we are after the next bust at bottoming out fiat-converted prices of about £2,500?
Even from the peak of 2013 to the bust of 2018 – you’d still be quids-in had you taken a punt and dabbled into some bitcoin.
But of course, common sense says it’ll probably just bust out further. But it doesn’t. And today we’re talking about bitcoin back to fiat-converted prices of around £9,300.
Soon enough, the magical £10,000 number might just appear again. And if I’m correct, that won’t be it. Not only might we see the previous boom peak of £15,000, but we could sail multitudes past that again.
With that said, I want you to now forget everything I’ve just said about “prices”.
Prices are irrelevant if you really want to know how to play crypto markets…
Experience and understanding
What I’ve learnt from about a decade involved in cryptocurrency markets is that you need to actually look beyond the prices. What prices do is misdirect the eye from what the real story is in these exciting markets.
Prices distract you from the thought process and mindset you need to truly play these markets correctly.
It’s taking on board the right mindset that really puts you in the driver’s seat to understand and benefit from what’s happening right now.
And it’s this mindset that I want you to take when you watch my series of interviews I’ve lined for you to help you understand the crypto markets and the opportunity in play right now.
I’ve brought together several of the world’s finest minds in crypto to educate you and help you to understand the bigger picture. To give you the tools needed to spot and benefit from this new crypto megacycle.
It’s the best, most fascinating event you might see all year when it comes to this wild opportunity, which is beginning on Monday. And all you need to do to see all the content completely free is to just make sure you’ve registered for the launch of the event.
Taking on this new mindset to how crypto is set to impact far more than just money, I believe will set you up to become a true long-term crypto investor. You’ll find your way into the market and begin to understand that it’s not that different from the “traditional” markets you know so well and are supposed to trust.
You’ll see that crypto markets are actually made up of similar ways to invest that a stockmarket does, but flips on its head the concept around how you invest and where value really exists.
My key point that I want you to really understand is that in the crypto markets, you’re given access to the opportunities when they first arrive. You’re not at the back of the queue like you are in the stockmarket.
That fundamental shift is what opens you up to a world of opportunity, that, if you’ve not looked at seriously before, I hope you will now.
So, will bitcoin sail up and past $20,000 (£15,000) again? Well, I think so.
When? I’m not sure, but it might be much sooner than many expect.
Editor, Exponential Investor