Is Bitcoin Really That Expensive?

One of the best things about cryptocurrencies is that they are available for trading 24 hours a day, seven days a week.

Aerial view of a collection of well-known cryptocurrency tokens.

One disadvantage of cryptocurrencies is that they are available for trading 24 hours a day, seven days a week.

I’m sort of joking. That is partially true.

It’s fun to watch cryptos — and your account balance — rise on weekends and evenings when they’re flying.

When prices decrease, on the other hand, it takes the joy out of it… but not the long-term potential.

That’s what happened this week, as Bitcoin (CCC:BTC-USD) fell for five days in a row from Friday to Tuesday.

It dropped 30% from high to low, and the headlines screamed doom and gloom, as one might expect.

The Bitcoin Bubble is about to burst. Why It’s Impossible to Know When the Selling Ends.

Bitcoin has gone from being “trendy” to being “tacky,” according to Deutsche Bank.


Cathie Wood of Ark Investment believes Bitcoin will reach $500,000 in the near future.

What’s going on here?

Cathie Wood and her ARK Invest products have a lot of my admiration. I believe she performs a lot of solid research and work on hypergrowth trends and future firms.

However, wow. Bitcoin’s goal of $500K is a huge one. That’s a 1,200 percent increase above current costs!

Regular readers know that if that happens, I expect certain altcoins to gain even more money.

Is it even possible?

It is, without a doubt, ambitious. But I believe it is doable. For the time being, I’ll stick with Bitcoin $100,000, which I’ve predicted for some time.

When Bitcoin was trading at $10,000 last fall, I set my sights on six figures… at $20,000, $30,000, $40,000, $50,000, and $60,000, and then again at $20,000, $30,000, $40,000, $50,000, and $60,000. And now it’s back to $40,000.

Cathie Wood is correct in her long-term perspective, though.

In a Bloomberg interview, she rightly said that environmental worries over Bitcoin mining had forced some people to back off, including Tesla CEO Elon Musk (NASDAQ:TSLA). Bitcoin miners, however, already employ renewable energy and hydroelectric power, according to her.

The majority of Bitcoin is mined in China (about 75%), and renewable energy now accounts for more than half of the time. She also anticipates that renewable energy sources such as wind and solar will be better incorporated into the electrical grid, making Bitcoin mining more ecologically beneficial.

Her statement that the recent drop in Bitcoin boosts the prospects of a Bitcoin exchange-traded fund (ETF) in the United States piqued my interest. “Now that we’ve got this correction, the odds are going up,” she said.

That would be a massive catalyst and a significant step ahead in the crypto revolution.

I’m sure there would be a market for it. That’s why, for the past eight years, a number of companies have attempted to develop a Bitcoin ETF located in the United States. Cameron and Tyler Winklevoss, industry pioneers, attempted it in 2013. In 2018, they attempted once more.

The Securities and Exchange Commission (SEC) rejected nine bitcoin ETF proposals in one day in August 2018.

The SEC’s official line has been that it is concerned about volatility, manipulation, and sufficient oversight. That, in my opinion, is nonsense. The government just does not want to be involved in a situation that it does not comprehend.

However, this is changing.

Canada approved the first North American Bitcoin ETF earlier this year, increasing pressure on US regulators to catch up. At least eight companies have filed applications with the Securities and Exchange Commission to develop crypto ETFs.

We require regulators who comprehend the blockchain technology that underpins cryptocurrencies and its potential to benefit so many aspects of our life. We need them to have a thorough grasp of blockchain and its value, not simply a passing familiarity with it.

Gary Gensler, the new chairman of the Securities and Exchange Commission, is a source of optimism. He was an MIT professor who taught a blockchain course, thus he is well-versed in the technology and its applications. The last thing we want right now is for any regulation to stifle blockchain’s promise… and the tremendous opportunity for clever altcoin investors.

Cryptocurrencies and the blockchain are going to revolutionize the world. The way you buy ordinary goods and services, buy a house, pay your taxes, and so on… even how a pizza is ordered

This shift is already taking place, which is why Bitcoin hit new highs earlier this year. That, according to my friend Charlie Shrem and me, was one of the most significant occurrences in the cryptocurrency business since Bitcoin’s inception in 2009. And Charlie was there almost from the beginning.

The event proved that Bitcoin and its smaller counterparts – altcoins with much more potential — are here to stay.

As firms, consumers, big-money investors, and even the government and regulators recognize what’s going on, a truly seismic shift will occur. Large corporations can no longer ignore bitcoin and other cryptocurrencies.

Money managers, hedge funds, major institutions, and even publicly traded firms have all expressed interest in cryptocurrencies and the blockchain technology that underpins them.

This large sum of money recognizes that if they do not devise a strategy, they will be left behind.

The same can be said for astute investors. Not investing in cryptocurrencies and blockchain today is akin to not investing in the internet’s early days.

Now is the time to be on the cutting edge of the next major technology revolution, which will emerge in the Roaring 2020s.

Matthew McCall did not hold any positions in the securities referenced in this article (directly or indirectly) at the time of publishing.

Matthew McCall left Wall Street to aid investors by getting them early access to the world’s largest, most transformative movements.

What do you think?

Written by Winston


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