The Noise can be Distracting

Just over ten years since the creation of Bitcoin, we have one of the most controversial presidents of modern times blasting the existence of Bitcoin publicly. Why would the president of the United States take time to cast opinion on something “based on thin air?”

One can only assume that cryptocurrency has been gaining traction behind the scenes and if the general public has just been brought into the loop from a political standpoint, you can be certain that the big players have already made substantial stakes and plans in the future of cryptocurrency. The confusion is being brought to the future retail investors and there is no better way to that than to politicize an effort.

Understand that the value of the US dollar is backed by the full faith and credit of the United States. It is no longer backed by physical gold. It is based on a form of psychological trust. This trust propels the economy and gets the honest person up in the morning to go out and make government backed money to support their living.

Honestly, it shows that if we really understood where the value of a dollar comes from, it should see magnificent swings in its value based on the majority party of any given election cycle, more so when a major change of party or leadership takes place.

Both the dollar and digital assets are based on trust in something. Albeit, one will not be hard pressed to find opposition of either asset class. Imagine the possibility of transferring trust from a politicized government backed currency to a system of checks and balances that resides on a global public ledger tracking all transactions without the ability to tamper. Take this notion even further and visualize a system of digital assets that improve and validate the flow of currency, real estate, contracts, goods and services globally in a regulatory framework that enhances transparency and accountability.

Let us see what October brings with various digital asset opportunities.

Words and opinions are my own. This is for entertainment purposes and to share my own opinions. This is not financial advice.

#digitalasset #cryptocurrency #digitalfuture

 

The bulls have it, the bears want it. Will crypto pull from a market correction?

The general feeling of continued market stability is coming under question. Some have proposed severe market downturns. The inevitable will happen, but when?

Whether you believe that someone has the crystal ball on market forecasting is entirely up to you. I am a student of history and history does repeat itself, though not entirely in the same manner or breadth each time, the overall cycle does come full-circle. I like to be prepared.

Will cryptocurrencies become a new hedge against market corrections? Will they replace, compete, or partner with precious metals and other traditional bear market safe havens?

As we near the decision of whether the SEC will permit Bitcoin ETFs (delayed until September 30, 2018), I believe that we will see a shift into this new asset class by large investors, banks, family trusts, and eventually, the individual investor. VanEck has proposed a $200k minimum to ensure that investors are in fact accredited and fractional shares will not be available.

Volatility will continue due to uncertainty in the news and various other sources about which cryptocurrencies will be the best bet in both the short and long term. For the up-to-date investor, that is anyone’s game. Regulatory frameworks are well under way, though likely out of sight to the average investor. As regulatory frameworks are developed, the landscape will change. Lobbyist groups, such as the Blockchain Association, are currently leading the charge across the political landscape representing companies like Coinbase, Polychain Capital, and others.

The end of Q3 and all of Q4 should have some very interesting action that I believe will give a little more perspective to the digital asset sphere. Particularly, the SEC review for the Blockchain ETFs and certain work in the blockchain/crypto sphere that is expected to go live, affecting the use of particular cryptocurrencies.

NOTE: As the domain name of this site suggests, the content my blog posts are opinion and not investment advice of any kind. Do your own research before making any decisions to invest (or not to invest). I am not a financial advisor. I am simply sharing information I gather from across the web, news, and media outlets and drawing my own possible conclusions.