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Week 31: Cryptocurrency!!

Dear reader, 

"A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank."

About 10 years ago an until this day anonymous Satoshi Nakamoto created a new financial instrument, a Bitcoin was born. The world of digital money has changed. With a single Bitcoin reaching a all time high during the bull market of 2017 of $20.000,- The market has seen major bull markets and major bear markets. But Bitcoin is part of our system and the blockchain technique is here to stay.

During the last Bitcoin bull market a lot has happened. Tech geeks and nerds made millions and even billions by being the first people to purchase Bitcoins. If you have purchased 10 Bitcoins 10 years ago your Bitcoin would be worth $115.787,- Today we are going to dive a bit deeper into Bitcoin, and see if it's worth investing and how Bitcoin may relate to your success.

Cryptocurrency: 

The market capital of the cryptocurrency market is just over the 350 billion dollars. When you compare that to the different commodities such as silver at the price of $17.20 per oz the market cap is 43.9 billion. As of 2020 there are over 6000 different cryptocurrencies all with different solutions with regards to payments and blockchain. In 2017 thousands of new 'cryptos' came to the market via ICO's. An ICO is an Initial Coin Offering. You can compare that to an IPO in the stock market. This fled the market with FOMO, Fear of Missing Out and finally everything came tumbling down. 

For 2020 the market looks similar but different, with in may a halving in Bitcoin. Where the block rewards for mining Bitcoin have been cut in half. This means that it has become more difficult to mine Bitcoin and the scarcity would grow. With the Corona crisis and fear in the global markets people are looking for more safer investments such as gold, silver and Bitcoin. In the last few weeks these assets have seen a major growth in purchases and trades. 

Worth the investment?: 

Is Bitcoin worth investing? Before I go deeper into my thoughts if it is worth investing I need to state that I do own a little bit of Bitcoin. I don't own a lot but I have been investing in the past three years in this new currency. If you are looking only for great returns or you want to try to make a lot of money Bitcoin might be the investment for you. As I mentioned earlier there are over 6000 different coins and about roughly 1% is worth investing that have use cases or that have proven records of active users. 

 

With Bitcoin at nearly $12.000,- is it worth the investment? I think so! Bitcoin has been around for just 10 years and it has shaken up the financial and global markets. If you compare it to the rest of the money markets it is just a grain of rice and it has so much potential to grow. In this digital day and age we need a new and different way to transfer money. Even faster and better then ever. With Bitcoin being the dominant force you can hodl and invest in this currency for the future generations. 

Bitcoin and success: 

Because of Bitcoin there are a lot of people whom got very wealthy from it. As you could read from the intro you could have been a millionaire by now if you bought Bitcoin 10 years ago. Bitcoin can become your success story. I don't think that if you invest $100 today that you will become a millionaire in 10 years. But I do think that Bitcoin and other crypto's can play a huge role in your success and the road to financial freedom. 

While diversifying your assets and keeping a portion of your investments in Bitcoin just as gold and silver can be very beneficial for the long run. The difference between the crypto market and the stock market is the volatility. You need to be able to handle some heat and you need to be able get past the rough times. If you are able to understand the market and be on time you can win big. If you follow the herd you are in for a rough ride. 

Before you invest in Bitcoin or in anything do your own research, understand the product, the market and know what you are investing in. Most people follow because they are to lazy to do the work or they just hope to get rich quick. Invest with money that can loose and learn from every investment that you make. 

 Thank you fro reading, 

 Franklin, Moments2Success

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Location: Amsterdam, Netherlands

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