Sure, Bitcoin and all…
…everyone is humming the word.
Those who didn’t know of its existence a very short while ago, are all gung-ho about it.
Some experts are talking of a million dollars. They’re expecting it to touch a cool million per Bitcoin.
Other slightly conservative ones are talking about half a million.
Last month, someone thought it was chocolate candy that looked like a gold coin. This month, he’s just bought his first Bicoin. I think he paid the equivalent of almost USD 4000 for it.
Citizens are moving black money across borders with it.
It’s original signature exchange in Japan failed in early 2014.
An act of sabotage, perhaps?
Governments want it down.
The US will probably do everything in its capacity to stop Bitcoin from becoming the go-to currency of the future world instead of the USD.
Rumour has it that China has already imposed sanctions against it.
Well, well, well, what do we have here?
There’s a huge push and pull going on.
Who is pushing?
Launderers and terrorists, for starters. That’s where the bulk buying pressure is coming from. They don’t care about paying an extra buck to launder, or to buy weapons with. They’re applying real pressure, and the price has appropriately shot up.
Who is pulling?
Governments. Sanctions spoil the rise. A collapsed exchange enforces the law of gravity.
Where is this going?
Well, sure, who knows, but there’s a few things that one can say or even ask.
Has anyone seen Bitcoin?
What are its credentials?
Where did it come from?
Facts and not ghost-stories would be good here. Does anyone know the facts for sure?
Can one trust something whose whole exchange has once failed?
Now, with the Chinese move, God know what might happen?
Is the machine or device on which Bitcoin is stored not a target?
Where is the peace of mind? Can one sleep soundly with Bitcoin stored on one’s computer?
Bottomline is, there’s lots of ammunition in place to cause some massive landslides here.
Given that, there’s massive room for laundering and terrorism. The world’s launderers and terrorists aren’t done yet. Pressure will keep coming back in the current world situation.
It’s an ideal trading situation that has developed, both for the longs and the shorts.
Fine, trade Bitcoin. Make money. Good for you. I personally don’t trade it. Am happy trading stocks and currency instead, Those are my areas of expertise, and I don’t operate outside the areas of my expertise. However, if you’re making a killing trading Bitcoin, I’m really happy for you.
Just don’t do one thing.
Don’t get married to it.
Meaning, don’t pick it up at these 0% margin of safety prices, never then to let it go.
There’s so much ammunition that can bring it down, that one’s investment could even get wiped out during a swift crash, especially if it has been picked up on margin.
So, careful, people, careful.
Yeah, people, while investing in Bitcoin, tread cautiously. Wait for margin of safety to develop before picking up. Secure your device. Turn it off when you sleep. Back it up, if your backup can’t be hacked.
…don’t bet the farm.