When I got up this morning and looked at the price of Bitcoin at 5 a.m., it was $6,999. Suddenly the price crossed $7,000, then onto $7,315 pretty quickly.
Wow, amazing, this is so huge. On Feb. 19, 2017, upon the advice of my son, Reid Hooper, I bought 0.67787675 BTC for $750.00 on CoinBase. Today that is worth $4,958.66, up 6.6 times in less than a year. I've been an investor for 24 years, and never have I owned an investment that went up this much in under a year. My original shares in Berkshire Hathaway purchased in 1996 were up 5 times after 10 years. I thought that was pretty good. Yet Bitcoin did in one year what took Warren Buffett 10 years. I'm not selling my Berkshire Hathaway. But I am glad I listened to my son about Bitcoin.
Reid had been studying crypto currency for a couple of years and had already invested some of his money into Bitcoin and Ethereum. So when we sat down on the couch to discuss it, he was already quite knowledgeable.
Perhaps his most convincing piece of evidence to buy Bitcoin was the security of its ledger. Satoshi Nakamoto had solved the double spending problem. You can't cheat the system. Miners around the world conduct a proof of work, to verify each transaction and make sure it is legitimate. This eliminates the need for a bank.
Japan, Korea, Europe, South America and the United States are embracing Bitcoin. CoinBase is adding 35,000 customers per day. Trading in Bitcoin continues 24 hours per day.
One of the reasons BTC spikes so quickly is that demand is outstripping supply. People who own Bitcoin aren't selling. And only about 1,800 new Bitcoins are created each day by the miners. I expect a lot of the miners like me are holding onto every single Satoshi (which is 1/100 millionth of a Bitcoin).
One of the reasons BTC spikes so quickly is that demand is outstripping supply. People who own Bitcoin aren't selling. And only about 1,800 new Bitcoins are created each day by the miners. I expect a lot of the miners like me are holding onto every single Satoshi (which is 1/100 millionth of a Bitcoin).
While writing this piece, I see Bitcoin price has retreated somewhat to $6,900. Well that's expected. Bitcoin tends to run up and retreat, it is quite volatile.
A friend of mine, Travis Warren, an experienced trader, saw this coming with Bitcoin. He told me once it passed $5,000, the price is headed to $10,000. He had a conviction buy for BTC because during retreats in price, volume dropped off substantially, as if sellers weren't there, they disappeared and were holding onto their Bitcoin. With demand piling up every day and not enough sellers, the price just shoots up! Can you say Parabolic? Well Travis, I'm glad you got into the game. Now we will be talking Bitcoin in addition to our stock picks.
A friend of mine, Travis Warren, an experienced trader, saw this coming with Bitcoin. He told me once it passed $5,000, the price is headed to $10,000. He had a conviction buy for BTC because during retreats in price, volume dropped off substantially, as if sellers weren't there, they disappeared and were holding onto their Bitcoin. With demand piling up every day and not enough sellers, the price just shoots up! Can you say Parabolic? Well Travis, I'm glad you got into the game. Now we will be talking Bitcoin in addition to our stock picks.
No comments:
Post a Comment