What will 2018 bring in the Crypto Markets?
So your new to "bitcoin". It has been quite the wild year. For early adopters and long term holders, there is a good chance you are celebrating, sipping a Pina Colada on a warm beach right about now.
Will 2018 bring more gains? Or more pain? Anyone in the crypto market has seen the price fluctuations--and fair warning--trading cryptos may not be for the faint of heart.
Most people have a very limited understanding of how these new markets function, and because of that, there is a high probability that people will either make--or lose, a lot of money, quickly.
So, should we consider these markets as "currencies" or investments?
In reality, buying a coin for speculative nature is not much different then trying to trade the market. They are both casinos, and both are a form of gambling. There are far more riskier bets that are sold everyday. What is appalling, is how long PENNY STOCKS have been left unregulated to massive pump and dump schemes. Now that a new technology exists that can make banks more obsolete, they want to come down on it with a iron fist and claim they are doing it in the name of the protecting the citizen. Do Not Be Fooled. This cotton industry disrupts the way things have always worked, much like the internet did. Is there risk involved? Of course. Anyone wanting to get some skin in the game should do their own due diligence and only risk an amount of money that they can put in, and forget and possibly lose. As you can see with bitcoin, holding over the long term as a strategy can hold water. Unfortunately, as its price and adoption rises, so do network fees and congestion. This diminishes its value as a currency.
However, Bitcoin has hidden value lies in its adoption as a means of investing in Altcoins.
When you buy altcoins, you need to first purchase bitcoin, and then purchase the coins on their own respective exchanges. This alone produces a huge demand for bitcoins. Even more importantly, it becomes a place where bitcoin is invested, often for longer periods of time. While the market cap of Bitcoin and Ether together is roughly currently $358 billion, the market cap of Cryptos as a whole lies at 620 Billion. Does that mean that most of the money invested into both the bitcoin and ether platforms is being further invested into the Coins of the future? If so, this could provide a massive base of support and then Bitcoin could fulfill its role in propelling us away from the bankiing oligarchy.
Bitcoin and its offspring of Altcoins have given the world a chance to invest in ideas being developed in places all over the world. Its an amazing decentralized capability to be able to buy coins and basically invest in the platform of an idea you believe in. If it becomes successful, demand for its coins will rise, and so (depending on circulating supply) the price should rise.
Anyone with a business background will tell you that what it ultimately simplifies down to is one thing - Risk/Reward. No risk, no reward. Over time, our intentions shift to managing that risk and looking for profitable setups that create a positive expected value over time. But in the back of our minds we always remember that its all a gamble. One unlucky setback and anyone can go from being the king of the mountain to bottom of the barrel. Even Bitcoin will have to continuously prove itself and will inevitable correct numerous more times. But, if you can stomach the wild rides, and have a few extra hundred bucks you want to invest, its still possible to become the next bitcoin millionaire.
Stay tuned for more money saving tips on how to get into this new market, and avoid the scams that inevitable exists already- in all financial markets.
Happy Investing &Happy Holidays From CryptoNation
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