Future of The New Digital Asset Class - Cryptocurrencies - Not all made equal
After leaving the Consensus Summit in NYC this past week. I came away with some renewed knowledge for the cryptocurrencies market. Im seeing right before my eyes how our Future is developing. The Banks are in, Big Tech is In. Im sold!
As some of you may now, the U.S. Stock Market has disconnected from reality. It's highly manipulated by the hedge funds, banks, and our government. Leaving us with very little hope to no room to prosper.
Old Investment Ideas Made Obsolete:
The idea of, "Invest for the Long Term" is a dead and obsolete idea. Take it from a trader who has traded those option markets for the past 10 years independently and I've done very, very well. However, It is not as lucrative today. When a company would announce good earnings, stocks would soar; today the opposite happens. Analysts will now look at future guidance into the future quarters. Not how much money we made now or what the "EARNINGS" were. It's what are you going to do in the next 2 Quarters as our economy is now contracting to 1% GDP.
My Trade on Facebook Earnings Release 3Q 15':
I had a major position in Facebook back in 2015', ready and anticipating the break out past $100 for the first time, earnings are set to release. This stock is poised to hit $120, firms upgraded Facebook to "Strong BUY", 10 Minutes before earnings, CNBC Sqwuak on the Street headlines said, " Positions are In, 80% Call Options are placed by many option traders (many investors feelings bullish on the stock), Instagram is growing, this company is the leader in "FANG" (Facebook, Amazon,Netflix, Google), they beat earnings 3 quarters in a row with massive growth. You get the idea. 4:30 pm hits -----"FACEBOOK MAKES RECORD EARNINGS, BEATS ESTIMATES!" - BUT.....has poor guidance because of a major investment into a data center out in Texas. The stock tanks the next morning $12.00. If you know the options market, that is significant. My trade went against me at a total loss of -89%. By the time 4th Quarter rolls around, I couldn't help but watch would Facebook announce. The news ---- "Facebook MEETS (NOT BEATS) earnings, stock soars to $110 from $87. -----ARE YOU KIDDING ME!?
In a way I was happy, that trade was the last nail in the coffin where I said to myself, "This market is not real, HFT Traders were involved in that trade and stole from the people, including myself, who knew Facebook was doing extremely well. I need to move else where." "Do the opposite of the news".
Ive come to notice, main street is seriously out matched by the big boys on Wall Street with their FANCY high frequency trading systems. It's their game now and I just needed to find my game. A market based on REAL speculation, news, and a future. That, "elsewhere" is now cryptocurrency trading.
Why Cryptocurrency is Real and Here to Stay:
At the consensus summit, major sponsors are pushing, shoving, to know who are the big players in town, what new developments in Blockchain is happening. All these Banks and IT Firms such as JP Morgan, IBM, Microsoft, Santander, Citi are all rushing through the doors, as they know, we hold their future in our hands.
Banks and players like the Winklevoss Twins are looking to create the first publicly traded ETF for Bitcoin. An Ethereum fund has filed for review and approval by the SEC. All quite the positive news there.
Get ready to get a call from your brokerage and here the words, " Do you want to invest in our New Digital Asset Class?". Asset classes are broken up into 6 categories, Stocks, Mutual Funds, Bonds, Real Estate, Oil, and Futures (pork belly's, sugar, coffee, etc.)
This 7th category will be the best category of all categories, an exposure to the Bitcoin ETF. A fund with limited supply or serious demand. As well a know the dollar is toast. Get ready to see cryptocurrency to be widely adopted by the masses. This is my opinion and my future prediction when this happens.
Bitcoin $20,000 in 2020. I could be off by another zero.
However despite that, I think Ethereum is the real deal. It will switch from Digital Asset to CryptoCommodity. A world commodity like OIL. Everyone is going to need it if they want to thrive into the new world of blockchain technology which estimates to eliminate $500 Billion of waste in administrative and legal costs through Ethereums' SmartContract Blockchain.
No price prediction for Ethereum on my end, we will know more as this market develops. However we can all have fun but to think where it can go. All I can say,.... The Sky is the Limit.