Over six months ago, I had researched and spent time trying to understand blockchain and cryptocurrency. I wrote about it in this report. I even gave it to my subscribers for free, and asked others to pay just $19. Heck, I even published parts of it in the local magazine (I guess no one reads those tree destroying articles anymore).
Yet, I realized one thing – today we don’t have an information asymmetry problem, we have information overload (or are people too busy scrolling on Facebook and WhatsApp?).
I actually wrote that report to kill the information overload by researching from tonnes of resources, packaged it into a nice little report that would have taken you 30 minutes to consume. And yet hardly anyone who read that report took action.
And three currencies which I mentioned were Bitcoin, Ethereum and Ripple. And if you don’t know what happened, this graph says it all.
I was more bullish on Ethereum than Bitcoin or Ripple. And for reasons that I mention in the report.
Today, because of the meteoric rise of Bitcoin prices, people are all talking about it. Yes, it’s true that the rise was quite fast and furious. But you really can’t see what’s on the right side of the graph. Yes, there will be intermittent corrections or even crashes. But ultimately, the supply is restricted, which is why this will continue to rise.
To put things into perspective. I had invested around $300 in Bitcoin & Ethereum. At the peak, that was around $5,000. So yeah, over 15x return. Of course, the trader in me knows a few strategies, so I sold Bitcoin for $300 equivalent and bought myself a Montblanc Pen through Purse.IO which allows you to use your Bitcoin on sites like Amazon.com – I call this strategy Principal Banking – and if you don’t know what that is or why it’s important to building wealth, you better sign up for ZENCAPITA.
(BTW, more and more companies are accepting bitcoin, here’s a list of them).
Let’s put it this way, the blockchain / cryptocurrency trade was the trade of the year for me. And of course, when you make money, you always wish you put more in. Well, whatever remains is now risk-free money. It’s money I can afford to lose (although I don’t wish to).
When you hear your friends asking you about bitcoin and blockchain and stating that it’s too high, too speculative, and compare it with the Tulip Mania – you know, it’s time to invest more.
But when you hear your taxi driver tell you that he’s trading bitcoin and making a killing. Then get out of the car, and run to your nearest trading platform and sell everything you got!
I don’t believe these cryptocurrencies are at the Euphoria stage. Why do I think so, well, demand and supply is one thing. There’s limited supply, so its bound to go up, if it serves a purpose. But many countries are not even on the bandwagon yet. India, with its 1 billion population haven’t even come around to understanding it. It’s NOT illegal as per the Indian government, but it isn’t easy to trade. You can check out Unocoin to grab your coins in India.
Also in the Middle East, in a place like Bahrain where #fintech is the thing, you can’t connect your PayPal account to your bank, leave aside Bitcoin. So yeah, we haven’t quite reached Euphoria stage. When we do, I’ll be a rich man!
But will this rise continue? With over 800 cryptocurrency coins out there, there’s plenty of information to absorb. But if you’d like to simplify things – come and join me on the inside at zencapita. Meanwhile, spend some time looking at the chart below… it might open your eyes to the winds of change.