By Keith Pendleton
The cryptocurrency Bitcoin (symbol BTC) and other tokens (alt-coins like Etherium (ETH) and Ripple (XPR)) are creating the most massive transfer of wealth mankind has ever seen according to several prominent crypto currency investment strategists. The momentum promises to soar with the next federal government loosening regulations over the industry in an effort to make the USA a world leader in crypto.
The sixteen-year-old industry is one area barely funded by institutional investors but that is changing rapidly. The institutional commercialization of the crypto currencies means massive infusion of money into the virtual marketplace, not just in dollars but in most world currencies.
National political leaders in America, like Senator Cynthia Lummis, R. WY, are clamoring for a National Bitcoin Reserve. Though BTC recently hit a new all-time-high of over $108,000 the coin has shed almost 15% of its value in half a week. The current market correction gives every-day people a chance to get on the Bitcoin bandwagon before the next imminent rally, and resulting price increase, which is predicated on two new factors: 1. Government AND financial institutions are going to be buying crypto, especially Bitcoin. These purchasing powerhouses will involve massive quantities of coin to make previous profit-taking look like child’s play. 2. Bitcoin is a finite commodity, asset, currency, investment vehicle and purchasing tool. It is hard-capped at 21 million coins. No more BTC coins can be created, either through mining or any other means. There are currently 19.8 million coins in trade already. What this means is that, on the threshold of the greatest demand for the commodity, an even greater barrier will be reached. End of supply!
The world has already witnessed more crypto millionaires than any other monetary vehicle has created. Federal Reserve Chairman Jerome Powell has characterized the crypto craze in these words: “People use Bitcoin as a speculative asset,” likening it to “gold” but noting its “virtual, digital nature.”
Being like gold was not always the case. Bitcoin was created to be a medium of exchange, like dollars and cents or any other fiat (government-backed currency) buying products and services, not a store of value, like gold or silver. But according to some crypto market analysts the coin was hijacked to utilize investment or store-of-value use cases. Some decentralized coin purists created other coins to be a replacement media of exchange in place of fiat currencies or bartering. Coins like Bitcoin Cash (BCH) and Litecoin (LTC) fulfill that original purpose. Other coins like ETH and XRP were created by labs for creative blockchain use cases. XRP (Ripple) is a worldwide currency exchange project hoping to replace the SWIFT banking exchange with faster less expensive blockchain technology. ETH (Ehterium) has more creative projects in its universe including decentralized finance, gaming and artificial intelligence projects.
Those who investigate and buy their favorite coin(s) now, before inauguration day, January 20, 2025, will get on this greatest wealth movement ever.
Even after the new USA president takes office, there will be profits to be made. But within hours of that inauguration a presidential proclamation will create a national Bitcoin reserve to compete with individual and institutional investors for a scarce commodity. Though many government bureaucrats fear crypto currency problems, most want to create greater flexibility for enthusiasts to safely use blockchain.
Bitcoin and other crypto currencies may be purchased online via computer, notebook or even using your cellphone. Common and popular online exchanges include Binance, Coinbase, Crypto.com, Kraken and Uphold. There are several crypto-coin-network ATMs in most larger cities in San Luis Obispo County including CoinFlip, Coinstar, GetCoin, LibertyX and RockitCoin. If using an ATM/kiosk, it is important to sign up on the network website before trying to access the physical locations to purchase crypto-coins. ATM/kiosk advantages include printed receipts and cash or credit/debit card transactions without the string of security features that are often complex, confusing, and sometimes technologically faulty. Crypto currency kiosks may be found in grocery stores, department stores, convenience stores and even food establishments.
This information is NOT financial advice. Many forces create investment opportunities or challenges, and this article is limited in its scope. Before any investment is made use due diligence to study outcomes compared to your investment goals. Past price history does not represent predictive future performance! Invest only what you can afford to lose.
The author has verified the utility of several exchanges and sales venues listed above and has positions in crypto currency instruments, including many of those mentioned. There are millions of crypto currency coins or tokens to choose from and seemingly new coins should have the greatest upside potential. The author has found coins longer on the market have a better chance at a break-out compared to literally millions of new newly created projects.