Skip to main content

Futureproofing: Crypto Madness!



I'll start by assuming you've heard of Bitcoin and perhaps some of the other cryptocurrencies, such as Ether and Litecoin. If not, a quick web search is in order.

If you have been following the prices of cryptos, you'll no doubt be as stunned as the rest of the world by their volatility. 2017 was the year of All Time Highs being met swiftly and regularly, while 2018 to the current date of this writing is considered the "crypto winter". While the current price represents roughly 80% decline from the all time highs reached in December 2017, even this is not the greatest drop the 10 year history of Bitcoin. What lessons do we take from the wild ride that is crypto?

Lesson One: Volatility is an inherent part of the landscape, at least for now. Dizzying highs and gut-wrenching lows are the norm. If you can't handle volatility, avoid crypto like the plague. As always, NEVER invest more than you can afford to lose. In a high volatility environment, such losses can be permanent, with little to no waiting out the storm to recoup losses. Tread lightly. 

Lesson Two: Normalization is in an early stage. Wall Street is now in the game with Bitcoin futures. This is expected to bring stability to Bitcoin pricing, along with naked shorting and manipulation common to other futures markets. This could be a double-edge sword; hedge accordingly.

Lesson Three: It's never too late: Sure, you missed the early stage when Bitcoin was cheap and could be had for pennies each. Does that mean that you missed out entirely? No. Some are calling for Bitcoin to reach $100,000 each, with a few others predicting ten times that amount. Consider a cryptocurrency to invest in, do lots of research, keep an eye on central and private bank news, be prepared to deal with the anxiety of volatility and possibly watch your investment crash and burn as these things sometimes do, think it over, find an entry point you're comfortable with, and jump in. Bitcoin is currently making gains from recent lows and if indeed the potential is much higher, there is profit, perhaps great profit, to be made. And luckily for us of little means, fractional purchasing is the norm, meaning you don't have to buy the whole thing, just whatever amount you're comfortable with.

As ever, this isn't financial advise, and you've been warned of the potential catastrophic losses possible. Do your due diligence. Good luck!

Comments

Popular posts from this blog

In Memorium: Shaun Mullen, A Most Generous Man

Author, editor, blogger, and so much more Shaun Mullen has passed. Noting his blog  Kiko's House  hadn't been updated in a while, I did a search and discovered his  obituary . My friendship with Shaun goes back to 2006. While living in Australia, I'd discovered his blog when searching for informed commentary on US foreign policy in the Middle East. Sadly, much of that policy remains unchanged 14 years later, but that is for another post. Shaun  had noticed that his blog wasn't rendering correctly in Internet Explorer and asked if anyone could suggest a fix. I, being a bit of a tech head at the time, suggested Firefox or similar browser, and the problem was solved. We kept in and out of touch, finding common ground in music (I mentioned my love for the Grateful Dead and Shaun sent a dozen CDs of concert recordings. By International mail. The man was generous to a fault.), worldview, and more. My old site got its greatest number of hits when Shaun linked to a few of m

Finding Adventure In A Google-Mapped World

Technology has made our world a smaller place, a place less mysterious and perilous. Where once one had to travel to see a destination, now we simply look it up and look at pictures. This is both an advantage and a loss, and I'll try to explain in the paragraphs that follow.  Gone are the days of grand adventure, of heading off into the unknown. While it is true one can set off on a small, personal adventure, you're never too far away from information that can remove obstacles and inconveniences from your path, but remember those things are part of the path , and to remove them removes at least some of the adventure.  So, what to do? I suggest doing what technology regularly does: miniaturize.  Get to know your local area. You may think you already know it, but a few minutes of online research will have you raising your eyebrows. For example, I recently learned an old bridge just a short distance from home holds the distinction of being the oldest bridge still in use in the cou

A Black Swan Of My Very Own!

 One week ago, I, along with all employees of the print division of Brown Industries, was summoned to a meeting. Tensions were high and fear was palpable, as work had been slow for several weeks. Layoffs, it seemed, were to be announced.  If only it were so simple. Speaking through a poorly set up PA system, one of the two CEOs announced that funding that had been sought had fallen through and the company could no longer sustain operating costs. Brown Industries, inventor of the carpet sample industry and economic juggernaut for more than 60 years, would permanently suspend operations.  I was suddenly unemployed.  All were stunned. A short Q&A session took place in which we were reassured this wasn't the fault of labor, this was a failure on the management level. Cold comfort, to say the least. My immediate coworkers and I returned to our desks and began filling boxes with photos and other personal effects. I was reminded of the collapse of Lehman Brothers in 2008 and seeing fo