A few months ago I wrote about cryptocurrencies – like Bitcoin – and shared my son’s experience with it. You’ll perhaps recall he turned $65 into almost $700 in the first five months of the year. That was enough for him to buy an Apple iPad as he headed back to college and bank a few hundred extra.
Like many readers who think of cryptocurrency as a purely speculative buy – one person compared it to the Dutch tulip craze of the 1600s – I remained a bit skeptical myself. A few weeks later, however, I read this Forbes article on the political advantages of the existence of cryptocurrencies and went ahead and bought a token amount of both Bitcoin and Etherium.
The article showed the advantages of cryptocurrency within the kind of geopolitical instability we are currently seeing in Venezuela. No surprise, as the sovereign currency there has become worthless, many citizens preserved their wealth by switching it into Bitcoin. Even in that military-run communist country, the government cannot track cryptocurrencies.
My goal was to either double my investment (and withdraw my principal), or watch it go worthless. Fortunately, we are getting closer to the former than the latter. That is, the market for cryptocurrencies seems to keep going up.
As of this writing, my cryptocurrency portfolio is up 44% in 90 days. Bitcoin is up 38% and Etherium is up 58%. The recent run up on prices happened as major world banks announced their plans to develop a cryptocurrency strategy and IBM/Walmart/Unilever created a partnership to lever the underlying blockchain technology. China, India, and Russia are also said to be developing digital versions of their sovereign currencies. The overall value of cryptocurrencies just exceeded PayPal.
This isn’t an advertisement to go out and bet the farm on cryptocurrencies, but like me, it may be an interesting thing for you to hobby with. It may be that the only value in buying a cryptocurrency is not missing out on the future value of cryptocurrencies. Or, as millions believe, there may be something more here. If you are at all interested, I’d suggest try buying even a couple hundred dollars worth on a website like CoinBase and set up an alert each day for headlines and the latest prices. If you are interested in personal finance, I think you will find the evolution of this currency very interesting!
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