Bitcoin Rallying And I Am No Longer Bearish

If you recall, it was around this time a few years ago, 2017, when Bitcoin became a household name and went on the tear from under $1,000 per coin to more than $17,000 per coin in under one year. The mania of the move came in the latter part of the year and right between the holidays. Fast forward a few years later, and Bitcoin has once again made a surprising move in the latter half of the year and once again set all-new record highs.

I have long been bearish on Bitcoin, but over the years and recent months, I have begun to move more toward the middle in terms of Bitcoin bulls vs. bears and why I have moved towards the middle what I would like to explain today.

My biggest and main issue with Bitcoin from the time I was introduced to it in 2013 is that, like other precious metals, they have no real intrinsic value. Therefore, you can't accurately or even inaccurately value the asset. With that being said, I have never invested in gold, or diamonds, silver, or any other metal, unless you are like my wife and consider "jewelry" an investment. I don't invest in any of them because they aren't like stocks that have value based on what the company plans to do or how much cash they have in the bank. I can value stocks and determine if they are under or overvalued by the market.

Precious metals, like Bitcoin, you can not do that because these things are only worth what they last traded for or what one person or another somewhere in the world is willing to pay for them at this moment in time.

And none of that has changed.

However, in the past few months, we have seen Continue reading "Bitcoin Rallying And I Am No Longer Bearish"

Square Buys Bitcoin, What Does This Mean For The Crypto-Currency

In October, news broke that Square (SQ), the payment processing company, had made a $50 million investment into the cryptocurrency Bitcoin. For some market participants, this seems odd. For others, this was a genius move by the founder of Square and Twitter (TWTR), Jack Dorsey, while others were not sure about this decision and just wanted to sit on the sidelines and watch this all play out.

Before we go any further, I want to clarify that I am not a Bitcoin bull, and at no time have I ever owned Bitcoin, or do I plan on owning the cryptocurrency in the near future. I have even written over the years about how and why I don't believe Bitcoin will "rule" the world as some believe. With that all being said, I am also able to admit that I am not the smartest person in the room, and I have been wrong about investments in the past, Bitcoin to this point being one of them.

Jack Dorsey, whom I would consider an extremely intelligent person believes differently than I do because he does advocate for Bitcoin and in 2018 even went on record saying Bitcoin will eventually become the world's 'single currency.' Jack Dorsey believed in Bitcoin's long-term prospects and was willing to put $50 million behind his beliefs. Continue reading "Square Buys Bitcoin, What Does This Mean For The Crypto-Currency"