I left my psychological biases at the door, opened a Coinbase account, and have been slowly accumulating litecoin over the past couple weeks. Yes, that is correct. I am currently the owner of about 20 litecoin. Indeed, it is just an experiment, and if I lose the money it won’t be my undoing. I intend to buy more.
Here is an article from Zero Hedge, discussing how Standpoint Research sees bitcoin going to $25,000-$50,000 over the next decade. It sounds like the crazy gold price predictions we hear from KWN, GATA, or Steve Quayle, but, if what you and I have been talking about is true, and these currencies fill some of the vacuum left by national fiat (and gold), then it could happen.
Here is an article from Bloomberg, Bitcoin to $50,000 Is Latest Call From Prolific Stock Picker. According to Ronnie Moas, the analyst at Standpoint, “there are only 21,000,000 bitcoins in circulation and the world will fight over those 21 million coins as confidence in currency and other investments deteriorates,” Moas wrote, referring to the algorithm that caps the amount of bitcoin that can be created. “I have little doubt that 1% of the money in cash, bonds, stocks and gold will end up in cryptocurrencies.”
Moas continues, “I have concerns about cryptocurrency but my bias right now is thinking that this is something legitimate and that it is too late for regulators and the (threatened) financial services industry to get this back in the box the same way yellow taxis can’t get Uber back in the box. Just as Uber is now too big to crack down on, so are Bitcoin and Ethereum. I am very excited about this opportunity (and I hope it is justified).”
If the battle on gold takes this unique turn and gold prices stay muted as everything else rises, I can see it happening.
Coinbase works with the GDAX trading platform and it works just like any stock or futures trading book. It is kind of fun, and most of the trading activity comes from Asian investors. It is not difficult to do, but customer service is non-existent.
I have been reading about some rumors that an MIT project is developing something that will bring litecoin into a much brighter light, but Charlie Lee, the developer of Litecoin knows nothing about this.
Anyway, if what we talk about on the podcasts is remotely true and national currencies continue to have their confidence erode, then the cryptocurrency platforms have room to grow as they continue to muscle into the space that is currently occupied by the fiat currencies of the world.
For now, I will continue to accumulate these cryptocurrencies as a lark. If I lose the money I put into them, It won’t change my life.