Bitcoin Nosedive? Not to Worry.

Bitcoin Nosedive? Not to worry.

written for Excel Investing by Zackary Richards

The first thing I tell people about cryptocurrency is that it is VOLATILE! It has been since it’s inception. Here’s a short synopsis of it’s ups and down over the years.

The reason for this volatility is due to its lack of an Institutional Grade Custodian. What is an Industrial Grade Custodian? it is a framework that prevents any institution that’s holding your money from running away with it.

It is the framework of the stock market. Which is why big money institutions are the premier players, because they know their investment are safe.

Well as safe as they can be in a volatile market. Aka 2008’s housing bubble. But they brought that upon themselves so…

But here’s the thing. Regardless of what the big money media is saying, big money wants cryptocurrency. It would save them billions in transaction fees, and big money REALLY likes saving money.

But they’re not going to invest because of cryptocurrency’s lack of an Institutional Grade Custodian.

But wait! Most people aren’t aware that Goldman Sachs fronted the money for Circle to purchase Poloniex a cryptocurrency exchange for a reported 400 million. Now why would Goldman Sachs front all that money for one of the smaller cyyptocurrency exchange?? It’s because Poloniex is going to become a SEC compliant crypto exchange AKA the Institutional Grade Custodian of cryptocurrencies. And once it does, baby, it’s “Everybody in the pool!!”

Here’s what Circle’s president Steve Neville and CEO Jeremy Allaire had to say about the purchase:

The cryptocurrency boom represents an inevitable transition: money evolving from cloth to code.

Over the next five to 10 years, they say, all sorts of traditional securities will become “tokenized”—divvied up into virtual stakes recorded on blockchains, the shared ledgers that power cryptocurrencies. People will own and trade small digital slices of everything from real estate, to cars, to houses, to patents, to stocks, to artwork—many of which may programmatically pay out dividends via software-defined “smart” contracts. Advocates say this tokenized future will make new asset classes accessible to smaller investors and lower the costs of transacting and investing, across borders as well as within them.

This is why I say don’t worry about Bitcoin’s recent drop. Remember big money doesn’t like competition. And there is only a fixed amount of Bitcoin, 21 million and they want it as cheap as possible so when Poloniex become SEC compliant, they are going to buy like mad.

As it stands right now there are crypto hedge funds being created every day. Listen, big money focuses entirely on profits, and they don’t invest and especially pay 400 million dollars for something they aren’t convinced will eventually pay off big.

Case in point Bank of America has just registered a cryptocurrency patent.

Ignore the smoke and mirrors of the nay-sayers. BUT keep in mind the majority of the current existing cryptocoins will likely either fail, be replaced by a stronger coin in that discipline, or be purchased outright by a major organization. So for you beginners in crypto, stick with Bitcoin, it is the daddy of all cryptos and the most likely to profit the most once big money jumps in.

Also remember that cryptocurrency is still very volatile, so I strongly suggest that you spend the next month or so reviewing the coins on www.coinmarketcap.com  and get a feel for them until Pololiex comes into play.

Cryptos will likely remain volatile until Bitcoin hits bottom again. That’s when big money will make their move.

 If you are interested in information like this, sign up for our newsletter at www.excelinvesting.com The economy is going to change drastically in the next few years, and we can show you how to take advantage of it

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *