The Year of the Bitcoin Comeback
Let’s face it, 2020 was a rollercoaster of a year for most people. Between the drama, the pandemic, and all those sourdough loaves we attempted to bake, it felt as though the world was strumming a sad tune. But over in the world of cryptocurrency? Well, Bitcoin was having its sweet sixteen party—up 125% year-to-date! A standing ovation for the best-performing asset of the decade. Who knew digital coins could be so cheerful?
Bitcoin vs. The Rest of Us
Meanwhile, while the price of Bitcoin flirted with new heights above $16,000, the masses acted like it was just a passing fad. It’s almost like we were all in a bad sitcom where everyone forgot to check their bank statements. As interest in Bitcoin reawakens, Wall Street is peeking around the corner, wondering if it’s time to join the trend or merely watch from the sidelines.
Flashback to 2017: The Great Bitcoin Fiasco
Remember the wild ride of 2017? Bitcoin soared higher than my hopes for a normal 2020. But then came the crash. The introduction of Bitcoin futures was like inviting your overly enthusiastic uncle to a family gathering—everyone was excited, but it ultimately led to chaos. With enthusiasm deflated, Bitcoin endured a long hibernation, only to wake up in 2020 bursting with energy!
Wall Street’s Reluctant Embrace
Cameron Winklevoss, co-founder of an exchange that we won’t mention here (let’s just say it involves a lot of investment) reiterated a key point: institutions are still hanging back. Bitcoin has been the darling of main street, not Wall Street. But that’s shifting, and it’s brewing like a hot cup of coffee on a cold winter morning.
The Wealthy Are Getting Curious
As reported recently, it’s not your average Joe who’s steering Bitcoin’s new popularity; it’s the wealthier zip codes of New York and Silicon Valley. Investors like Paul Tudor Jones and Michael Saylor are stepping up to the plate. They’re investing in Bitcoin with the confidence of a kid insisting they can eat just one cookie and stop. Saylor even coined the phrase “the world’s best collateral” for Bitcoin—talk about setting a high bar!
Is Bitcoin the Future of Gold?
Let’s turn our gaze towards precious metals for a moment. Gold, which should ideally be shining like a star during economic turmoil, is up just 23% in 2020. Meanwhile, Bitcoin is like your overachieving cousin, flexing its 125% gains this year. Considering Bitcoin’s market cap is only a fraction of gold’s, some savvy long-term investors see this as the ultimate playground for risk-reward strategies.
The Price of Wisdom
When it comes to investing, hindsight is always 20/20, and individuals who took the leap to buy Bitcoin years ago are now likely sitting on their golden (or should I say digital gold?) eggs. As Tyler Winklevoss puts it: “Bitcoin is better at being gold than gold.” And let’s admit it, who doesn’t like a little healthy competition? So, while the average investor might have missed the boat in 2017, they may just find themselves hopping on this vessel sooner than later.
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