In mid-sixteenth century the Tulip was introduced in the European markets by traders from the Ottoman Empire, and soon became the status symbols of the elites in the Netherlands and other European countries. By early to mid-1600s the Tulips were traded on the Stock Exchange of Dutch towns, and soon the speculation ensued at a fervent pace, making Tulips the most price commodity in the European markets. Though, by 1637, it all came crashing down when the Tulip market crashed leaving many Royals and pheasants in financial ruin, alike.
If you are serious for crypto investment and a history buff, then the above recount of the infamous ‘Tulip Bust,’ should make you nervous about investing in Bitcoins, or any other cryptocurrencies. Last Thursday, Bitcoin was trading at $19,000 in South Korea, before closing at about $16,600 in the US. And, to keep it in perspective, it was trading at $1,000 at the beginning of the year 2017.
Like many new investment products, Bitcoin and crypto investment have their own detractors. For example, Warren Buffet – in 2014 – called the currency worthless, while the Vanguard Group founder Jack Bogle warned the Council on Foreign Affairs to avoid Bitcoin like the plague.
Despite, its negative attributes – the cryptocurrencies DO deserve a place in your portfolio mix. The primary reasons for having a combination of Bitcoins, Ethereum, Bitcoin cash, and Bitcoin lite are as follows:
- The cryptocurrency market is in its infancy. What we are seeing now are the growing pains causing the market to be volatile as new traders come into the market following the notoriety gained recently by Bitcoins,
- Crypto Investment is becoming a Norm at many places around the world. In that case, the Bitcoins and other smaller denomination coins will attract more and more attention from Institutional as well as Retail investors,
- With the introduction of Crypto futures, the Cryptocurrency market is expected to stabilize with increased liquidity and has gained more credibility due to CBOE and CME launching of the futures,
- For large ticket and luxury items, it is the safest form of a currency transaction,
- As the Corporate and retail businesses start accepting the digital currency, its increased demand may help the price move up, and
- Finally, it has the safest form of infrastructure with its diversified storage among multiple computers, hard wallet key security feature, and advanced blockchain technology.
- It is, albeit, hard to predict the future. Though, today the world economy is more agile, robust, and is helped by news traveling at the speed of an electron. Compared to Tulip Bust days, the world financial system today is more resilient and can withstand shocks that might try to destroy the world economic order. From that standpoint, the current Christmas Rally in Cryptocurrencies looks like a Bonanza that should be enjoyed if it lasts.
Platinum Trading Institute (PTI) provides training to the traders just to benefit from these types of opportunities. Learn cryptocurrency trading fundamentals and advanced skills to negotiate during the good or bad market times from PTI’s experienced mentors, who will work with you on a one-on-one setting. Sign up for a two-day free course on Platinum Trading Institute’s website: www.Platinumtradinginstitute.com