A few quick thoughts on the current state of Bitcoin trading… If you don’t know what Bitcoin is, check it out.
Short and simple. Bitcoin is not a resource, and it can not be consumed. It is highly limited by its nature to be used solely as a means to measure, or as a currency. That means it’s value should not be able to surpass (collectively) the value of all our resource based currency, ignoring inflation (which is something that needs to be stopped anyway). So, really, if the 21 million Bitcoins possible (currently 18.7 million available) reach the value of all global currency (which is something like $80 trillion), then the value of an individual Bitcoin will likely not surpass something on the order of $3.5 million dollars per unit, at least not anytime soon. And at some point, will unbacked currency hold any value? Probably not.
So, really… the value of Bitcoin will probably only increase to around 60x its current value. It’s not a bad thing to have, but the days of getting suddenly and astronomically rich are probably behind us. That being said, some of the smaller “coins” tend to take proportionate and sizeable jumps when Bitcoin moves. Doge currently gains about 3-4x what Bitcoin does when the crypto market makes a leap. So yes, you could invest $1000 in crypto right now and expect to potentially turn it into $100,000 but you’re probably better off owning a bunch of rhodium. Dwindling resources are always going to be a good investment. That being said, the market will continue to rise while people continue to buy in. Why not?
Anyway, just my two dogecoins… 🙂
UPDATE, since Dogecoin doubled in value after I posted this: Doge will eventually tank — There’s no limit to the number of “coins” that can be produced.