A lot of questions are still surrounding Bitcoin. After all, the digital currency has experienced some serious highs and lows over the years and the price at one point was well over $19,000. At the moment however it is under $6,000 per coin and this is not good to say the least. The first question here is which version of Bitcoin should actually focus on. When you look at the initial incarnation, you will see that there are in fact products of Bitcoin’s very own hard forks. Take Bitcoin Cash for example, this was created in August 2017 and then you had Bitcoin Gold in October. You also have Bitcoin Private as well. So which version do you really need to care about the most? None of them? Do any of them really matter? The hard forks essentially mean that merchants need to decide which form of Bitcoin they want to accept as payment. They also need to find out where they get their quotes from in terms of the products that they have. For example, if there are dozens of versions available then would this affect the price? What would the merchant prices be if they were to accept the prices for all 12 of them? It is possible for Bitcoin to dilute itself into oblivion. There could be a hard fork for absolutely everyone out there and it is more than possible for these to affect the whole project in general.
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Bitcoin at the end of the day is just one currency. At the moment there are over 1,000 shares and there are also 39 currencies. They have a market cap that is well over $1 billion. What happens when one happens to experience an inflationary coup? If this happened then 51% of the owner’s vote would then expand to the number of coins. It is possible for all cryptocurrencies to reset to zero. Warren Buffett has actually called Bitcoin a full-on mirage. Jamie Dimon who is the CEO of JPMorgan has called the whole thing a fraud. Agustin Carstens who is the GM for BIS has stated that cryptocurrencies are actually a bubble scheme and that they are also completely disastrous for the environmental disaster. Neither of them are a good means of payment and they are also not a good unit of account either. On top of this, they are also not suitable in terms of store value. Never the less, there are a lot of advocates around and Morgan Stanley and even Goldman Sachs have been trying to dip their toes from time to time. Some of them have even come out with their own cryptocurrency trading products. When you look at these investments you will see that the digital creation and even the assets on the market are prominent more now than ever before. On top of this, there seems to be some kind of dissonance between the public critique of the idea of having a private investment. These companies are choosing to invest in cryptocurrency which really will turn the whole thing around.
Maybe a shakeout is needed to try and cull a lot of the currencies from the herd but it does leave a few survivors that add something relatively special to the marketplace. That comes from Michael Novagratz and he is from Fortress Investment Group. He has stated that currencies will end in one huge crash and that they are even going to start bursting out of the dot-com bubble. This will exact a huge toll on the market in general but at the end of the day it is more than possible that it will help to create a mature and even a viable sector as well. The investors who have managed to come to terms with the idea of cryptocurrency and the ones who have even gone as far to accept it on a conceptual basis now have to deal with the harsh reality of actually owning it. Portfolio managers and even advisors have to address the practicality of investments and they also have to try and work closely to make sure that the things that remotely resemble currencies and even hedges are taken into account at the end of the day. Investors also need to try and contend with the uncertainty and even the risk that are being brought around by the economy and even the fiat monetary system. This means that there are so many opportunities and risks around, that a viable stewardship is continuing to have a huge presence.