| Hi Taylor:
I've been tracking this Bitcoin surge and plummet and it's got me
dizzy. Any thoughts on what it means for cryptocurrency and the overall
Hi Monica: Two great questions with very different answers. The
transition from 2020 to 2021 was a wild time, and Bitcoin owners probably
got the most thrills, even as things have come back down. I'm gonna
answer your question in three different phases to keep things tidy.
The doubling of Bitcoin prices over a couple of weeks was a pretty
great sign for market growth. Buyers don't go that nuts unless
there are plenty of signs that money will be moving freely in
the near future, and activity within centralized banks and governments
makes it look like people aren't about to tighten the purse strings.
Hopefully, this means that Bitcoin's 25% nosedive over two days
isn't a sign of things to come. When it comes to this particular
stock, I think the positive trends are more telling than the negative
2. Bitcoin. Bitcoin remains the cryptocurrency to power all
cryptocurrencies. It's got the name recognition and has weathered
80% drops in the past. There's no need to look any further when
trying to assess the crypto market. Some people think a Bitcoin
might really be worth multiple hundreds of thousands of dollars,
which sounds crazy until you think about how high the price is
right now (even after the drop). If you went back in time and
tried to explain Bitcoin to yourself in 2000 or 2005, it would
have been a very confusing conversation. Based on the limited
number of coins and the proven technology, there's no reason to
expect a drastic, lasting change with this currency.
3. Crypto in general. Since you can't really spend your Bitcoins
anywhere aside from a handful of places, the value remains prospective.
The idea is very enticing and makes sense based on the trajectory
of all things tech. Nevertheless, with a single Bitcoin costing
a bajillion dollars and most people still walking around with
$1 bills in their wallets, there's no way we're anywhere near
a shift from fiat money to crypto. We might be inching toward
more of a shared space, where physical dollars are exchanged in
stores and restaurants and crypto gets more of a foothold in e-commerce,
but even that is a long way off. These digital coins clearly have
a ton of investment value and are worth having in your portfolio
if you buy at the right time, but you don't need to worry about
them taking over the financial world.
| If you missed
this year's opportunity to make hundreds of thousands of dollars on
Bitcoin, don't fret too much. You'll have more opportunities. Good
© Taylor Kovar
April 5, 2022
More "Go Far With Kovar"
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