(Newswire.net — February 6, 2018) Singapore, Singapore — Last week, crypocurrency Bitcoin, dropped to an all time low; sparking sell off’s that drove the digital currency to levels just 50% of where it stood only six weeks ago.
Many speculators decided it was time to cash in among global news including:
-India’s Finance Minister stating their desire to “Eliminate the use of crypto currency” in it’s country
-A major hack of over $500 million from Japan’s Coincheck’s platform of the currency NEM.
-Key business leaders like Warren Buffet stating, “The sector will come to a bad ending.”
Emotions run strong in the markets, and none run as strong as the massive excitement, hysteria and confusion of crypto currency. According to CNBC, $100 billion of value evaporated in 24 hours on Friday amid concerns and worries that bitcoin’s price was being manipulated on a major exchange.
“What goes up, must come down” is a familiar saying, but rarely heeded by short-term investors. While the fundamentals of the blockchain remain sound and positive to most who understand it, the currencies themselves are not only volatile, but often have the life span of a moth.
Here today and gone tomorrow.
Investors who share a long-term view of the market, however, see last week’s event as nothing more than a natural (and expected) stepping stone to a brave new world of decentralized currency, seamless exchanges, and a loosening of banks stranglehold on individuals.
Is this the bottom? While speculators cash out and cry, should long-term investors see this as a buying opportunity?
Consider the following:
Bitcoin, the original giant of the industry has a few fundamental flaws. Namely, that the transaction time is painfully slow compared to some of the newer currencies. There are technological fixes being introduced, but so far, these are ‘overlay’s or patches to the basic flaw in Bitcoin’s system.
As far as usability, very few companies and suppliers are willing (or able) to accept digital currency as currency. If you can’t use a digital currency for transactions, what is it for?
One of the biggest concerns for speculators and investors alike is the lack of tangible capital behind the currencies. On one hand, since the USA went off the gold standard, even the mighty U.S. dollar is only backed by “The full faith and confidence of the U.S. Government.”
Is Bitcoin and the related currencies any different? One enterprising blockchain platform may have the best of both worlds and is currently undergoing an ICO (initial coin offering). BitCar seeks to allow a tangible asset that has outperformed the Dow, real estate and most of the fortune 500, to be traded.
Exotic cars. Before today, only the super wealthy could even dream of owning a top end exotic car. BitCar’s unique platform will allow anyone to own a small portion of an exotic car using their digital currency BitCar. Think of it like a time share for a Lamborghini.
“Digital currencies backed by real assets are rare. The platform is being built to offer tokens that actually have tangible assets backing them up. This asset class has a long history of stability and growth. Owners can peg their crypto to these hard assets seeking protection during times of high crypto volatility,” stated BitCar.
As speculators worry about when to ‘hold ‘em’ and when to ‘fold ‘em’ the smart money may be doing something very old school, but hardly boring.
Owning a portion of an exotic car within the structure of the 21st century’s new currency.