As the price of Bitcoin inches higher towards the $10,000 mark, it’s become very popular to talk about the inflated bubble that we have created and the catastrophic consequences that will come of its inevitable collapse. I have tried to reserve judgment on the issue as of yet for several reasons, not the least of which is that I’m just not sure what to say. I don’t fully agree with the bubble assessment; it seems to be a go-to argument for the uneducated observer. But at the same time, I’m not prepared to preach the bull’s message and encourage all of my friends to throw their money at the ever rising price of Bitcoin.
Amidst this ongoing dialogue, I have decided that it’s about time for me to articulate a more coherent response to the issue of the bubble. So here it is:
First, I don’t think Bitcoin, nor blockchain technology more generally, is going anywhere; the underlying technology of the blockchain, and the role that Bitcoin plays as the “gold-standard” of an increasingly diverse market, is strong enough to carry a valuation of at least $10,000 per coin in the long-term.
With that said, it’s important to note the “long-term” qualifier here in an effort to give credence to the fact that the continuing development of blockchain technology and cryptocurrencies will not follow a linear path. There is no historical precedence for perfect straight-line growth, and I am very conscious of the fact that Bitcoin will likely be no different. Even the internet, one of the most disruptive technologies of our lifetime, had to overcome the dot com bubble of the late 90’s. But in doing so, companies that were able to ride out the storm have continued to achieve enormous growth well beyond the heights of any “overly-inflated” valuation that existed during the bubble.
So where does that leave us with investing in today’s market?
Simply put, I’m inclined to follow the traditional wisdom of “buy low, sell high.” My search for new investments follows a value oriented approach that steers me in the opposite direction of whatever appears to be trendy at any given time, which certainly includes Bitcoin, Ethereum, and Litecoin in the current markets. The time to buy Bitcoin, or anything for that matter, is during a crisis, when everyone is running away as fast as they can with tears in their eyes and no money in their wallets.
That’s not to say that Bitcoin is in a bubble; the underlying technology certainly warrants a valuation of $10,000 per coin. I suspect, however, that many people who are helping to prop up the current valuation haven’t put in the time to evaluate blockchain technology, and will be triggered to sell quickly as soon as the popular opinion changes, which, in the world of crypto, could happen very suddenly.
But in keeping with my interest in cryptocurrencies and blockchain technology, it doesn’t sit right with me to just take a back seat and watch the world unfold before my eyes as I wait for a more “ideal” time to invest.
I have therefore decided to turn my attention to crypto assets outside of the “Big 3” (ETH, BTC, and LTC) and towards Ripple (XRP), which seems to have just as much upside potential but is outside the typical perspective of the casual crypto investor. XRP can’t be purchased quite as easily as ETH or BTC, especially for an American audience given the fact that it’s not listed on Coinbase. This extra barrier to entry has helped it to remain a decent investment opportunity amidst rocket-powered crypto markets elsewhere.
Not only is the Ripple coin well-priced in the current markets, but the overarching value-proposition of the company itself is very exciting. Ripple utilizes the power of the blockchain to conduct financial transactions around the world cheaply and efficiently. It bypasses the convoluted and inefficient banking system to transfer money directly to and from clients through the blockchain, which saves people money and time and helps to make our economy more efficient and equitable for everyone involved.
To learn more about Ripple, I invite you to visit their website. If you’re interested in purchasing Ripple (XRP), you can view a list of available markets here. And for the sake of full disclosure, I own XRP, but am not affiliated with Ripple in any other way.
The explosive gains of Bitcoin and Ethereum have created a necessity for me to look elsewhere in the world of crypto for a good investment, which has been a wonderful exercise and yielded many fruitful insights. Nevertheless, I still recognize the inherent value of the major players within the blockchain space, and will be eager to continue to invest in their expansion once a more appropriate time comes along.
Comment below with your questions, and comments! Collaboration is an important piece of any good investing strategy!
Disclaimer: The thoughts, suggestions, and opinions expressed in this article do not warrant any form of investing advice. Any financial transaction or investment you make is done so by your own direction and does not in any way render the author of this piece liable for the consequences of said action.