December 21, 2017
If you have investigated and followed my cryptocurrency suggestions in the last couple of years, you have become a very successful investor! Congratulations! How exactly are my most recent suggestions working out?
This time in 2016 I suggested that it would be a good idea to buy and hold Ethereum (here). At the time, one Ether cost 7.60 euros on Kraken (a popular crypto exchange). A couple of minutes ago the price per Ether was 680 euros. That, as it happens, is an 8,847% gain in just one year. The price has been incredibly volatile, but quite clearly, being able to sit through it and wait has been a spectacular investment.
I have high hopes for the price to increase substantially in 2018. Ethereum has so much innovation happening to it and on it that usability and usage is almost certainly going to increase substantially. Ethereum should still be considered to be a very early stage, high risk and volatile asset, but the next few years will see such a lot of improvement that it is difficult to imagine a scenario where prices are not much higher 12 months from now.
In fact, I find it hard to come up with an investment that I am more hopeful for. Ethereum really does have the potential to change the world. Given that BTC and now BCH are blazing the trails of prices in the multiple thousands, I see no reason why Ethereum cannot also be priced like that. The only real question in my mind is when it will happen.
Bitcoin Cash Update
In August I explained why I was selling my Bitcoin and buying Bitcoin Cash (here). At the time I was selling BTC at all time highs, but the price has rocketed upwards since then, despite the chain becoming almost unusable at times. I still own zero BTC and do not imagine that changing for now.
When recommending BCH, the price stood at 525 euros. The price promptly dropped substantially, offering some nice prices to buy in at. Even better, they coincided with BTC rising. I was lucky enough to buy some BCH as low as 260 euros!
The price has swung around wildly, even as recently as today it was over 3000 euros, but as I was writing this, the price stood at 2720 euros. BCH is still very young and while adoption is moving quickly, it will continue to be volatile for the coming months.
This means that for this moment at least, my recommendation is up at 418% since August. This, of course, is misleading for two reasons. The first is that anyone doing as I did, switched their 1 BTC for 10 or more BCH. The leverage on that means that capital is accumulating very quickly. The second is that buying at a price below 525 was very easy for a few weeks. That 260 euro priced investment, for example, is currently up by 946% today. Since. August.
This has been another spectacular investment, which I believe will have a very strong 2018. What really excites me is the idea of a new generation of money, banking, transactions and financial services. The innovation is very exciting.
Related to this, I was lucky enough to meet Dr Craig Wright recently at an event and chat with him about his research work on BCH. Dr Wright may or may not be Satoshi (the founder of Bitcoin). I know what I believe. Either way, he is clearly a super smart guy that is committed to rebuilding finance through cryptography. I, for one, do not plan to bet against him.
The entire crypto space is growing so rapidly that most investments are performing very well. However, it is worth remembering that this is still a fledgling space and there are few, if any regulations. A great example is this year’s mega launch of Tezos, which was touted as a competitor to Ethereum. The latest news about Tezos is that founders are arguing, legal action, and a lack of development of their project. What will happen to investor’s ICO funds? Nobody knows for now.
My own approach is to try and select only the best coins or projects. To me, the returns and growth are spectacular enough without needing to go off piste into the super high risk ICO space.
With this in mind, I invested in a third coin early in 2017. Those investments are also up by hundreds of percent. This has been an amazing year to be an investor in new technology!
Once again, it goes without saying that this is for information and entertainment purposes only. Asset prices rise and fall and you should not hold responsible or sue an anonymous blogger if his tips do not work out. Please do your own reading and research (lots of it!) before making any significant financial decisions.