In December 2017, bitcoin hit a new all-time high of $20 000, having started the year at $950 – a 2 000% return for the year.
Yet for all its divisiveness, bitcoin has clocked a 210% compound annual growth for the last decade, making it the best performing asset over this period and the fastest asset ever to reach a $1 trillion market value.
“Firstly, there’s a good case to be made that we’re not at the tail end of a bull market, but somewhere in the middle as we’re not seeing the kind of volatility that we have traditionally seen after a powerful move up in price.
“In 2017, it was everyday people – known as retail investors – who were the driving force behind the price of bitcoin.
“Just two years ago, I was laughed at when I spoke about corporations buying bitcoin.
Weak employment numbers out of the US last week – with 266 000 new jobs created in April, well below the expected one million – reignited the bitcoin furnace and pushed its price to $59 000 from an April low of $48 000.
bitcoin miners are hoarding a higher percentage of newly-minted coins, while institutions are buying up an increasing percentage of available supply.
To say this is unprecedented understates how hard the money printers have been working, and in fact, it would actually have been impossible to physically print the amount of money equal to the credit issued by the US central bank alone.
So you just know that these factors will have a big impact on the price of things — stocks, real estate, gold, cryptocurrency relative to the price of money over the long term.
Measuring bitcoin’s stock-to-flow ratio (the number of newly-mined coins being added yearly to the total coins in circulation of 18.8 million has proven useful in measuring and predicting bitcoin’s price.
Morgan Stanley’s Ruchir Sharma, head of emerging markets and chief global strategist, recently analysed the role of the US dollar as an international reserve currency and compared it to five other great powers that previously enjoyed the coveted “reserve status”, going back to the 1400s: Portugal, then Spain, the Netherlands, France and Britain.
“Today, a payment system using cryptocurrency can send the same sum in seconds, for pennies,” says Sharma.
“We are still at the very early stages of the bitcoin and crypto evolution,” says Sanders.
Owning a basket of the top 10 cryptocurrencies, which currently accounts for 81% of the total cryptocurrency market capitalisation, is an easy, secure and smart way to invest over the long term in this asset class.
Smart investors know that being early is critical to success, and investing in cutting-edge crypto assets before they hit mainstream media headlines has been a winning strategy,” says Sanders.
You don’t have to try to guess which up-and-coming cryptocurrencies will become the next bitcoin since you’ll own a diversified basket of cryptos that gets automatically updated every month based on how the crypto market has performed.
Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
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