The spontaneous crypto currency Bitcoin is making headlines again. The digital currency has rallied this year from roughly $500 to $960. The last time Bitcoin broke through the $1000 mark was January of 2014. It tanked after the crypto currency exchange Mt. Gox was shutdown due to a hack that stole millions of dollars in Bitcoin. Most of you know about Bitcoin already and probably have some stashed away. However, the volatility in the crypto currency this year may offer a bit of predictability that you can take advantage of.
I noticed a big swing in the price after the Brexit vote that left many people uncertain of the global stock markets. Then again, right after the U.S. election, which has been compared to Brexit based on the magnitude that it would affect markets around the world. Bitcoin again started to soar over the past month to almost $1000. Why is this? Well, it seems that as people become uncertain in the financial system based on these global events, they invest more in Bitcoin as a hedge against uncertainty. This influx of money has made Bitcoin into a $15 billion dollar market.
I have held out hope for other crypto coins, but I don't think anything will compete with Bitcoin anytime soon. The next time Bitcoin takes a dip below $400 or so, I may invest in it. This is the same recommendation I would make to you, since it is highly volatile and swings quickly when the markets around the world become uncertain. Brexit and the U.S. election are the best examples of this. It wouldn't hurt to buy some when the price drops and then sit on them for a while. Who knows what they could be worth in another few years.
An ambitious Neuroscience Major, Entrepreneur, and Athlete.