A few years ago, Bitcoin was an afterthought (or a non-thought) to most on Wall Street.\u00a0 It was so poorly understood that plenty of traders couldn\u2019t even tell you the difference between Bitcoin and blockchain, the digital ledger technology serving as the heartbeat of cryptocurrencies.<\/p>\n
Most analysts were bearish, deriding crypto in saying there was no future in digital currencies.\u00a0Wrong.<\/p>\n
Alas, May 2017 arrived and the Bitcoin beast awakened, starting a run from around $1,000 that peaked near $19,000 in December that year.\u00a0 A collapse subsequently happened, which saw Bitcoin testing $3,200 again in December 2018.<\/p>\n
The Bitcoin bears got to stand on the mountaintop and shout how they were right; that Bitcoin is a worthless asset.\u00a0 Wrong again.<\/p>\n
After a horrible 2018, the price of Bitcoin is back on the climb in 2019.\u00a0 Yesterday, Bitcoin neared $8,800, a move of about 175% from the December low.<\/p>\n
What is happening is akin to the cannabis green rush.\u00a0 Remember less than a decade ago when nearly all so-called pot stocks were pink sheet-listed and dubbed scams by blue chip investors?\u00a0 Still, retail traders poured into the industry, creating massive volatility as buying and selling ebbed and flowed in tumultuous fashion on industry-related news.<\/p>\n
Over time, the volatility as become more subdued.\u00a0 International beverage behemoths have jumped into the cannabis industry.\u00a0 There is a growing number of companies that trade on national exchanges like the NYSE, Nasdaq and TSX.\u00a0 What\u2019s next?\u00a0 It is only a matter of time before a major player like Canopy Growth (NYSE: CGC) or Tilray (NASDAQ: TLRY) joins the S&P 500.<\/p>\n
What is going on with Bitcoin, crypto in general and blockchain is normal for an emerging, misunderstood market.\u00a0 Make no mistake about, though, this is big business, as evidenced by Bitcoin sitting with a market capitalization near $160 billion on Thursday, which just adds to big swings and volatility.<\/p>\n
Once people understand all the uses for the decentralized ledger of blockchain and the fact that many digital tokens are technology plays \u2013 not just a digital currency in the simplest sense \u2013 this industry is going to calm down and trade at a lower beta.\u00a0 Points in case, take a look at Ethereum or an upstart like SonoCoin.\u00a0 They\u2019re not looking to disrupt online banking or PayPal (NASDAQ: PYPL) like Bitcoin is, they\u2019re technologies that can change and improve upon data storage, data transfer and all the associated fields, such as marketing.<\/p>\n
Mainstream Wall Street analysts are notoriously slow to move into new industries.\u00a0 Those groups want to see an industry mature and become more stable, \u201cde-risked\u201d if you will, before giving any credence to it.\u00a0 We\u2019re experiencing a seminal period with digital currencies and it\u2019s just a matter of time before majors start to crop up with Wall Street support, just like happened in the marijuana space.\u00a0 Mark my words.<\/p>\n
At noon Eastern Time on Friday, Bitcoin is trading at $8,424.\u00a0 That\u2019s down some on the day, but up 15% from $7,322 a week earlier.<\/p>\n
Disclosure: The views and opinions expressed in this article are those of the authors, and do not represent the views of WallStreetPR.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.\u00a0 WallStreetPR.com has not been compensated for publishing this post.<\/p>\n","protected":false},"excerpt":{"rendered":"
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