Since I wrote about Bitcoin last week, it rose to $34,000, fell back to just under 31,000 and now stands at $34,243. What does it all mean? It is hard to say, but anyone who expects any asset to have a smooth ride has been doing to much toking on their hookah.
Considering the fact that there have recently been a number of predictions from well respected financial institutions regarding a rise in the price of Bitcoin. JP Morgan, one of the oldest financial institutions in the US, today came out with a long term price target of $146,000. They did not give a timeframe. But the recognition that Bitcoin is arising as an alternative to “safe haven” assets like gold means that the coin is no longer a fad or a purely speculative investment. It is slowly being accepted by major financial institutions.
It’s kind of funny, they are waiting for a reduction in volatility. What would be one way of bringing about that reduction in volatility? Having major institutions put more money into Bitcoin. We know there are some who have done so, but I think as a percentage of their total assets, Bitcoin still represents a miniscule holding.
And the presence of so many detractors, including many of the people on the financial channels, makes me more optimistic. Only visionaries truly see the value of an investment in its early stages. I believe Bitcoin represents a great opportunity to create wealth over the long term.