Pot of Gold scenario for Crypto/Bitcoin

This brings us to the possible best-case scenario for crypto. Safe, regulated exchanges and storing of your crypto coins. Recourse if you forget your “private key” password or are hacked and robbed of your virtual coins and ease of use from your phone just like Apple Pay.Therefore there is possibility of tremendous demand on the horizon.

Today, you cannot earn your salary, pay your taxes, buy a car, or buy a coffee with Crypto. However a number of established companies have commented in 2021 that they see a future where that will be possible. In addition, some large institutions such as money managers and pension funds are looking into the crypto asset class and if they invest in a significant way, this will likely bring stability and legitimacy to the crypto value.This class of investors typically buys positions to hold for a long period of time.

Publicly expressed interest in Bitcoin from established companies, and institutional investors along with enthusiastic “Reddit crowd” is what likely caused thetremendous existent and meteoric rise of Bitcoin and other Crypto this year, and although there could be a “Pot of gold at the end of the rainbow,”it may be sometime away and the ride maybe too bumpy for many.

A Famous Story About Tulips:

As a word of caution, whenever any investments seems defy all rationale and we stop trying to figure out if we should invest and focus on just trying not to miss out, its worthwhile to read up on the Tulip mania in 17th century. When tulips arrived from Turkey in 1500 they were so unique to the continent that they were viewed with the same exoticism as spices and oriental rugs. They became the essential luxury of the affluent. The middle classes began to obsess with them as well simply because they were expensive. In 1634 the Tulipmania in Holland was so prevalentthat it left all the other industries neglected. The scarcity argument was evoked then as well, as the tulips were so fragile that they can “scarcely be transplanted, or even kept alive”. The tulips were becoming more and more valuable and simply possessing some rare bulbs led to quick fortunes made. People began purchasing bulbs on credit believing that the value could only go up. In fact, the price of a single rarest tulip bulb traded for six times the average person’s salary. In February of 1637, the price of tulips suddenly collapsed over a course of a week causing massive losses and becoming the first Economic Bubble on record.