I made my first cryptocurrency purchase a few years ago and have continued to incrementally add to the position over the years. When crypto first appeared, I never really cared about cryptocurrency and viewed it as a fad. I said to myself crypto would be something that would be popular for a little while and then disappear into oblivion. I also told myself that if crypto evolves into something useful in the future, then I should have at least a little bit of exposure to it.
In the last few months, Bitcoin has continued to drop in price in tandem with technology stocks. The sudden price drop comes as no surprise given the nature of how Bitcoin works and the comparative newness of the asset class. Many believe that additional regulation is needed to give consumers confidence to use crypto as a store of wealth and a medium for transactions. While I think Bitcoin and other cryptocurrencies are (or will be) useful, I currently view Bitcoin as a speculative investment.
I believe in the future of crypto and the positive potential impact it can have on the world, especially in places around the world with unstable governments and volatile monetary systems. As the world enters a new digital asset/decentralised finance era, I think Bitcoin and other cryptocurrencies will slowly become more widely accepted as a normal form of payment. The potential impact of Bitcoin and cryptocurrency is enormous, but I think an even bigger evolutionary change will be the transition from Web 2.0 to Web 3.0. I look forward to diving deeper into this topic in a future blog post.
Cheers – KM