Global investment community focus is on bitcoin and crypto currencies. Bitcoin and crypto currencies are a replacement to the existing global currency system and are not backed by fundamentals. The rise in price of bitcoin is similar to the gold price at $380 in 2003. There is lot more potential for the rise in crypto currencies. The difference between gold and bitcoin is that bitcoin does not have any underlying fundamentals whereas gold is a physical asset. Once again it is a paper war versus physical. Crypto currencies are paper and one can create unlimited paper. Crypto currencies can rise for the next five years. The equipment’s needed to generate crypto currencies need metal. Without metals these crypto currencies will not be generated. Metals are very bullish over the six year horizon. But for investments less six years crypto currencies can give the best returns in any investment class.
Bitcoin as a means of exchange is here to stay.
This post was published at GoldSeek on 28 November 2017.