Thinking about Bitcoin? Caveat Emptor..
The generally considered first recorded speculative market bubble was the great “Tulip Mania” that occurred in Holland in 1637. At its peak, the futures price for a single tulip bulb was more than 10 times the annual income of a skilled worker during that time. Besides being the first, Tulip Mania, thus far, remains the largest market bubble in history.
Bitcoin, however, is giving Tulip Mania a run for its money as the largest potential market bubble of all time. Its price has gone up over 18 times in 2017 alone, 64 times over the last three years, and currently stands as the highest increase in valuation for a single asset in history.
When will Bitcoin’s ride finally end? Obviously, no one can predict. Even noted Bitcoin bears, such as crypto pioneer Mike Novogratz, continue to invest into crypto currencies, while at the same time have been quoted as saying “This is going to be the biggest bubble of our lifetimes.”
While we can’t give specific recommendations regarding crypto currencies over this forum, we can say that we consider crypto currencies a form of speculation, even gambling, rather than prudent investing. Consequently, Bitcoin and its brethren live outside our universe of potential assets with which to buy. To those who wish to venture it alone, our only advice is: buyer beware!