There is a lot of talk these days about the value of the digital currency called bitcoins. For most people, they see it as a safe haven investment and a way to store their money in a place that is secure and where there is no risk of government seizure or legal action. Most investors are unaware of how much bitcoins are worth in real terms, and this can lead them astray. Before investors dive into the market and start buying and selling bitcoins, they need to be aware of how the values of different forms of bitcoins vary from time to time.
To make a long story short, the value of bitcoins will go up and down depending upon the state of the global economy. The US government has started the bitcoin futures market so that people will have an easier time buying and selling the digital currency. China has taken measures to curb capital outflow by tightly regulating the money printing process. All eyes are on the US at the moment and that means tighter credit requirements and less money printing. That has had an effect on the value of bitcoins, but as the US economy starts to rebound and grows stronger, the value of the coin will likely rise.
Since there is a lot of speculation around the value and price of bitcoins, you might wonder who the experts are who advise investors on the subject. The answer is simple: the chief investment officer of a well-known investment firm. This person keeps a very close eye on the markets and looks for any sign that the value of the coin might go up. He sees the potential for profit in the digital currency and is not afraid to make recommendations to clients. He does this because his duty is to look out for his clients’ best interests.
Another member of the elite circle of all-time high profile investors is Scott Thiel. Mr. Thiel is the co-founder of PayPal and also an investor in a number of other digital-asset investing companies. He regularly advises both novice and experienced investors on the topic of digital currencies and how to get started. He knows all about the ups and downs of the markets and is always on the lookout for new businesses that could provide a service to his customers.
Two other members of the all time high end group of global investing bankers are Paul Volcker and Michael Cohen. They are members of the New York Stock Exchange (NYSE). They do not trade on the exchange floor, but instead conduct all their trades through their private investment firms. They are not always selling shares of bitcoin prices but rather buying them as private investors. They regularly advise their clients on how to buy, sell and trade stocks and options using the distributed ledger technology. In fact, their advice has helped make the option of trading with private equity firms much more accessible and attractive to many small investors.
The third member of the circle of all-time high profile investors is Tim Draper. Mr. Draper is an angel investor who is active in the exchange market. He regularly mentors new investors on the topic of how to best utilize the distributed ledger technology behind the bitcoin halving. He is also actively involved in the dialogue about the future of the bitcoin protocol and the digital asset assets that are backing it. As a consequence of the discussions he regularly convenes with various industry experts on the subject of the future of the world wide web, Draper has had his own share of conversations regarding the future of bitcoins and the potential impact that the technology would have on traders and investors around the globe.
All three members of the circle of very wealthy investors clearly understand that a major part of the financial system in the U.S. revolves around the efforts by the federal government to provide a coherently functioning base for the issuance of currencies. With regard to the bitcoin frenzy, this aspect of the economic system is clearly showing signs of strain. Between the stimulus being implemented and the ongoing debate about whether or not the Federal Reserve should continue to pump $600 billion into the markets each month, many believe that the last quarter of this year will witness a sharp contraction in the monetary base.
Whether the impact of the stimulus will be felt in the form of a contraction in the availability of dollars on Wall Street remains to be seen. But one thing is clear: regardless of the impact of the Federal Reserve’s actions on the digital-asset markets, one thing is certain: the euphoric ride into which investors have been riding since the beginning of the year is ending. For those who invested in the hopes of seeing a surge in the value of the digital currency, this news could spell bad news. If you’re in the markets (and if you’re an American citizen), you need to make some adjustments now.