Bitcoin’s Shining A Bit Brighter Now

Bitcoin’s Shining A Bit Brighter Now

8 months ago2 mins

Bitcoin’s shining as the global banking system comes under scrutiny, suggesting the cryptocurrency might finally have come of age.

What does this mean?

With bitcoin up more than 80% from last November's low, the king of cryptocurrencies seems to be marching to the beat of its own drum and side-stepping the financial mini-crisis. That alone is cause for celebration. See, for a long time regular investors looked at bitcoin the way mystified cavemen used to regard the sun – enticed by the growth it brought, confused about what made it rise, and worrying that they might get burned. That meant a lot of ink was spilled debating whether bitcoin was a kind of digital gold, an investment in blockchain technology, or something else entirely. But if bitcoin’s truly decoupled itself from regular assets like stocks and bonds, it's passed an important milestone – and whatever you label the OG cryptocurrency, that could win over plenty of fence-sitters.

Bitcoin rallies

Why should I care?

For you personally: Piece of the pie.

When the bigwigs at pension and endowment funds choose how to spread their billions, they pay close attention to how each asset class performs in different circumstances. And if cryptocurrencies like bitcoin keep plowing their own furrow, their diversification benefits could make them serious contenders when the big money’s being divvied up. Even a tiny piece of the nearly $200 trillion global asset allocation pie is an awful lot of buying power, and that’s worth bearing in mind when you’re designing your own portfolio.

The bigger picture: Work to do.

Cryptocurrencies were invented to defend folk against the ills of centralized banking systems, like – ahem – confidence crises. And although regulators will already be dreaming up ways to prevent future failures, the system will never be totally infallible. So with the present woes playing on investors’ minds, it's no wonder people are seeing bitcoin in a new light.



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