One of the hottest investments this year has been bitcoin. Had you bought US$10,000 of the digital coin at the start of 2017, by 1 September you’d be sitting on US$49,621.80.  Not a bad return for nine months.

And there are still plenty of optimist’s touting the coin.

Famed investor, Bill Miller believes bitcoin is a major technological disruptor and a catalyst for fierce change within the domain of finance. As reported by bitcoin.com:

The investment legend has assessed bitcoin’s potential with a long-term perspective in mind. With regard to the scale of fiscal innovation and creative destruction that bitcoin may unleash upon traditional financial and monetary processes and technology, Miller described cryptocurrency as being a catalyst for economic disruption on a scale that “we haven’t seen… in thousands of years.”

Miller believes if bitcoin only becomes 10% as popular as gold, then it’s potentially an US$800 billion market value. It’s a very bullish view as the current market value of bitcoins totals around US$68 billion, as show below:

Source: Coin Desk

Digital Coins Uncertainty

However of last, bitcoin has been hammered down by uncertainty surrounding the digital coins acceptance. China banned initial coin offers, likely to limit capital flowing out of yuan and into crypto’s. North Korea is believed to behind at least three bitcoin exchange hacks.

And its encouraged many bitcoin holdings to cash in now, fearing a decline will soon come.

Revealed: The Bitcoin rival that could make you a crypto-millionaire

Report Cover Image

In a brand-new special investor report, crypto analyst, Ryan Dinse shares why he believes Ethereum is the best crypto you can invest in right now and why it could: ‘blow past Bitcoin entirely in 2017’.

As you’ll discover, Ryan believes just a small $200 stake in this cryptocurrency could balloon into $2,138 starting now.

To download your FREE report called: ‘Why Ethereum Could Be the One Coin to Rule Them All’ and take out a subscription to Money Morning.

Enter your email address below and click ‘Send My Free Report’.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time.

Bitcoin Price Decline

During September, bitcoin has declined 15.97%. Each bitcoin now trades for around US$4,159.

And JPMorgan chief Jamie Dimon, is hardly surprised.

The cryptocurrency won’t end well’, Dimon said at an investor conference in New York. He’s predicting it will eventually blow up. ‘It’s a fraud’ and ‘worse than tulip bulbs.

Dimon went so far as to say, that he would fire any trader that would dare trade the coin. ‘I’d fire them in a second,’ Dimon said.  ‘For two reasons: It’s against our rules and they’re stupid. And both are dangerous.

Reported by Bloomberg:

Dimon differentiated between the bitcoin currency and the underlying blockchain technology, which he said can be useful. Still, he said banks’ application of blockchain “won’t be overnight”.

The bank chief said he wouldn’t short bitcoin because there’s no telling how high it will go before it collapses. The best argument he’s heard, he said, is that it can be useful to people in places with no other options — so long as the supply of coins doesn’t surge.

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars,” he said. “So there may be a market for that, but it’d be a limited market.”

But of course, Dimon can no more predict the future as you or I. You should even take Miller’s view with a grain of salt. If you want to learn more about bitcoin and make up your own mind about whether the digital coin is a good investment for you or not, click here.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning

Harje Ronngard

With an academic background in finance and investments, Harje knows how simple, yet difficult investing can be. He has worked with a range of assets classes, from futures to equities. But he’s found his niche in equity valuation.

Harje Ronngard

Read more

There are currently no comments.