Most people feel a little wary about cryptocurrency these days, especially if they bought near the bitcoin peak around $20,000 per bitcoin in 2017. However, the currency has surged back by 157 percent since late 2018, and many analysts predict it will go even higher by the end of 2019, pulling many other cryptocurrencies right along with it. Seeking Alpha reported this week that not only are electronic currencies trending higher in value, they are also trading in much higher volumes, indicating renewed interest in the asset.
“New bull markets are born from situations like this,” Seeking Alpha analyst Victor Dergunov wrote of the current trends. He added, “While volatility will persist, prices should continue to trend higher from here, and bitcoin, along with the cryptocurrency complex, are likely entering a multi-year bear cycle.”
If that is a little too formal for you, however, Erik Finman, a 20-year-old bitcoin investor who reportedly made his millions by buying bitcoin in his tween and teen years and who stands to gain quite a great deal from a bitcoin bull market, is happy to put these predictions into (his) context. “If you’re not a billionaire in the next 10 years, it’s your own fault,” he recently declared. Finman credits bitcoin’s relationship with blockchain technology for what he expects to be a guaranteed (and clearly meteoric) rise. He recommends buying and holding bitcoin and other cryptocurrencies, comparing them to a winning lottery ticket if an investor has “the intestinal fortitude” to hold the asset for “at least the next decade.”
Why People Listen to Erik Finman
Although Finman’s manner is brash, he tends to put his money where his mouth is. He currently holds about 450 bitcoins, the equivalent, at present, of about $3.6 million, and has not sold any since the currency hit about $18,000 in 2017. His cryptocurrency assets have qualified him as a millionaire since he was 19.
Finman believed, while in his tweens, that buying bitcoins would be similar to having purchased Amazon in its early days. He also compares “the state of bitcoin and blockchain as similar to the internet in its late-1990s and early 2000s infancy.” Finman stated the bitcoin rebound has been “a long time coming” and credited the current rally to U.S.-China trade tensions, which he believes are pushing Chinese investors toward the currency, support for cryptocurrencies from large Wall Street firms and dedicated cryptocurrency investment funds, and the annual Coindesk Consensus 2019 conference, which lends credibility to this type of trading.
Could the Fed Shut Bitcoin Down?
Finman may not have considered (or be taking seriously) the threat posed to his favored investment vehicle by one of the most powerful entities in the financial world today: the Federal Reserve. Some analysts say the Fed might decide to ban bitcoin and other cryptocurrencies to prevent them from superseding the U.S. dollar as the standard unit of international finance, and at least one member of the House Financial Services Committee (democrat Brad Sherman) has stated this outright. Sherman warned that bitcoin or other cryptocurrencies in the position currently held by the U.S. dollar could render economic sanctions largely moot as a diplomatic tool in the United States’ negotiating arsenal.
“Whether it is to disempower our foreign policy, our tax collection enforcement, or traditional law enforcement, the advantage of crypto over sovereign currency is solely to aid in the disempowerment of the United States and the rule of law,” Sherman added. Many in the federal government worry that individuals who owe taxes could place their wealth in bitcoin or other cryptocurrencies and avoid taxes in this way. Sherman wants the U.S. to ban both buying and mining bitcoin.
Even proponents of the currency do not dispute the risk. Instead, they argue a ban on cryptocurrencies would be impossible to enforce and blockchain is increasingly essential to conducting business in today’s highly electronic world rife with individuals hoping to steal private information and data. “Despite the volatile crypto markets, we’re seeing governments and businesses adopting blockchain technology at a rapid pace,” said bitcoin and cryptocurrency exchange HBUS executive Frank Fu.
Tell us what you think:
- Are you buying bitcoin?
- Should cryptocurrency be banned?
- Will you be a bitcoin billionaire in 2029?
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