Bryan - Singapore
What's next for Bitcoin?September 2017
Another day, another Bitcoin controversy. Say what you like about Bitcoin, boring it's not.
So what to make of the latest China ban? By the way, I deliberately use the singular, referring to the ICO ban, because even though there have been quite a few reports published, both by dubious and legitimate sources, that China is also banning the trading of Bitcoin on exchanges, there's been no confirmation of this as of today, September 12, 2017.
Of course confirmation may come at any moment. Or not. We'll just have to wait and see. Then again, waiting and seeing is something the Bitcoin community is pretty good at.
Meanwhile, the mere news about both bans have ratcheted up apprehension somewhat, which obviously is reflected by Bitcoin's value. To wit, Bitcoin peaked at S$6,6k+ and has since been hovering around $5,7k+. This constitutes a shedding of $900, not exactly chump change, but pretty much par for the course for Bitcoin.
Mind you, when you think about it, given the potential damage a China trading ban on BTC could wreak on Bitcoin, at least ostensibly, the fact that we're still on $5,7k bespeaks of the wholesale confidence in this cryptocurrency.
Of course this is something we've been seeing from Bitcoin's very early days: Panic selling, oftentimes followed by a full-on crash, followed by lots of Bitcoin obituaries, followed by a Phoenix-esque resurrection.
Rinse and repeat.
Meanwhile, here we are, at a very decent $5,7k. And the longer we retain this level, the more we're consolidating here. Plus the fact that it also helps reduce volatility. All in all, you could say that Bitcoin is gradually maturing.
Ok, what else is noteworthy during these days? One topic of concern that often comes up is the question of withdrawing Bitcoin from exchanges.
It seems quite a large proportion of potential Bitcoin punters are ready to participate in the Bitcoin market, but what's holding them back is the vexing worry that when it comes to siphon off any profits, their Bitcoin exchange won't allow it. Worse, what if the time comes, let's say years down the line, to withdraw the entire Bitcoin sum, principal, yield, the lot, and the exchange blocks the withdrawal?
The thing to remember is that even though Bitcoin is a relatively new development, withdrawing Bitcoin from exchanges has been going on for years. And whilst there have been a number of dodgy exchanges along the way, the ones that remain standing until today can be said to be reliable and established. They would have too much to lose, a prosperous future for one thing, by randomly appropriating their customers' funds.
In other words, I wouldn't worry about your exchange withholding your funds. If you're going to be worried about something, I'd worry about whether you will have any funds left to withdraw at all. After all, let's face it, in spite of its immense promise and huge potential, Bitcoin can still go either way.
And on that note, let me end this column with a few words of wisdom.
Bitcoin, the world's most valuable cryptocurrency, is, in more ways than one, as good as uncharted territory. And whilst we do know that Bitcoin's future will continue to show both massive growth and considerable crashes, there isn't a single soul anywhere who knows when, why or how events will unfold exactly - there are simply too many variables and too many unknowns.
New Bitcoin applications will be conceived and promulgated. Governments will likely take ever more active roles in regulation. And interest in Bitcoin will continue to grow. All this will happen against a backdrop of a Bitcoin oscillating, at times wildly.
In view of this, the main question to ask is: Is Bitcoin a serious investment vehicle for you? Of course, given the many uncertainties, it's unlikely you'll receive an unequivocal answer. In fact, the only certainty in this volatile Bitcoin market is that Bitcoin, in one form or another, is here to stay.
Now, if you've decided to commit to Bitcoin, it's good to note that Bitcoin is an asymmetric investment. That is to say, in the event its value plummets, perhaps even reaching zero, make sure that the scale of your loss is acceptable and never more than that. On the other hand, if over the next few years Bitcoin continues to make the same kind of strides in becoming the global digital reserve currency that is has in the past year, then gains in excess of a 10-bagger are not impossible.
I wrote the above article myself and it expresses my own personal opinions and views on Bitcoin. I am unable to guarantee that the information and/or results will be correct. Furthermore, whilst I own some cryptocurrencies, I do not receive compensation for my writing and I have no business relationship with any of the companies mentioned in above article. In addition, I am not an investment advisor and above article is for purely informational purposes. Investors are advised to personally undertake adequate due diligence, or to consult a financial advisor in order to determine what assets - if any - are appropriate to invest in.
Bryan, a Singapore PR, has spent two separate stints in Singapore, spanning close to two decades. As is the case for most non-techies, although Bryan's first exposure to Bitcoin was around 2010, it wasn't love at first sight. However, Bitcoin's impressive resilience, meteoric rise and world-changing potential have converted Bryan, to the extent that he has now pivoted to fully commit to Bitcoin.
By all means publicize above article in your blog or magazine. A link back would be appreciated.
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