Bitcoins, Altcoins and Elon Musk - The Investor Report

Hello and welcome to the first episode of The Investor Report! We're trying something a little bit new this week. Join me and my co-host Christian as we discuss Bitcoin, other cryptocurrencies that you should look into investing in, and the future of cryptocurrencies!

As you might have guessed from the title this entire episode is going to be about Bitcoin, cryptocurrency and our speculation as to what will happen in the future with this new financial frontier!

The first thing we got to talking about was the fact that Bitcoin as well as most of the major cryptocurrencies took an absolute nose dive over the past week. Bitcoin hit a record $73,000 CAD before bottoming out at just $54,000 CAD only a week later.

Some speculation as to what caused this minor crash was that Bitcoin was just overvalued and needed to crash back down to reality. Others said this was just part of the natural roller coaster that all cryptocurrencies are bound to experience. The latter is backed up by looking at past trends and noticing that it's not unusual for Bitcoin's value to drop significantly in the middle of the first quarter of the year.

Our advice is to stick it out. If cryptocurrency value is only expected to rise in the upcoming years then now might be the perfect time to buy. If you're in it for the long haul like Christian is then selling probably never crossed your mind.

The next thing we talk about is speculation around how Bitcoin and other cryptocurrencies MAY be overvalued. Bitcoin in particular has been appreciating 200% faster than the mighty U.S. dollar. I know it seems strange to talk about not selling off your cryptocurrency and then talk about how it may be way overvalued in the next section but we need to talk about this. Is this all a bubble? It's far too early to tell. If you invest now you might be a genius in a decade or you could look back at this investment as the biggest mistake of your life! The only sure way to tell is to simply wait. Right now the cryptocurrency world is the wild west of finances and it'll be interesting to see who comes out on top when the dust settles; if anyone does.

Another thing to be cognizant of is the fact that Bitcoin could be the FIRST big cryptocurrency. Not the only big cryptocurrency. What we mean by this is that there's no telling what crypto will be used in ten, fifteen, or twenty years. Could Bitcoin fail? Is the next big cryptocurrency already on the market? Who knows! A good way to think about this is that the major video game producers of the 1980s are nearly non-existent. Think of Atari, Sega, Namco. All companies had major success in the late '70s and early '80s but by the time the millennium rolled around they just couldn't compete with Sony, Microsoft and even Nintendo. Could Bitcoin be the Atari of cryptocurrency?

Next, could major corporations gain too much influence in the crypto world? Elon Musk is a prime example of a sudden big player in the Bitcoin market with his purchase of 1.5 Billion a few weeks ago. If other large corporations or even countries jump on board with this idea we could see major entities holding the lion's share of the market. Could it be a good thing that such big players are taking interest in the crypto world or does this not bode well for the common investor?

Something else to think about is Robert Kiyosaki's claim that Bitcoin is the new gold. What he means by this is that Bitcoin, like gold or other precious metals, is a finite resource that can't be manipulated. The main difference is that Bitcoin is tradeable at light speed and much more accessible/storable than gold. Could Bitcoin cause such a seismic shift that it replaces gold as the "gold standard" in the finance world?

What do you think? Is this only the start of Bitcoin's rise? What other companies will jump on board with cryptocurrency? Will Bitcoin replace gold? We want to know what you have to say!