A few weeks ago, we published an article giving a brief overview of the popular commodity/currency Bitcoin and provided some basic information about the trends the Bitcoin enterprise is experiencing in the marketplace.

Here is a quick review of what we know about Bitcoin today:

  • Bitcoin was created in 2009 by Satoshi Nakamoto as a peer-to-peer electronic cash system, primarily intended for online retailers.
  • Using “cryptocurrency,” Bitcoin allows for un-trackable, anonymous, un-taxable transactions.
  • In recent years, Bitcoin has experienced some security breaches, in which large sums of Bitcoin were stolen.
  • Bitcoin has also seen volatile market swings, leaving consumers and Bitcoin investors questioning its stability.

Due to recent increased demand and media hype, Bitcoin has seen a surge in price and experienced a severe short-term imbalance between supply and demand, resulting in a price bubble. Additional influencing factors in this scenario include speculators with a fear of missing out on the Bitcoin exchange, and the feedback loop between long-standing and new Bitcoin investors.

Furthermore, while there is general uncertainty about the Bitcoin enterprise and its stability, there is also a greater question looming about the consequences of the price bubble pop. Should investors hold on to their current Bitcoin platform, or should they adjust in preparation for a change in the value of this unique commodity?

At BlueRock Wealth Management, we are watching these dramatic events unfold with Bitcoin in the investments marketplace, and we are also available to assist with your short and long-term investments strategy. If you have questions or would like to evaluate your current investments portfolio, contact us today to discuss your financial goals.