Dear Reader,
Cryptocurrencies or digital currencies are the newest and hottest asset class that is changing profoundly the investing world.
Cryptocurrencies are akin most to stocks. They are a participation in a project or implicitly in the revenue or success of a certain company. Cryptocurrencies are basically stocks on steroids, meaning that cryptocurrencies are several times more volatile than stocks. This of course means, one can make a lot of money quickly, but also a lot of money can be lost quickly.
Bitcoin, Ethereum have risen many times, even hundreds of times in value since their introduction. Cryptocurrencies are a wonderful means for both investing and speculation. Since cryptocurrencies do not participate in the estate of the company if a company goes bankrupt, are not entitled to dividends and rank behind bonds, junior debt, preferred equity and common equity in the capital structure cryptocurrencies are a highly leveraged play on the future of a certain company that has issued the particular cryptocurrency.
Companies' stocks that are benefitting disproportionately from cryptocurrencies are Advanced Micro Devices, NVIDIA and Microsoft due to higher demand for computer processing units, graphical processing units and personal computers respectively.
Cryptocurrencies are a revolution in the investing world. Cryptocurrencies are changing how people invest and are basically a revolutionary asset class. The one danger to cryptocurrencies is the fact that global regulators - Central banks, securities commissions and so on might not allow the asset class to flourish. But the benefits to society from cryptocurrencies are just too great, in my humble opinion. What is a cryptocurrency? Essentially a digital currency. Banks have been allowed to issue digital currencies for ages by creating bank reserves through the money multiplicator.
In short, the future of investing and cryptocurrencies in particular is bright!
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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