Bitcoin Soaring to €100,000

31.08.2017 • Switzerland

Guest Contributor – Strategy and Council Letter (Switzerland) –

With enough distance, in general, ideas are cleared up … The important thing comes back to the front … and sometimes the distractions are silent …

In the end, the markets will continue – up or down – no matter what happens … and we can just try to adapt …

In reality, there is no method to predict the course of events in advance … but we can observe the past and draw conclusions …

No market has continued to rise to infinity … in general, once a decade or less, a crisis comes to “break” the rise in prices …

Sometimes a decline can last for years or decades. During the “Long Depression” of the late 19th century, real estate declined in many cities in France … and the economy suffered for nearly 10 years …

Similarly, in the 1970s, stocks did not climb – and the economy continued to drag on from year to year …

Today we look at the past … we watch the rise for 9 years … and we doubt the possibility to continue for a long time without “correction.”

Your questions about bitcoin …

At this moment, we have eyes on bitcoin, and crypto-coins …

Philippe Herlin gave me an interview Tuesday morning on bitcoin – to answer your questions on crypto-currency …

You can go on the video below to see the interview …

Here are some answers in the interview …

Will the creation of “derivatives” on the bitcoin change the bitcoin market …?

Philippe: So derivatives are synthetic products … it would be paper bitcoin. We know the danger of this … because we have the example of gold. Because gold has taken on an importance in the market, and it opens a door to all possible manipulations … so we see it in the course of gold … As when the price of gold rises, and everything Suddenly a large gold sale breaks up, one can say that a manipulation of a large bank or a central bank took place …

Does bitcoin first serve for drug deals and money laundering, as the critics …?

PH: So, it’s the bad reputation of the bitcoin … but now we can say that. One site indeed sold drugs, “Silk Road,” and was closed. Note that the bitcoin is not completely anonymous. To put money into bitcoin, you have to make a transfer from your bank. So we are traced. And above all transactions are public on bitcoin. So if one day you get caught and you can connect to an account number, you can see all the history of your transactions. So it’s not at all a good way to launder. People who want to do this go to the banks.

Madeleine: Would not it be enough to have only 1 crypto ..? Why do so many cryptos exist?

PH: The operating code of bitcoin is completely transparent. So if you’re a computer scientist, you can quite take over the bitcoin code, make some changes, and you’ve created your own crypto-change. What is the point…? If it’s just copying, it has no interest. But cryptos have different characteristics. There are crypto-currencies that meet different needs. Ether, for example. It’s easier to program on the Etherch blockchain than on the Bitcoin blockchain. It is an ultra-competitive system. Anyone can create their crypto-change.

MC: How does it work …? How long should it be kept …? In which country is the bitcoin …?

There is no central body that controls currency, which would make it susceptible of being redeemed by a state. All transactions are made public at the same time, and that’s how the system works. So it works through a decentralized system. The price of bitcoin depends on supply and demand. And the bitcoin is bought or sold on market places. No authority imposes a price. The market is liquid on the bitcoin, ether, and large crypto-currencies. Buy or sell its bitcoins is a matter of minutes on a site …

How long to keep it? I defend a long investment. Because we are in the early stages of crypto-currencies. I think we are at the beginning, so I advise to buy and keep several years.

Pascal: What are your projections for the prices of crypto-currencies …?

The amount of ether is not limited. Bitcoin, is limited to 21 million pieces. Over several years, ether could increase and then decline in value. The quantity of bitcoin is limited so the price should continue to climb in the long term.

What price to expect for the bitcoin …? Some give 100,000 euros per piece (against 3,500 today). That’s $ 2 trillion for the bitcoin market. It is still not much compared to the asset markets. This is the balance sheet of the BNP. Or the debt of France. So for me 100.000 euros this is a reachable figure. It is an asset that can add value. Even at 100,000 euros, there will still be potential behind. This prediction is not unrealistic.

Denis: Where to buy cryptos …?

There are plenty of market places for bitcoin and ether. There are well-known platforms. For some of the smaller cryptos, it is a somewhat more complicated process. Sometimes you have to buy bitcoins and then put them in the crypto.

Jean-Jacques: Should I stick to the bitcoin …? Are there ways to invest with “leverage” in the sector …?

I have nothing against devoting his investment to bitcoin and ethereum. If there is a currency that can outperform the bitcoin, it is the ethereum. Perhaps the ethereum will supplant the bitcoin. Then, why not have a little fun – put a few hundred euros – on other cryptos. We must not necessarily forbid it.

As for the leverage effect, we are not at all in the ETF domain, future contracts, etc. We buy bitcoin. Point. There is already a lot of potential without leverage. There is no need to ask for butter and butter money … there is already a lot of butter …!

Note: You can view all the questions and answers with Dr. Herlin, by following this link.

Truly,

Henri Bonner

-Read more at www.lettre-strategie-conseil.com (French)-

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