Bitcoin just came up short of hitting $2,100 overnight as selling brought it back to mid $2,000 range.
Art auctions in NYC are seeing record prices for the work of former graffiti artists. A Jean-Michel Basquiat painting was sold last week for $110 million a Japanese investor.
So why are alternative investments becoming all the rage now?
Money is chasing these alternative investments, including high-end real estate and jewelry as fear of stock market topping out grows due to the ineffectiveness of the Trump Administration to get their agenda through of cutting taxes.
Economic growth while projected to hit decade highs this quarter, will — and I guarantee it — pull back to sub 2% growth for GDP. The economy is so bifurcated between the top percentage earners and middle class that growth will be difficult to come by unless a dramatic leveling of the playing field is achieved.
So where will the upper class put its money? Where it is treated the best. I don’t believe that has a lot to do with the dramatic rise of the cryptocurrencies just yet, but you never really know.
As acceptance in bitcoin and other digital “coins” grows the field could become very crowded and since there are a finite amount of bitcoins in circulation the price jumps could be astounding.
I have researched the availability of bitcoin investment advice at the large Wall St. firms servicing the 1 percenters and there is expertise and purchases being made for clients — or why else would they offer the service if it did not pay for itself.
Once this becomes common knowledge — to the 1 percent — $200 to $500 jumps in price may become far more the norm on the exchanges.
Hell, if a former graffiti artist who died of a heroin overdose at 27 can fetch $110M how absurd is $5,000 bitcoin in a few short weeks.