What to make of the weekend carnage and recovery of bitcoin?
If I dare to make the comparison of bitcoin as the blue chip of cryptos, then I open myself up to criticism from the Initial Coin Offerings and block chain proponents.While I see the block-chain technology as being the future for smart contracts and fraud detection, I see the ICO market today as the wild, wild west of finance.
This is why i refer to bitcoin as a blue chip crypto. It has more than a decade of growing acceptance and robust resistance to competition of daily ICOs and prospective forks (offerings off of the bitcoin protocol) such as bitcoin cash.
As Wall Street has come into the crypto space over the last 6 months you see how their muscle has bolster bitcoin compared to other digital offerings with it being up 500% in 2017.
Ex-Fortress Investment Group hedge fund manager Mike Novogratz said he employed the traditional investment ploy of BTFD (buying the f*$#ing dip) and told Reuters that he jumped in and bought almost $20 million worth of bitcoin over last weekend.
The billionaire fund founder says his fund owns bitcoin, ethereum, and many other companies, and coins.
I equate bitcoin to Apple, while some of these token and ICOs are Twitter and Snapchat, but most of them are penny stocks that will never provide any return.
The point is bitcoin also provides the entry point to these other offerings as the uber currency of the space. Covert a piece of a bitcoin into ethereum to get some exposure, but it starts with bitcoin and that’s why it has the resiliency to survive five 20% pullbacks this year.