Most of you know that I believe we’re on the verge of an institutional boom in cryptocurrency. The necessary infrastructure to support this boom is being built, or launched, as I type this.
Major players such the New York Stock Exchange’s parent company (Intercontinental Exchange), Fidelity and the Nasdaq have signaled that they are preparing to enter the crypto market. If and when these institutions begin offering custody and exchange services to their clients, I believe this market will take off.
Bitcoin will almost certainly be the first cryptocurrency embraced by institutional buyers. It has the best brand name, the largest network, the best security track record and the biggest development community.
In recent months, the bitcoin community has shown it can weather a storm – and continue to progress at the same time. Innovations like Segwit (which makes data storage more efficient) and transaction batching (which drives down transaction fees) have dramatically improved the network’s performance. And with the Lightning Network making major progress in bringing transactions off the blockchain, the future of bitcoin is bright.
With that in mind, I have decided to officially add bitcoin to the Crypto Asset Strategies portfolio. I believe bitcoin is highly undervalued. The amount of progress that has been made in the last year is not reflected in today’s prices.
The risk/reward here, at or around $6,300, is strongly in our favor. So I recommend buying bitcoin here if you don’t own any – or adding to your position if you do.
Personally, I keep about 50% of my overall portfolio in bitcoin. If I plan to sell any, I will let members know at least one week in advance. (I don’t expect to sell any for at least a few years.)
I recommend buying on Coinbase or Gemini (assuming you are using fiat money). If you’re in a country that isn’t supported by these exchanges, there is likely a local exchange you can use.
Good investing,
Adam