Back in May I made some quick money buying Ethereum. After that I tried selling when it dropped and buying it back when it went up again. Ultimately I lost some of the gains I would have otherwise made. I also bounced around between Ethereum, Bitcoin, and Litecoin. There were some big price drops. By September 22nd I had managed to turn $2100 into $1185.88. I finally decided to just buy Bitcoin and hold it regardless of where it was on a day to day basis. In the last month it's risen faster than the other two. It went from a low of $3560 to $6120 today. So now I'm at $1961.31. I'll break even when it hits $6544. There are signs that Bitcoin is going to keep going up. CNBC reported in a survey that the majority of people surveyed think Bitcoin will hit $10,000. Then you have articles like this: https://www.cnbc.com/2017/10/19/josh-brown-goes-down-the-bitcoin-rabbit-hole-commentary.html Here's just part of it: The percentage of people in this world who are even aware of crypto currencies or their potential is effectively zero. The asset class itself is only $170 billion as of this week. That sounds like a lot, but compared to other asset classes or commodities or currencies, it's a joke. The stampede is coming I mentioned a few weeks back that you can practically smell it in the air – the big money is coming into this space. I can't imagine how that doesn't blow the price up into the stratosphere. For all of Jamie Dimon's protestations, his firm is experimenting with cross-border transfers using blockchain. So is every other major financial institution – or at least they're thinking about it and planning it. The big rumor going around is that Goldman Sachs is going to launch market-making in crypto currency for their clients in the third quarter of 2018. I don't know if that's true or not, but multiple people who don't know each other are saying it. And why wouldn't they? If that's what their customers are asking for (and they are), then of course they will. This is the institutionalization of something that right now is still on the fringes of finance. What will that mean for the prices of coins? Pensions and endowments Another thing that was kind of hinted at – pension and endowment money dipping a toe in. We're talking about trillions of dollars in these pools. If even 1% of that starts looking for allocation, forget about it. Ari Paul from Blocktower says the pensions aren't coming in until the custodian issues are worked out. With a traditional investment like a stock or a bond, your big risk is that they will drop in value. With crypto, you have that issue too, but then you have an added risk that you don't have with stocks and bonds: Your holdings can disappear from theft! Nobody worries about their stocks being stolen. Everyone worries about their coins being hacked. Solidifying the custody system is going to take time. Ari mentions that someone asked him "When will the University of Chicago buy in?" His reply is "Six months after Yale does." Everyone laughs. But it's true. The way Ari looks at it, right now, if someone at a college endowment takes the risk upon his or herself to buy Bitcoin, they face ridicule or a firing. But eventually, that career risk flips around the other way. Imagine someone from the Yale Endowment makes a splash in Bitcoin and gets written up everywhere for how forward-thinking they are. All of a sudden the CIOs at all the other endowments are being questioned "Why the hell didn't you do that? Did you even look at it?" This is how manias are fueled, by the way – institutional a-- covering. They all did this with hedge funds in the 90's and commodities in the 00's. It hasn't begun yet in this arena. ---------------------------------------------------------------------------------- My comments: Bitcoin is up 864% in the last year. I see no reason why it won't be $50,000 in a few years. It doesn't matter that a single Bitcoin is $6120 right now. You can buy it using any amount of cash that you want. $1000 in Bitcoin could easily outperform any other investment over the next three years.