Crypto Currency Rabbit Hole

Over the last several weeks I have been getting deeper and deeper with my crypto currency investments and knowledge.

I have been a long time holder of bitcoin and purchased my first few way back in 2013 when 1.0BTC was roughly $50. I bought a couple more last year.

In the most recent couple of months things have been exploding. The value of Bitcoin is up 75% in the month of August to a high of over $6000.  Needless to say I wish I bought more.

For the last couple of months I have been watching my portfolio more closely and getting nervous about the security of my bitcoin assets as well as the lack of diversification of having everything in bitcoin when there are hundreds of newer and technologically better and unique blockchain based currencies and tokens available to buy.

This past week I was reading a lot about ICOs and various new coins that are becoming available.  I bought some Ethereum, BAT and ARK.

There’s some real hype around all this stuff that is bleeding into the public knowledge. Big companies are starting to test out some of the potential for applying blockchains to de-centralize various things. As a result demand is growing and valuations are skyrocketing.

For sure, there are some sketchy things going on and many of these coins are doomed. But it seems like this is a technology that just isn’t going to go away.

One growth investment thought experiment I’ve come to appreciate is to answer this question: “In 10 years will X be more or less relevant?”.  I think crypto currencies in general have a huge potential to become more important.  It’s something I’m planning on investing in much more over the next while.