18 Dec 2020
Investing
December 18, 2020 glacierinvest

The recent run up in Bitcoin has been nothing short of crazy. I mean it’s doubled since the first part of November! I’m not going to pretend I know for certain why it has run up so quickly but I have to imagine increased institutional interest along with Square’s and Paypal’s announcements last month have meaningfully contributed to the run up. This is on top of the usual argument for Bitcoin: ongoing debasement of fiat currencies. I’m sure a Democrat winning the White House has added a little more fuel to that fire. I wish I could say this makes sense or it doesn’t make sense but I’m not sure anyone can. For now, the trend is up and to the right and doesn’t look like it’s going to be slowing down much.

Different this time?

I hate to say it but I think the run up this time is different than the big run up three years ago. There isn’t as much hype in the general public. I say this anecdotally and referring to a Visual Capitalist tweet from last month showing the number of Google searches is a quarter of what they were three years ago. Additionally, there are substantially bigger players getting involved as well including Square, Paypal and institutional investors. Now, I’ve had some random people ask be about Bitcoin but it doesn’t seem to be as popular of a conversation starter as it was three years ago. Of course, that could have something to do with lockdowns and social distancing.

I don’t know what the  endgame is but there is a ton of momentum, suggesting a continued climb higher. Additionally, there’s a favorable institutional mindset change towards digital currencies in general. There’s also a narrative in place that the monetary system is undergoing a change that it needs given the high levels of debt and other limitations of fiat currencies. In other words, the monetary system is evolving. Digital currencies appear to be at the forefront of that change. China recently launched its own digital currency and other nations are sure to follow. Whether Bitcoin is the big winner in all of this remains to be seen. I’m having a hard time visualizing how it is since governments aren’t likely going to let go of control over the monetary system. Maybe I need a bigger imagination though.

Warranties & Disclaimers

 

There are no warranties implied.

Glacier Investment Management (“GIM”) is a registered investment adviser located in Kalispell, MT. GIM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. GIM’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of GIM’s web site on the Internet should not be construed by any consumer and/or prospective client as GIM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by GIM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of GIM, please contact the state securities regulators for those states in which GIM maintains a registration filing. A copy of GIM’s current written disclosure statement discussing GIM’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from GIM upon written request. GIM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to GIM’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.

Powered by