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The bitcoin stops rally: is a New bubble or investment opportunity?

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The bitcoin stops rally: is a New bubble or investment opportunity?

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The markets are shaken from time to time by products that break rules and escape out of forecasts and this is more or less what is happening in last few weeks with bitcoin, a criptomoneda by that not many gambled on its origins way back in 2009 but at beginning of a month-to-point was to achieve $ 5,000. From 1 of September, virtual currency has corrected more than 22% to environment of 3.850 dollars on Wednesday, according to data from Coindesk. Despite this, its vertiginous evolution has begun to generate doubts; so many, that ceo of JP Morgan, Jamie Dimon, has warned that bitcoin is "a fraud", a currency "that is not going to work" and I can not think that anyone who invests in a currency of "invented" is someone "really smart".

The question is inevitable: are We facing a new bubble, or bitcoin is really an investment opportunity? "We struggle to think that it's a fraud. Its value is based on free exchange between suppliers and demanders, and re is no coercion or pressure by any party," says Rodrigo Garcia, an analyst at XTB.

Garcia speak to you in any case of a "substantial increase in prices", taking into account that at beginning of year not even reached $ 1,000 (997). Its risks, says, "y are exactly same as any or currency. That is to say, it loses its value and this only happens when market loses its confidence in it."

Something that, in light of evident appreciation, that is not happening. In fact, bitcoin and or criptomonedas as er begin to establish itself as values shelters in front of or more traditional such as gold, which yesterday was priced at 1.332 euros an ounce.

Rise and prospects

In a recent report by Saxo Bank, Kay Van-Petersen, strategist and global-macro of firm, predict that within a decade will be negotiated at 175,000 million of bitcoins each day, compared to 37.800 million today. "I have no doubt that criptodivisas will survive in long term. This is not a fad, y are here to stay. There will be between two and three criptodivisas main and bitcoin will be one of m, because it is most negotiated".

The rise of virtual currency has been linked in recent months to growing popularity that it has gained in countries like China, Venezuela or Argentina. In asian giant, many people use virtual currencies as a way to take money out of a state of bypassing strict capital controls and same happens in cases of south america. Also manner in which transactions take place, without intermediaries, and anonymously, has fostered trade and led to placements of bitcoins or Initial Coin Offerings (ICOs, for its acronym in English) as a method of funding between small businesses and start-ups.

The euphoria has been such that Chinese Central Bank banned last week this kind of posts and only a few days ago, british regulator warned of "high risk" that involve this type of investments.

Both of m are one-off measures in midst of lack of regulation on matter. "Sovereign governments have addressed in part risks related to financial integrity, consumer protection, tax evasion and regulation of capital movements, but future implications of technology blockchain go beyond coins, and are difficult to understand today", pointing from UniCredit.

investment Advice

if that weren't enough, protagonists are multiplied, and along with bitcoin, also er moves unstoppable. Born in 2014, this criptomoneda incorporates many of features of his rival and adds significant improvements in its exchange platform ereum. Its value has increased from 8,2 dollars of beginning of year up to 275 that was yesterday, although it reached a maximum of 396 dollars in past month of June.

With growing interest in virtual currencies, experts recommend caution. "Could be an alternative of investment great, but not going more than 3% of portfolio," says Kay Van-Petersen.

Rodrigo Garcia believes that investors should know product very well in that want to invest and be clear on time horizon who are willing to endure to obtain returns attractive because, if something is clear, is that criptomonedas will survive in long term.


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