Many celebrities have gone bankrupt due to huge failures in the stock market, but the case of Robert Pattinson could be put down to bad luck rather than poor financial judgement. After all, the 26-year-old actor, who plays the iconic role of Bruce Wayne in the DC Comics superhero film series, Batman, seems to have hit the big time, with his net worth easily surpassing a billion dollars. How did he do it? By betting on the right horse – cryptocurrency, that is.
In late 2018, following months of declining trends, the value of the digital currency, Bitcoin, took a nose dive, falling by more than fifty percent. This coincided with a massive sell-off across the globe of almost all traditional investments, sending shockwaves through the financial markets. Many famous investors and traders made fortunes over the next few months as the cryptocurrencies bucked the trend. One of the best-known examples is the Chinese economist and tech guru, Wei Zhou. He used ATR (short for Alt-Trading Robot) which is an automated trading tool that he designed himself, to make a killing, sending out thousands of high-performance, automated buy orders on the Bitfinex exchange. In less than a year, his team of economists and programmers turned one hundred dollars into a hundred thousand dollars, more than six-figures worth of bitcoin in the blink of an eye. He was later found to be using a’mega-trading bot’ called “Wu Wang’ which he programmed to automatically place orders for him based on the movements of the market and his analysis of sentiment – all without human intervention.
Watching The Prices (Of Bitcoin And Beyond)
The cryptocurrency market is a fantastic investment opportunity because the price is almost entirely driven by supply and demand. There is little or no regulation in place governing the industry, making it an accessible and reliable place to make money, if you know where to look. The price of cryptocurrencies will continue to rise and fall based on a combination of macroeconomic and microeconomic factors. One of the main microeconomic factors is confidence – or the lack of it. We can see this reflected in the recent rise in interest rates, which have driven down the value of the U.S. dollar and most other major world currencies. In other words, the more money people are making, the less they are spending, and vice versa. That is why the price of many goods and services, from food to travel to tech stuff, have soared in recent months.
This trend is likely to continue, with more people looking to reduce their costs and make money work for them. For instance, gold (the most popular and most-traded of the four precious metals) tends to rise when there is a surge of nationalism, uncertainty or anxiety around the world. Which is why many people have flocked to crypto, as a safe haven for their money. As The New York Times recently stated: “Many people are fleeing to crypto because of the crisis in confidence in traditional investment vehicles”.
Long-Haul Diamonds Are Back
Another way in which the cryptocurrency market differs from the stock market is in the products that are popular. Rather than focusing on the latest trends and fad goods, as stock traders do, crypto investors tend to look at the fundamentals of a given cryptocurrency. One of the most popular cryptocurrencies right now is Litecoin (LTC). Popularity in the market is largely determined by two things: firstly, the currency’s capacity to perform well in the long run; and secondly, its popularity among the general public. Most people aren’t well-versed in economics, and even those that are aren’t usually concerned with the finer details of blockchain technology. What they see is that the value of their investment is increasing, which makes them feel good and boosts their confidence. This, in turn, leads them to tell others about their good fortune, creating a self-fulfilling prophecy of growing value and more interest.
The rise of cryptocurrency shouldn’t come as a great shock to anyone familiar with the recent trends in gold, oil and other commodity prices. It is the perfect example of a market that is not only reflecting but also causing future prices to rise. It is this “cause and effect” that makes cryptocurrency such a reliable investment opportunity. If you’re looking for an investment that provides reliable returns, with the potential to increase in value, then cryptocurrency might just be the ticket. Consider the famous investor, Warren Buffett, who recently bought a massive stake in BTC, noting its price increase of more than 2,600% since the beginning of the year.
Penny Stocks And Options Just Aren’t As Fun
The stock market provides an abundance of opportunity, with many small stocks offering incredible profits, especially when you consider the amount of money that is sloshing around in the economy at the moment. The problem with most small stocks is that you aren’t likely to see a return on your investment for many years. It is widely-known that the stock market tends to go up, but only in the short-term. Eventually, its values will decline, causing you to lose most of what you’ve put in. One option that has been heavily-relied upon in recent years is the put option. Simply put, a put option gives the holder of the option the right, but not the obligation, to sell the stock or commodity at a certain price, usually below the current market price. In other words, it is a way of selling a stock or other commodity “cheap.”
The rise of cryptocurrency and the subsequent crash in the value of traditional investments has led to a rise in the popularity of putting money in “cheaper” alternatives, such as gold and silver – the two most popular choices among cryptocurrency enthusiasts. This has led to a rise in the popularity of “penny stocks,” which are usually just one or two dollars per share, making them an easy and affordable way to gain entry into the stock market. This trend is likely to continue, with many traditionalists seeking the safety of owning gold and silver, the two most popular choices among cryptocurrency enthusiasts. The bottom line is that if you’re looking for an investment that pays huge dividends, then look no further than the humble cryptocurrency. You may not need to look too far, with many investment opportunities emerging that are specific to this space.