On January 18th, 2017, I decided not to invest in Ethereum. My original plan was to put $3,500 into the digital currency. Instead, I put that money into an NYSE listed stock. That was 5-months and 8-days ago. Had I said “go” instead of “no”, that $3,500 would have grown to $62,342 as of today. It’s not exactly FU money; though better than a regular Monday.
In the Spring of 2013, the Cyprus government seized 10% of it’s citizens banked assets. Causing a panic at the ATM’s and teller’s windows. Those citizens immediately began converting their savings into Bitcoin, skyrocketing the currency’s value in the frenzy. For many people, the Cyprus incident put Bitcoin – or digital currencies in general – on their radar.
I’ve been reading for a week now. Trying identify events that could be held responsible for the past 5-months of Bitcoin and Ethereum. Other than irrational speculation and a few jabs at the new Commander in Chief, I’ve come up dry. The rally is seemingly inexplicable.
The reason I bring up Cyprus is to showcase it as discrete event with cause and effect. Like how when a Q10 states that a company surpassed revenue expectations, the stock price (most often) bumps up. As a person who leans towards understanding the world as cause and effect, it’s disorienting seeing an entire industry that’s driving returns through little more than enthusiasm.
No matter how disorienting though, what’s sobering is that my $3,500 is now worth – roughly – $3,500.