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The First Big Test for Crypto-Currency Isn’t Going Well

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By Anton Petrus @ Shutterstock.com

In the face of their first big test since popularization, crypto-currencies are not faring well. Jemima Kelly reports of bitcoin for FT’s Alphaville (abridged):

For a brief moment there, it really did feel like the good old days. Bitcoin shot up from about $5,200 to about $5,900 just after the Fed’s announcement. This was the beginning of something special, wasn’t it?!

Alas, no. This bouncing cat, it turned out, was lifeless.

For those fleeting moments after the Fed announcement bitcoin could thrive; could be free; could resume on its slow but unstoppable trajectory toward the moon. But as soon as Asian markets opened, there was only one direction for bitcoin: groundwards.

Bitcoin has now crashed by more than 10 per cent in the last 24 hours, settling below $5,000 to trade at around $4,600 at pixel time while wider stock markets sell off. That takes its losses since mid-February to about 55 per cent. Ouch.

And as always, where bitcoin goes, other cryptos follow — often even more rapidly.

Bitcoin is an interesting concept, but it’s no gold. Bitcoin is more of an asset than a currency. And now people around the world are realizing why, when it comes to your emergency cash, it’s probably a better option to choose dollars over bitcoin.

There are valuable pieces of infrastructure built into Blockchain, bitcoin’s settlement system, but money should be a store of value.

Learn more about bitcoin here:

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com
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