Journal Entry: Andres Alejandr Freyre-03/07/2024

Journal Entry

In response to one of the prompt questions from the newsletter about investing money into Bitcoin, I believe it is wise at this moment. I have been following Bitcoin and crypto currency in general since the beginning of 2009-2010. My early knowledge of Bitcoin and the ideas behind a decentralized currency helped me make a good investment decision regarding Ethereum when their ICO (Initial Coin Offering) occurred back in 2015. Many analysts have been predicting a bull market for cryptocurrency during this year and it seems like it’s taking place. Bitcoin is now at an all-time high, and Ethereum is climbing toward its own all-time high. The mainstream adoption of bitcoin through Spot ETFs offered by the largest and most powerful money-managing companies in the world (Blackrock, Greyscale, Fidelity) seems to be driving the current market. I recently read about news of the coming decision by the SEC of whether or not to greenlight Ethereum (second largest cryptocurrency) spot ETFs. It is likely the SEC will also greenlight this. The deadline for their decision is in May and the same companies leading the foray into Bitcoin ETF’s I previously mentioned will also be the likely first companies to offer Ethereum ETF’s. Therefore, the momentum of the crypto market should last at the very least until October/November. There are also rumors of Qatar becoming more active in Crypto. As a very rich oil-producing nation, this is even more momentum. The near future is looking great for crypto, but the far future is obviously still too early to tell although it looks like mainstream adoption is occurring, which should drive demand for bitcoin far into the future. Regarding the “halving,” according to the data the previous times bitcoin had its “halving” prices went up and with another halving set to occur in April this is even more good news for bitcoin owners. Considering the fact that when bitcoin goes up other crypto goes up as well, the halving will be good news for holders of many of the top cryptocurrencies.

When it comes to whether I think people should invest or not, I think it depends on your financial situation. If you have money saved up for the purpose of investing, then the right time to invest in Bitcoin was about 6 months ago. Because things are looking good, the sooner one buys into this now the better. Unfortunately, the crypto market likes to crash. Sometimes it will stay stable for a while or sometimes it seems like it will peak and a sudden crash will follow. The idea is to get out on time. As far as putting a percentage of your assets into a specific type of asset, I think that is the only way to make your money work for you. To put it into Bitcoin or Ethereum is a great idea, but you have to be attentive enough and get to understand the market to be able to make money. Retirement accounts and other important finances should probably be used with the utmost caution and I wouldn’t invest that into crypto unless I knew exactly what I was doing.