When we spoke on Dec. 19, I warned you to be careful about getting into Bitcoin as we head into 2018.
No, I'm not pessimistic about cryptocurrencies in general or Bitcoin in particular. In fact, just the opposite is true – I firmly believe these e-currencies are the wave of the future and still face huge upside.
My concern is for individual investors like you. At the time, Bitcoin had literally just hit the futures markets for the first time ever. And Wall Street traders, hedge funds, and other high rollers were sharpening their knives – setting Bitcoin up for massive volatility.
My call couldn't have been timelier.
Practically as I hit "send" on that report, Bitcoin fell $1,070 in a day. Not only that, but it weakened over the next few days, falling from a high of roughly $20,000 to $12,500. That's a 37.5% peak-to-trough loss.
Today, Bitcoin has swung back up to around $15,300.
For you Bitcoin veterans out there, that kind of swing is pretty normal. You folks can handle it. But for new investors, that type of volatility is hard to swallow.
So what I want to tell you today may sound a bit counterintuitive, but here we go…
Please don't cash out of Bitcoin completely.
If you do that, you'll miss out on the hard forks.
If you set yourself up correctly, these Bitcoin spin-offs could mean gains of several hundred percent.
Here's how to do that…
Why Bitcoin Was the Investment of 2017
In the past year, the price of Bitcoin has hit peak gains of some 1,900%.
Some of that can be chalked up to the crypto craze we've been seeing, no doubt. I don't know about you, but nearly every conversation I had at Christmas parties this year revolved around Bitcoin.
But what all those folks are buying – what they're hanging their hopes on – is good, old high technology. As we all know, the road to wealth is paved by tech.
See, the technology underlying Bitcoin and other cryptocurrencies – known as blockchain – adds new dimensions to data that layers in both time logging and other ledger characteristics that create layers of security by design.
California's Weed Legalization Is Just the Start… Marijuana stocks are seeing triple-digit gains, and the next wave of wealth is coming. Learn how you could turn a small $100 stake into a fortune. Read more…
That's what has Silicon Valley, Wall Street, and just about everyone else so excited about getting into a field that almost no one had heard of when I first started telling folks about it way back in early 2013.
Blockchain is a highly secure, cryptographic system that functions as a global distributed ledger. This system not only undergirds Bitcoin and other currencies, it also bypasses banks and governments, operates transparently, and is virtually hack-proof.
That means, almost immediately, many of us will be settling contracts with blockchain. By doing so, we'll avoid bank fees, possible litigation, and all lot of other issues that economists like to refer as "friction." Plus, you can go online and watch these transactions occurring in near real time.
Plus – and here's where it gets good – blockchain technology is the source of those hard forks… if you own some Bitcoin.
Here's what I mean…
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.