By Ryan Velez
Bitcoin isn’t at its peak, but many who are familiar with the cryptocurrency suggest that this pattern of steep drops and climbs basically is part of how things work. Celebrity Net Worth reports that one investor on the online currency trading platform LedgerX put that belief where his wallet was with the purchase of 275 call options to purchase bitcoins at $50,000 sometime between now and December 28th, 2018.
What does this mean? They reportedly had a volume-weighted average price of $3,600, which brings the total investment to almost $1 million. In essence, they are betting that Bitcoin’s value will hit $50,000 at some point this year, and have put up essentially $1 million to do it.
When this initial news went out, Bitcoin was trading at almost $16,700 per bitcoin, while as of this writing it stands significantly lower, at about $14,400. Here’s how CNBC describes the bet, “An investor would lose the bet if Bitcoin doesn’t reach $50,000 in that time period, but would reap profits if it climbs well above that level.”
Nick Colas of DataTrek Research probably wouldn’t be too optimistic about the likelihood of such a climb if he was asked – according to his recent prediction about Bitcoin’s future prospects:
“Bottom line: Bitcoin can rally to $22,000 and still be reasonably priced, or plummet to $6,500 and also be correctly valued. We expect to see bitcoin trade for both prices in 2018.”
The gamble is also breaking ground for LedgerX, which is a young company less than five years old and has only been offering bitcoin trading functions since October of last year.
Part of the reason why we focus on bitcoin so much is its potential for underserved communities. Take it from one of the youngest Bitcoin millionaires in the country, Fitz Hall:
“Crypto is life. There is nothing more exciting or lucrative than crypto right now. It will be very difficult to top the returns that this sector will bring. With that being said, all of my endeavors are currently centered around crypto. We have a major platform being built that will make trading and investing easier for crypto traders and investors. This is my largest project, but I am also building a mining farm, which is more passive. Starting early 2018, I’ll be releasing a course teaching people how to build their own cryptocurrency portfolio the smart way.” He has special advice to those who grew up like him, people of color in poor, urban communities:
“I think it gives people in urban communities hope and motivation to see someone from the same background get out and make a way for themselves outside of sports or rapping. I’ve definitely bumped my head a few times, but that’s all a part of the journey. The more you fail, the more you value the success. I would hope that they see a piece of themselves in me and believe that they are not limited by their circumstances.”