Market Talk 
Today we see one Bitcoin over $60,000 peak range. Meanwhile the Crypto nerds are saying how "the experts" predict $100 K and even as high as $400 K in some not too far off scenarios. Now my view is - who knows? There are plenty of alternative futures that crypto could take, not all as promising. However, there is no denying that Bitcoin and Crypto has been a powerful force. But a notion that comes back is that as Bitcoin rises it takes power out of fiat currency and as a result shows weakness in Government policies.
Stock Talk
Bitcoin is rising but the " miners" have to pay up for new crypto mining asic's.
An application-specific integrated circuit (ASIC) is an integrated circuit (IC) chip customized for a particular use, rather than intended for
general-purpose use. For example, a chip designed a high-efficiency bitcoin miner is an ASIC.
The Crypto miners need to buy more and more power to keep up with the computing power needed to mine bitcoins.
For example one miner I follow recently ordered about $18 million dollars of ASICs likely from a company in China. With bitcoin at present high levels that equates to about 300 Bitcoins. That is a lot of bitcoins! That gets included into "operational costs" against future eps.. With the uncertainty involved I can't justify paying up for miners. I will say that there is a lot of hype and day-trading of the miners , but it seems like too speculative to be in a stock I follow at the moment. I am not saying that Crypto hype wont take it higher but the numbers are not adding up right now in some. To the ones that believe Bitcoin will see $100 K and higher? maybe they can wait, but in the meantime we've seen the Crypto stocks whipsaw about. Those whipsaws are painful if in too much or any at all. I will say - eps still matters in stocks.
On Wedensday CoinBase is going public with symbol COIN. This is a leader in Crypto exchanges. But the stock won't be cheap. I read that it may start at $375 a share!
Is buying a few shares like 3 shares of COIN a reasonable approach if someone wants in? The crypto nerds will likely drive it higher and take it out of reach or make it feel like it is. By the time it trades the hype will probably make it feel too late for the little people (like moi).
One notion that makes me cautious is that if bitcoin keeps surging, the government will view it as a threat to fiat currency and it is indeed. There could always be threats or real actions that tend to toss cold water on crypto levels. the younger generation does not believe it possible. However, some will point to the time the US banned owning gold Bullion in 1933 and waited until 1974 to allow ownership. The youngsters were not around then were they?
Am I saying Bitcoin will be Outlawed? I don't know, but even the threat of it could take it down. Am I saying do not buy bitcoin? NO. But be careful . As a hedge - maybe. But I would not be putting more than a reasonable percentage into crypto. In fact, with the crypto-hype going on, it makes me wonder if real Gold and silver may be a good way to hedge an uncertain future.
- and keep some Dry Powder $ ready.
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ALL in my humble opinion, scroll down and read more..This site does NOT make Buy / Sell recommendations.
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