Since Trump’s election, bitcoin and cryptocurrencies have soared. Smashing all their historical records. And around me, I am confronted with three categories of people.
1. The early believers who brag, rightly so: Gen Z, millennials but some boomers too, more rare.
2. Those who have never spoken to me about bitcoin but who tell me that they bought it more or less massively before the rise; I have doubts. In the markets, we call them “back traders”, investors who have seen everything BEFORE but who only talk about it AFTER.
3. Dinosaurs. Who saw nothing. Who watched the train go by, a train which became a TGV. But who regret nothing because they are followers of “ I only invest in what I understand “. Like me. What cheers me up is that I’m in good company: Warren Buffett, the most talented manager of the last sixty years, regularly repeats that he will never touch bitcoin; he even compared cryptocurrencies to “rat poison”…
How to invest in the best cryptocurrencies
Whatever opinion one may have on bitcoin and its cousins, we cannot ignore the performance of this financial “asset”. A spectacular performance. In a single year, it increased from $35,000 to $90,000, give or take a few thousand dollars. The total capitalization of cryptocurrencies nevertheless remains modest. It is equivalent to that of an Apple or an Nvidia. Trump plans to lift part of the regulatory constraints and integrate it into national reserves
Bitcoin, which was defined as the gold of new generations, will change its status with Donald Trump. He wants to make it a currency in its own right. And to do this, he plans to lift a large part of the regulatory constraints and integrate it into national reserves. When it was El Salvador that decided to buy bitcoin for its reserves and adopt it as its official currency, it was still anecdotal, even folkloric. Today, it is the United States…
Another dimension. And a validation, surprising but real, by the world’s leading economic and financial power. The “specialists” who dreamed of a target of $100,000 for bitcoin no longer even make forecasts. For them, the potential of this virtual currency is unlimited since its production, “mining”, is progressively limited.
Bitcoin: can we still believe in French leadership?
An essential question arises for those who do not have bitcoins in their asset allocation: should you buy them now or is it too late? I will give the same answer as for gold. Gold is a financial anxiolytic: if it reassures you to have it, then don’t hesitate to invest 2 to 3% of your assets in it. Bitcoin is a financial Viagra: if it energizes you or excites you to have it, don’t hesitate. But limit your risk. Even though Trump will give bitcoin the official title of financial asset, it remains an extremely volatile speculative asset. As for me, I will continue to ruminate, like the cow watching the trains go by.
▶️▶️▶️▶️ Every Friday on BFM Business, find Marc Fiorentino from 8 p.m. to 9 p.m.
