The recent Bitcoin price increase is attracting a lot of new capital. That is not entirely surprising, as Bitcoin remains one of the most profitable investments people can make right now. Kristoffer Hansen, a well-known Norwegian investor, has seen the light as well. He converted all of his stocks shares and used the money to buy bitcoin. It is an interesting turn of events, albeit one that will become more common moving forward.
Dumping Stocks to Buy Bitcoin Instead
It is quite interesting to see people get rid of traditional investments in favor of cryptocurrency. Even though Bitcoin and sorts are still highly unregulated, a lot of people feel this is a good thing. That is not surprising, as Bitcoin has been one of the world’s best-performing currencies for some time now. It is only normal people take advantage of these opportunities sooner rather than later. Whether or not selling stocks is the smart decision, remains to be seen.
Norwegian investor Kristoffer Hansen has made the switch earlier this week. Rather than keeping a portion of his stocks, he sold everything to buy Bitcoin. That is quite a bold move, to say the least. Then again, Hansen has been following cryptocurrencies for quite some time now, and feels now is the time to go all-in. Still, it is quite a bullish move at a time during which the Bitcoin chart can turn deep red at any given moment.
It is not the first nor the last time investors sell off stocks in favor of Bitcoin. Traditional investments yield little to no profits these days. Bitcoin, on the other hand, blows virtually everything out of the water in this regard. In fact, ti is not unlikely to think the stocks market will turn very bearish before the year 2017 is over. Should that happen, a lot of investors will liquidate non-performing assets quite quickly.
Buying large amounts of Bitcoin when the price is near an all-time high remains a risky endeavor, though. Every Bitcoin price increase is ultimately followed by a sharp decline. In the case of Bitcoin, those declines can result in price swings of US$200 and more. Then again, Bitcoin is very close to reaching US$3,000 for the very first time. It is an exciting time to invest in Bitcoin, although it remains to be seen if Kristoffer Hansen will regret his decision.
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