Editor’s letter
Afriend of mine is IT savvy but when it comes to money let’s just say he’s capable of making bad decisions like any of us. He texted me one afternoon to say he had invested in a fraction of a Bitcoin. Over three weeks he turned $800 into $815. In his own words: “Still better than what I would have earned in a bank account but it was nerve-wracking!”
When I asked him if he was happy to risk losing $800 to get $15 he said “absolutely not” but at the same time this was money he’d been prepared to throw away. He’s since moved onto Ripple and is now $1000 ahead.
Seems like everyone but me is getting rich with crypto. I’m sure that’s how most of us may be feeling and this investment trend thrives on just that – fear of missing out!
We’ve been covering cryptocurrencies in Money on and off for some time but we believe it was due its own cover story. At the time of putting this report together, Susan Hely noted that Bitcoin had sunk 58% from its December high, Ethereum was down 39% since its January peak, Ripple had plummeted by 78% and Litecoin had collapsed by 66%.
You’d think this would be enough to put off investors but as Chris Weston, analyst at IG Markets, tells Susan: “While some are rushing for the exits, the big falls also tend to trigger more buying.”
As we send this magazine to the printers Bitcoin is sitting at $US8129, still down 58% from its high in December 2017.
Don’t get me wrong ... the sharemarket has
had its fair share of volatility with the S&P/ ASX 200 falling from 6121 on February 2 to 5820 in 10 days. In the midst of all this volatility, Ross Greenwood gives his insights into what share investors should do: don’t panic but definitely do something (page 77).
So should you jump into cryptocurrencies? What are the security risks and what are the predictions for 2018? Susan speaks to not only the experts but those who walk the talk.
Don’t forget to challenge yourself by signing up to our free 8-Week Savings Challenge. Connect with @moneymagaus on Facebook, twitter and Instagram and let us know how much you’ve been saving each week. Visit 8wksaver.com.au to register.