According to CEO Peter Tasca of Laureate, ”Bitcoins are a very powerful tool for e-commerce, this virtual currency will allow consumers to purchase goods without paying the hefty fees to processors and banks.”
Beverly Hills, CA -- (SBWIRE) -- 12/27/2013 -- The value of Bitcoin (BTC), a virtual currency has been on a wild roller coaster ride since it started attracting venture firms such as Laureate BVI, SV Angel, Winklevoss, and internet heavy weight firm Andressen Horowitz.
Laureate BVI has advised their clients to purchase Bitcoins only as a highly speculative investment due to the amount of risk involved. The target price for Bitcoins in the next 12 months is $2,500.00 per coin based on the number of online retailers beginning to accept the currency and the limited supply.
On December 5th, the People’s Bank of China announced that commercial banks in the country could no longer deal in the digital currency Bitcoin. Prices of Bitcoin plummeted worldwide by as much as 50%, putting an end to arbitrage trading with the Chinese Yuan (CNY), where opportunistic investors capitalize on the value differences between BTC, USD, and Yuan.
According to Peter Tasca, CEO of Laureate BVI, the halt by the Chinese means that a huge source of liquidity and purchasing has been eliminated from Bitcoins. It is estimated by Bobby Lee, Chief Executive of BTC China, that the exchange has accounted for as much as one-third of world-wide trading volume. Tasca further states, “Although the Chinese have halted trading in Bitcoins, I believe there will be a market developed and that the value of Bitcoins will rise.”
Winklevoss Capital, headed by Cameron and Tyler Winklevoss who came up with the idea that that gave Mark Zuckerberg the inspiration of Facebook, stated that Bitcoin could achieve a market value of $400 Billion.
Reuters reported, "if you take the M2 money supply of the USA and apply it to the 21 million Bitcoins and they become accepted currency, in theory you could have a $524,000.00 coin."
Tasca states, “For sophisticated investors that understand risks of virtual currencies Bitcoin is a great trading vehicle because it is extremely volatile. For common investors it is not recommended they invest in Bitcoins without properly hedging their positions.”
According to Tasca of Laureate BVI which has returned 22% in net profits for 2013, “the value of Bitcoins could sky rocket if it became a real alternative to currency but they must be accepted by others in trade for something of value without the backing of global currencies or else Bitcoins will collapse.”
Another way to monetize virtual currencies is now through trading within cryptocurrencies. Right now there are currently 54 digital currency values listed on coinmarketcap.com. A trader will swap one currency for another scalping profits, as virtual currencies become more widely accepted this could be an alternative to trading stocks.
Tasca warns, “Bitcoins were not created as a for profit investment vehicle, Bitcoins are meant to be spent. It was intended as a way to avoid the hefty currency conversion fees of banks and credit card processors.”
About Laureate Trust
Laureate Trust provides expert portfolio management that achieves optimal results. The proven trading strategies are based on four principles: diversification, technical analysis, trend following and risk management, which combined have the potential to profit from any economic situation. This disciplined approach with our replicated trading strategies have a 10-year average of +31.6% per year. In 2012 this multiple platform strategy returned +18% net of all fees.
For more information on investing with Laureate Trust, contact Private Client Group +1-310-492-5301.
Website Url: www.laureatetrust.com
Contact info: Jacob Charts
Address: 468 North Camden Dr. Beverly Hills, CA 90210
Phone Number: 310-492-5301