As a CNBC junkie. I turn on Squawk Box first thing and watch periodically throughout the day when I'm home. One thing they discuss not just on Squawk Box, but on all CNBC platforms is bitcoin. Bitcoin is a cryptocurrency and worldwide payment system to put it in it's simplest form. There are bitcoin mines. A small town in Washington state that has very cheap energy prices is used by bitcoin mining companies. Bitcoin is unregulated, and extremely volatile moving 30-40% either way in a single day.
What I find amusing is when the discussion is on bitcoin the difference in analysts opinion is striking. The opinions is almost always age based. When the question about bitcoin is asked to someone of the older generation they are generally bearish about it. They think it's a bubble of some kind and will eventually burst. Now when the same question is posed to millennials they're very bullish. Some are invested in bitcoin and other cryptocurrencies, and find all the positive in the space.
I won't act as if I know a lot about bitcoin and other cryptocurrency. What I do know is that criminal elements use these cryptocurrencies for illegal activities which leads me to be reluctant. It seems older investors aren't always fans of disruptors. They stay away from what I consider "change" companies. Legendary investor Warren Buffett doesn't like bitcoin, but he also didn't like amazon or Google.
Me personally I didn't think people would want to watch movies on their computers, so I wasn't a big fan of Netflix, but I loved Facebook and bought it's IPO. I just wanted to be involved. The funny thing about my love for Facebook is that I nearly never go on the platform.
The point is that bitcoin and other cryptocurrencies could be game-changers, or they could be bubbles and investors will get clobbered. My gut tells me these current cryptocurrencies like bitcoin, etherium, litecoin etc are the test probes and the cryptocurrencies that last will be come later, be regulated, and issued by governments and foreign exchanges. I'm referring to strong economic countries not what Venezuela did last week. Venezuela issued a cryptocurrency named petro backed by their oil, but that government and country are in such terrible condition how can you trust it? I'd call it corruptocurrency. Just my opinion.. I'm certainly watching close to see what happens with these because this crypto-craze is far from over.