Bitcoin Rule #2 – There Are No Rules

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, Opinions expressed by Forbes Contributors are their own.

The Wild West of Investing (Shutterstock)

</div> </div> <p>Back in September I re-wrote my Three Rules of Bitcoin on Forbes.com (<a href=”https://www.forbes.com/sites/petertchir/2017/09/13/three-rules-of-bitcoin/#32e0b1d218e8″ target=”_self”>here</a>).</p> <p>I view these three rules as being very helpful in assessing whether Bitcoin, or any cryptocurrency is a buy or sell at any given time.&nbsp; They are cautionary in nature, but haven’t precluded me from being bullish on Bitcoin, including for most of the rally from $3,000 to $9,500.</p> <p>With Bitcoin back above $11,500, my recent concerns have been wrong, if not unfounded, but I do think it is worth re-visiting some of my rules of Bitcoin.</p> <hr /> <strong>Rule #2:&nbsp; There Are No Rules</strong> <p></p> <p>It seems silly to say there are no rules in a piece titled the 3 rules of Bitcoin, but let’s just go with it as this is important and ties into rule #1.</p> <p>On a simplistic level, there is nothing to stop anyone from attempting to manipulate their position.&nbsp; With no good way to get short Bitcoin (that I know of) the manipulation would be to force the price higher.</p> <p> </p> <p>Someone could buy Bitcoin and do everything in their power to make it go higher. &nbsp;Bitcoin may not even be a prohibited “investment” for people who normally have investment restrictions due to the nature of their jobs.&nbsp; So, for example, the financial media, while typically restricted on investments due to their position may not be uniformly prohibited from owning Bitcoin.</p>” readability=”39.879518072289″>

The Wild West of Investing (Shutterstock)

Back in September I re-wrote my Three Rules of Bitcoin on Forbes.com (here).

I view these three rules as being very helpful in assessing whether Bitcoin, or any cryptocurrency is a buy or sell at any given time.  They are cautionary in nature, but haven’t precluded me from being bullish on Bitcoin, including for most of the rally from $3,000 to $9,500.

With Bitcoin back above $11,500, my recent concerns have been wrong, if not unfounded, but I do think it is worth re-visiting some of my rules of Bitcoin.


Rule #2:  There Are No Rules

It seems silly to say there are no rules in a piece titled the 3 rules of Bitcoin, but let’s just go with it as this is important and ties into rule #1.

On a simplistic level, there is nothing to stop anyone from attempting to manipulate their position.  With no good way to get short Bitcoin (that I know of) the manipulation would be to force the price higher.

Someone could buy Bitcoin and do everything in their power to make it go higher.  Bitcoin may not even be a prohibited “investment” for people who normally have investment restrictions due to the nature of their jobs.  So, for example, the financial media, while typically restricted on investments due to their position may not be uniformly prohibited from owning Bitcoin.


Source: Forbes

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