Wednesday, June 25, 2014
Monday, June 2, 2014
Bitcoin is a Pure Commodity and will continue to Rise, according to Venture Capital Partner Keith Gilabert
Keith Gilabert of Fina V Capital says, “Bitcoin has
several advantages over other commodity trades, primarily that Bitcoin cannot
be shorted and the speculation behind the digital currency is funded by real
buyers.”
Fina V Capital has been bullish on Bitcoin (BTC) since
November of 2013, with a target price for the digital currency soaring to $5,000.00
per coin. The President of Fina V
Capital Keith Gilabert stated, “Our target price is based on the demand we see
from hedge funds and the decentralizing of third world currencies.”
Gilabert states, “Bitcoin cannot be shorted like traditional
currencies you can trade today. I can
open an account with Forex and short any currency but I can’t do that with
Bitcoin. So when you examine the
possibility of where this currency can go in price it is much higher than other
types of trading instruments due to the digital currency does not have overhead
resistance.”
Winklevoss Capital
$11 million investment in Bitcoin is now worth over $60 million. They are now in the process of getting
regulatory approval for Winklevoss Bitcoin Trust exchange traded fund (ETF),
which is currently awaiting approval and will trade on the Nasdaq.
Another high profile investor is Michael Novogratz of
Fortress Investment Group, who stated, “the smartest guys in the room” many are
beginning to turn their attention towards bitcoin.
“Bitcoin continues to develop and currently it is still a
volatile trading instrument with risk, but I do expect the volatility to
decline as governments around the world impose restrictions,” according to
Gilabert.
Fina VC reports the current environment for Bitcoin is
positive. The digital currency survived
the implosion of Mt. Gox the third largest Bitcoin exchange which collapsed
because of a $450 million theft. This
has not deterred Venture Capital investors from pouring over $100 million in
start-ups this year alone. “These
start-ups have learned from the mistakes of Mt. Gox and are providing a safer
trading environment,” according to Gilabert
Last week Dish Network with 14 million customers joined
Overstock .com and Virgin America in accepting Bitcoin. Gil Luria an analyst with Wedbush Securities
said, “This is a mainstream company with mainstream leadership that’s decided
to embrace Bitcoin and what Bitcoin technology offers.”
Gilabert states, “because Bitcoin is a pure commodity based
on supply and demand, we expect for every $100 million invested in Bitcoin
reserves the price will increase by about 20%.
Until you have the ability to short the currency the upside is
substantial.”
Trading Risk
All trades include substantial risk of loss. You should therefore carefully consider
whether such trading is suitable for you in light of your financial
condition. In considering whether a
trade is suitable you should consult with your financial advisor or broker. Fina V Capital does not offer trading advice
on securities and should note that trading instruments mentioned are published
based on what we find of financial interest to the public. THEREFORE, NO
RESPONSIBILITY IS ASSUMED WITH RESPECT TO ANY SUCH STATEMENT, NOR WITH RESPECT
TO ANY EXPRESSION OF OPINION HEREIN CONTAINED
About Fina V Capital
Fina V Capital serves entrepreneurs by providing less
dilutive, more flexible forms of capital. We provide senior and subordinated
term loans in the $1 million to $20 million range to emerging businesses backed
by venture capital and private equity firms. Target clients range from
emerging growth companies led by dedicated entrepreneurs to late-state,
established companies seeking cash-flow for expansion. We give our clients access to our contacts of
Fortune 500 companies which will add diversity to their product lines and help
fuel growth. There are less than a dozen
consulting firms worldwide that can offer this level of service.
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