Bitcoin, the digital currency that has been making waves, has seen a remarkable surge in value. It surged more than 40% since Election Day and reached an unprecedented $100,000 on Wednesday. This has led to a significant increase in total returns, with people witnessing over 100% growth. The reason behind this surge is attributed to President-elect Donald Trump's interest and support for crypto. However, it has left many Americans wondering if it's too late to get a piece of the bitcoin.

Perspectives on Bitcoin Investment

Is It Too Late?

Mike Douglas, the President of LifePlan Financial Design, believes that while it's too late to get the full run-up, there are still opportunities. He emphasizes that making a risk investment like bitcoin is highly speculative, with days of both extreme gains and losses. "Is it too late? To get the full run up, yeah it is too late but there are still opportunities. To make a risk investment like that is very speculative and so there is going to be days when it’s really bad and days when it’s really good," said Douglas.

The Impact of the Federal Reserve

Tom Shohfi, a Professor of Finance at Wayne State University, highlights the role of the Federal Reserve. "We’re talking about a run up from the 70,000s now to over 100,000. I think it’s just been riding momentum, there have been a lot of things that have happened since the election, today for example, the chairman of the Federal Reserve came out and said bitcoin is digital gold which is a very positive comment by the Federal Reserve chair," said Shohfi. This positive comment from the Federal Reserve has further fueled the growth of bitcoin.

Mid-Michigan's Perspective

People in Mid-Michigan remain wary of cryptocurrency due to its online nature. "When people have FOMO, the fear of missing out on the biggest thing, or the old phrase pigs get fed and hogs go to slaughter, we don’t want to overly weigh towards a highly risky investment even though it’s doing well. You have to be appropriate about how you invest it," said Douglas. This shows the cautious approach of the local community towards bitcoin.

Risks and Recommendations

Experts stress the importance of not investing money that one can't afford to lose. "The downside is that it’s not like putting your money in the bank, it’s extremely volatile, the prices go up a lot, the prices go down a lot. I would say a small percentage of your portfolio would be a good thing but don’t get too aggressive otherwise you could really get hurt if we see a lot of pullback," said Shohfi. They also recommend getting informed before investing in crypto.Subscribe to our News 10 newsletter and YouTube page to receive the latest local news and weather. Looking to hire people, or grow your business through advertising? Gray Digital Media is your one-stop marketing solution. Learn more.Copyright 2024 WILX. All rights reserved.

President-elect Donald Trump made a significant announcement on Thursday via Truth Social. He revealed that venture investor and podcaster David Sacks will be joining the Trump administration in this crucial role. This appointment holds great importance as Sacks is set to guide the administration's policies for both artificial intelligence and cryptocurrency.

Significance of the Appointment

Some of the key tasks assigned to Sacks include creating a legal framework for crypto. He will also lead a presidential council of advisors on science and technology. Trump emphasized that Sacks will focus on making America the clear global leader in both these areas. Additionally, he will safeguard free speech online and steer the country away from Big Tech bias and censorship.

Reasons for the Appointment

This appointment signals that the second Trump administration is rewarding Silicon Valley figures who supported his campaign. It also indicates that the administration will push for policies that cryptocurrency entrepreneurs generally support. Sacks himself became a major Trump booster earlier this year by hosting a fundraiser at his San Francisco mansion. Tickets for the fundraiser sold for a hefty $50,000 per head, with a $300,000 tier that included perks like a photo with Trump. This was a stark change of tone for Sacks, who was previously sharply critical of Trump after the Capitol riot on Jan. 6, 2021. Soon after, he said on an episode of his All-In podcast that Trump was "clearly" responsible for the events and had "disqualified himself from being a candidate at a national level."

David Sacks' Background

David Sacks is a highly accomplished venture capitalist and entrepreneur. He sold Yammer to Microsoft for $1.2 billion in 2012. He is affiliated with the "PayPal mafia," an unofficial club of prominent technology figures and investors including Elon Musk and Peter Thiel, who worked at PayPal in the 1990s. In recent years, he has been best known for hosting the All-In podcast alongside fellow investors Chamath Palihapitiya, Jason Calacanis, and David Friedberg. Trump referred to it as the "top podcast in Tech," where he and his friends discuss economic, political, and social issues.