Consensus hits NYC – time to buy?

Politicians have the G20, music fans have Glastonbury, crypto innovators have Consensus – and it is just around the corner!

Consensus is the annual get together of the cryptocurrency and blockchain sector in which those pushing the boundaries debate and discuss technological advances and new opportunities. Now in its fifth year, the whirl around Consensus is set to land in New York City on May 14 and bring with it the titans of tech, finance and other industries from around the globe.

Some 4,000 people were estimated to have attended last year, including rapper Snoop Dogg, who played at Ripple’s post-conference party. Tickets are still available, but they are not cheap – so how might any normal crypto enthusiast get a piece of the action?

By buying some currency, of course.

In the first three years of the event, the price of bitcoin and other cryptocurrencies rose significantly both during and in the two months after the event.

In 2017, the index tracking all cryptocurrencies apart from bitcoin rose a whopping 552% in the two months after the event, having already jumped 172% while the conference was taking place.

Your capital is at risk.

What causes this spike?

It could be the hullabaloo of publicity that whips existing investors into a frenzy and introduces a whole new range of people to cryptocurrencies.

It could be that the innovation on display stimulates such confidence in the future of cryptocurrencies that a wider group of people invest, or existing owners buy up more.

Whatever it is, the fairy dust was not adequately sprinkled last year. Rather than surge upwards, bitcoin and other cryptos tumbled as the mobs descended on Consensus.

Estimates of more than $55bn being wiped of the value of all currencies were being bandied around even as Snoop Dogg was playing his final set. And the slump continued. In the two months after the event, bitcoin fell 28%, to add to the 4% it had lost during the conference.

But 2018 was a year to forget for cryptos more generally and the downwards direction of travel may have been just enhanced by the Consensus chaos, as it had done in previous years that saw a rally.

And if that is the case, what does it signal for 2019’s conference – and a potential Consensus spike?

Since January, bitcoin has risen more than 52% from its lows at the end of a forgettable year for all cryptocurrencies, while ethereum is up more than 18%. There are no guarantees, but they are moving in the right direction.

If you can’t make it to NYC and meet up with the estimated 8,000 crypto aficionados, by buying in you can still take part in the extravaganza – and who knows, if you time the trade right, you might be sharing a jet with Snoop Dogg to the event in 2020.

Your capital is at risk.

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