Internet historians are undoubtedly aware of popular peer-to-peer (P2P) file sharing platform BitTorrent (CCC:BTT-USD). However, they might not know as much about the BitTorrent cryptocurrency token, which was launched in 2019.
As we’ll see, BTT is among the cheapest digital assets you can buy. Consequently, it can easily fit into crypto portfolios of just about any size.
Don’t get the wrong idea. I’m certainly not recommending that anyone should load up on large quantities of BitTorrent token. It’s far too volatile for that.
That being said, it should be fine to take a small position in this tiny token — even if you’re not a file-sharing aficionado.
Analyzing the BitTorrent Price
Breaking through the one-penny barrier appears to be a major goal of the BitTorrent bulls. They succeeded in early April, but only briefly.
Of course, the story of 2021 is only halfway written and the one-cent dream may just be deferred, not dashed.
Moreover, apparently those analysts are expecting “an increase in its price each year until at least 2028.” Hence, the bulls shouldn’t give up hope just yet.
Still, I can understand why some traders might be discouraged — especially if they bought near the April 3 top, when the BitTorrent token edged above 1 cent.
The price collapse that followed was harrowing, to say the least. As of June 8, the BTT price was hovering near four-tenths of a cent.
So, is this a problem or an opportunity? If you’ve been sitting on the sidelines or are just learning about the BitTorrent token now, you may have a chance to start a position at a reduced price point.
And if you bought during the hype phase, then you might choose to hold on and wait for a recovery — which could take a while, I’ll admit.
Big Company, Questionable Reputation
Based in San Francisco, BitTorrent bills itself as “the company behind the largest decentralized P2P communications protocol for distributing data and large files over the Internet.”
Not only that, but the company boasts that its protocol is “responsible for moving a significant percentage of the world’s Internet traffic each day.”
Frankly, I’m wary of that “significant percentage” claim. However, it’s not a specific quantity, so there’s no way to prove or disprove what BitTorrent is saying here.
Still, I’m willing to believe BitTorrent’s assertion that its platform is host to more than 100 million active users each month. It’s a large and important business, no doubt about it.
But being a large company isn’t necessarily the same as being reputable.
InvestorPlace contributor Faizan Farooque concisely explains why institutional investors, central banks, hedge funds and other big-money financial individuals and entities are likely to eschew BitTorrent: “Around the early 2000s, BitTorrent became the file-sharing protocol to share content all over the world. Unfortunately, that opened the floodgates for piracy leading to a legitimate operating company becoming synonymous with opaque business practices.”
Reputation Might Not Matter
Farooque’s point is well taken. Piracy concerns might, indeed, leave a bad taste in the mouths of BitTorrent’s prospective investors.
That reason, by itself, could dissuade some traders from buying BTT. Plus, the token’s price volatility might be an additional concern.
However, in all likelihood, none of this will matter if there’s a broad-based cryptocurrency rally.
Consider what caused the BitTorrent token price to skyrocket earlier this year. As far as I can tell, it wasn’t any company-specific news.
And, it’s surely not a coincidence that the cryptocurrency universe’s most famous coins all rallied at around the same time.
All it could take, in reality, is a tweet from Elon Musk or a groundswell of support on Reddit — even if it’s not directly related to the BTT token.
As they say, a rising tide lifts all boats.
The Bottom Line
The BitTorrent token price flew high and fell hard. Still, at least this may provide a more favorable entry point for new investors.
There are risks involved, no doubt, and the company’s reputation could be called into question.
Nonetheless, there’s moon-shot potential — including breaking the one-cent barrier — as a global cryptocurrency rally would undoubtedly lift the BTT price.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.