With the price of Bitcoin skyrocketing it makes other investment returns look dreadful and is out performing the market by a staggering rate. It is not just this year you would have made huge returns if you had bought BTC as it has consistently now been the best asset for the last three years. There are still many that question the viability of Bitcoin and think the price is a bubble but below are some of the reasons why the Bitcoin Boom may not be a bubble and I predict it will be over the $3,000 mark before the end of 2017.
1. Bitcoin Usage
When Bitcoins were first introduced into the market place they did not really have a use. They were traded between gamers and have since become an assets that can be used to buy almost anything online. It gives the consumer not the banks the advantage as they are not been robbed each time they want to send money internationally. It is also the security aspect of the digital currency that is driving usage as banks are no longer a safe place to store your life savings. Without quantitative easing they banks would fold and with new EU laws past making its customers liable to pay back the debt, everything could come crashing down in spectacular fashion as we have seen in Cyprus. If they same situation happened again it would add fuel to cryptocurrency and could be the catalyst to bring down the financial system as we know it. That is if the derivatives bubble does not bring it crashing down before.
2. Bitcoin Transparency
People are the world are getting fed up with been spun lies and the only way to stop this is by using systems that have complete transparency. The FED has never been audited which if it were to be how many huge financial scandals would it uncover? Bitcoin is based on the Blockchain which is a transparent ledger so every single transaction can be seen by all of its users. This eliminates a large percentage of fraud which is how the financial super élite make their money.
3. The Big Money Is Not Invested Yet
The large hedge funds which control a considerable chunk of the worlds financial economy have not yet invested in Bitcoin which means it is actually under priced and not over. Once one goes in the rest will follow and that will send the price skyrocketing once again.
“Bubbles occur when everyone and their sister is trading/buying into a ‘hot’ market. While a few of my global correspondents own/use the primary cryptocurrencies, and a few speculate in the pool of hundreds of lesser cryptocurrencies, I know of only one friend/relative/colleague/neighbor who owns cryptocurrency.”
Read the full article on the Bitcoin Boom and Bubble at Market Watch by clicking the link below:
Pop goes the bitcoin? While bitcoin has been on a tear, don’t call it a bubble. So says OfTwoMinds.com financial blogger Charles Hugh Smith in his latest post. Below are three key points from Smith’s take on the hot virtual currency. 1. Bitcoin has an real purpose: Cryptocurrencies are […]