Kelly Robertson
We at Wallet Weekly are pretty bullish on the prospects of Bitcoin, and yes — we think it will continue to rise. So the short answer is YES!
And we have 5 reasons to share why we think Bitcoin will continue on its path of growth. Without further ado, here’s what we’ve got…
1. Bitcoin is the digital gold standard
It was the first cryptocurrency in the world and is therefore considered a digital gold standard. This in turn makes it the safest investment in the [cryptocurrency] space, especially during world’s socio-economic challenges (more on that in a minute).
So while Ethereum has been riding the wave in recent months, it is still not as worth as much as Bitcoin. Furthermore, some exchanges will only take your bitcoins for ether; in contrast, you can buy bitcoins with your credit card and PayPal, among other payments methods, on most cryptocurrency exchanges on the internet.
Also, bitcoin is by far the single most accepted cryptocurrency in the world, which makes it the reserve currency of the cryptocurrency space. It is like a U.S. dollar of this market, and when a new cryptocurrency is issued in the so called ICO (Initial Coin Offering) — which is the IPO (Initial Public Offering) for cryptocurrencies — you typically need bitcoins to buy in.
2. The age of uncertainty works to Bitcoin’s favor
We live in the age of global uncertainty which works in Bitcoin’s favor.
For instance, we’ve seen some Argentineans buying bitcoins to protect their savings against high inflation or the possibility that their government could confiscate savings accounts.
Something similar has happened during the 2012-2013 Cypriot financial crisis when bitcoin purchases in Cyprus rose due to fears that savings accounts would be confiscated or taxed.
Both situations caused the surge in bitcoin’s price, and the same happened on the news of Brexit when, obviously, the British Pound was down.
Now add terrorism to the mix and you get a vivid picture that more often than not plays to bitcoin’s favor — it, and perhaps the entire cryptocurrency market, will appreciate on pretty much any bad news.
3. Bitcoin is a limited commodity
The Bitcoin rewards miners with 12.5 bitcoins per block (approximately every ten minutes) until mid-2020. After that, miners will earn 6.25 bitcoins per block for 4 years until next halving, which will continue until 2110-40, when 21 million bitcoins will have been issued. As far as we know, there won’t be any other bitcoins issued afterwards, making Bitcoins more valuable with the day.
In comparison, many other cryptocurrencies — including Ethereum — don’t have such limitation. While that could potentially make them more useful for other things, their wide availability also makes Bitcoin more valuable (since it will have a limited supply).
4. Major corporations have started embracing Bitcoin
Bitcoin is not only for geeks, with many corporations today accepting Bitcoin payments. Some of them include Microsoft, Dell, Expedia, TigerDirect, Sacramento Kings, Newegg, Overstock.com, Time Inc, and many others. In addition, we have some of the world’s biggest banks looking to take advantage of Bitcoin and its underlying technology (blockchain).
In a 2013 report, Bank of America Merrill Lynch stated that it believes bitcoin can “become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money-transfer providers.” Then in June 2014, the first bank that converts deposits in currencies instantly to bitcoin without any fees was opened in Boston.
5. Fear of missing out
Finally, we have end users like you and me who are afraid of missing out on the entire cryptocurrency ride. Collectively we help Bitcoin appreciate in value in the long run. In the short term, speculators are ruling the day causing cryptocurrencies to go up and down, on a daily basis.
Nevertheless, the fear of missing out is a strong driving force. The cryptocurrency market is still in its early days, and many folks are looking to get into it. Whether they want to make easy money, diversify their portfolio or just play in this new market — they help Bitcoin and other cryptocurrencies advance forward.
Conclusion – Bitcoin will continue to rise
It is our firm belief that the best days are ahead of Bitcoin. It is just getting started and like any novelty — it will need some time before it gets widely accepted by vendors all around the world. Meanwhile, Bitcoin has a solid foundation and has thus far managed to keep up with speculators. Its price went up and down, but in the long run we expect it to keep growing.
You should, however, know that buying bitcoins is an investment, and as any investment — it comes with a risk. Whether you’re up to buy in is totally up to you. This article doesn’t intend to provide an investment advice, and we expressly disclaim any liability, including in respect of direct, indirect or consequential loss or damage.
For what it matters, we at Wallet Weekly talk the talk, if you know what I mean. 😉
