Cryptocurrency is the future, and the future is already here. The following is a list of 19 reasons we see the price of bitcoin tripling or possibly going even higher in the coming mid to long term.
- Growing demand for bitcoin and cryptocurrency payment services by the unbanked… Take the $20 billion marijuana industry, for example. It is an industry that operates primarily on cash since that Federal Law still classifies Marijuana as an illegal drug, so banks will not work with these legal by state businesses. What if all these businesses started turning to bitcoin as their banking solution? We also have the fact that worldwide, there are over 3 billion people who are unbanked due to lack of proper I.D. and a trustworthy and functioning domestic banking system. Bitcoin can be transacted using mobile devices, making it the solution for billions of people who don’t have access to proper banking. This feature, which can benefit people all over the world, will impact the price positively over time as the demand and usage of bitcoin continue to grow exponentially with the growth of the payment network.
- Bitcoin futures trading is scheduled to launch in 2017 by the CME. This platform would make Bitcoin readily available to the average investor.
- The creation of a Bitcoin ETF would change everything. It would create a funnel for the flow of new investment money. Look at the Gold ETF in comparison which generated $9 MM purchase per day… we thought that was incredible! The less popular oil ETF generated a mere $4 MM purchases of oil per day. The entire USD / BTC market is currently averaging $10 MM per day in 2016. Industry analysts estimate that it’s only possible to purchase $1.7 of new BTC a day without raising the price. It seems kind of high to us. But if a Bitcoin ETF were to come online, it would surely create a bitcoin bubble. Learn why it would here.
- Bitcoin will be providing service to even more industries as it starts to provide Smart Contract Services. We see high prospects in work being done currently by Rootstock and Blockstream. Bitcoin will likely have Ethereum like smart contract ability by sometime in 2017. Success in the Smart Contract arena would open up usability for entirely new industries, which would significantly boost demand for bitcoin in the long run. A concept we have heard touted called ‘Colored Coins’ could revolutionize the way we interface with stock markets. Shares of Google (GOOG) could be globally trade-able ‘colored coins’ on the Bitcoin network. With this feature, new coins can be created as a ‘sidechain’ off of bitcoin’s ‘blockchain.’ Imagine if the entire stock market [NYSE, NASDAQ, etc.] were traded every day as colored coins on the blockchain. Blockchain is the future of transactions, and this would be a smart implementation to enhance global trade. In theory, this could take the price of one Bitcoin up to 1 million USD, which ironically is the same price recently predicted by a well known Chinese bitcoin miner.
- Bitcoin security continues to improve. It’s currently kind of complicated for a non-technical person to store their bitcoin stash securely. But it’s not rocket science, and much safer to store in your own personally secured wallet than on a centralized exchange. However, technology has already been created that can solve these problems, like cold storage wallets.
- Bitcoin becomes easier access to purchase in ALL countries globally, particularly where more banking services are needed. It is speculated that bitcoin has massive looming demand in countries such as Egypt, Venezuela, India, where it is currently difficult to acquire because of problems with their economies and government.
- If mainstream USA investment firms start to accept and recommend bitcoin as an asset class and pension/hedge funds begin to allocate a percentage of assets to bitcoin. There is an interesting Wall Street report, which makes sense of how this would all work for institutional and personal investors; click here to read it.
- Bitcoin merely has to continue it’s current upwards pace linearly. It won’t skyrocket with volatility at any point. Still, it will steadily increase in value as it grows in acceptance, usage, and global demand as a payment solution and store of value in alternative to fiat currency and the failing banking systems of the world.
- Widespread ownership and lower volatility will come naturally to bitcoin as the commercial and transactional applications emerge that help to drive it’s mainstream adoption at an even faster rate until it’s an everyday used solution like the mobile phone.
- As long as the world continues to go through the struggle with fiat currency, central banking, and government insolvency, with an increasing number of bank failures, the people of the world are sure to continue to migrate a higher percentage of their finances over to bitcoin. Quantitative easing as monetary policy is not going away any time soon, India has become intent on eliminating paper currency, and Sweden wants to become a cashless society, the hyperinflation of their currency plagues Argentina. The Chinese keep playing currency wars by devaluing their Yuan, the failure of Germany’s Deutsche Bank. All these events add up to create greater confidence in bitcoin as a safe store of value, that the shortcomings of government do not negatively impact.
- Bitcoin becomes the solution for remittance and cross border banking transactions. Even though the starting sample is small, this use for bitcoin is already growing exponentially year over year. This feature would require massive adoption for it to have an upwards impact on the price of bitcoin.
- Most countries of the world continue to be horrible managers of their nationally issued currency. That’s why countries like Panama and El Salvador have already given up on the whole idea and just use USD. What if even only one of the 190 countries on Earth were to designate bitcoin as legal tender or payment for all needs? To put this in perspective, consider the market capitalization of some different countries around the world. The 55th largest country is issued by New Zealand, which has a money supply of $105 billion, which is about ten times the size of bitcoin’s current market cap. China’s money supply is $20 Trillion, which is 1800 times greater than Bitcoin. Bitcoin’s market capitalization today is most closely comparable to that of Cambodia, and Ghana combined at roughly $11 billion. There is still such incredible growth left for bitcoin on the journey to becoming fully mainstream globally.
- If Bitcoin becomes the replacement solution over credit card processors Visa, Mastercard, and American Express [who charge high transaction fees], Bitcoin would be worth almost $17,000 per coin… based on the fact that the combined market of these three credit providers is about $350 billion. Bitcoin is steadily growing, but not even close to garnering similar market share to these credit-issuing giants.
- If governments start to purchase reserves of Bitcoin, this approach would be similar to how Gold used as a financial reserve of value.
- Bitcoin increases in demand for use in crowdfunding and investment funding. This dynamic is already happening right now in 2016. There have already been countless ICO funded startups that are using bitcoin or ethereum for fundraising multi-millions.
- Bitcoin is increasingly used for regulatory arbitrage. Examples of where bitcoin could grow in these areas are prediction markets, internet betting, drugs, darknet trades, etc.
- The emergence of micropayment solutions that leverage the bitcoin blockchain… There are already a few notable startups slaving over this, such as Brave Browser, Yours, 21, but the whole concept has a long way to go. Success in this area would create payment solutions for entirely new industries, which would organically boost demand for BTC.
- If bitcoin can become more flexible with scaling to lower the network transaction fees and increase it’s the rate of transactions. After the SegWit solution goes live, there will be multiple scaling solutions that become possible. These would include the lightning network, other off-chain solutions, or the option to fork to support a larger block size. At the moment, higher transaction fees and full blocks [blockchain bloat] are seriously slowing down the growth of bitcoin as an everyday payment solution. Correctly implemented scaling solutions should reverse this trend.
- The development of a new coin which leverages the bitcoin blockchain but has all the scalability built-in with improved transaction speeds. Bitcoin would become an ‘under the hood’ logistic for many apps, where the end-user may not even be aware that they are using BTC.
Hopefully, you found this list as informative and eye-opening as we did. Stay prosperous until then!
Until next time,
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