19 Reasons Why The Price of Bitcoin Will Steadily Increase
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… Read on and enjoy!
- The growing demand on 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 ID and a trustworthy and functioning domestic banking system. Bitcoin which can be easily used with a mobile device could be the solution for billions of people who don’t have access to proper banking. This can cause steady upwards pressure on the price of bitcoin as its demand and usage continues to grow exponentially with this population.
- Bitcoin futures are expected to launch in 2017 by the CME. This would make Bitcoin an easily available option to the average investor. This would cause upward pressure on the price of Bitcoin.
- 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 only generated $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 future prospects in the 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. Basically coins that can be created as a ‘sidechain’ off of bitcoin’s ‘blockchain’. Imagine if the entire stock market [NYSE, NASDAQ, etc.] were traded everyday as colored coins on the blockchain. This is the future and there is no reason this could not be implemented globally. This could in theory take the price of one Bitcoin all the way 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 secure their bitcoin stash. It’s virtually impossible for centralized authorities to do the same either. However technology has already been created that can solve these problems, it’s just a matter of time.
- Bitcoin becomes easier access to purchase in ALL countries globally particularly where more banking services are needed. It is speculated that bitcoin is most needed by countries such as Egypt, Venezuela, India where it is currently difficult to get.
- If mainstream USA investment firms start to accept and recommend bitcoin as an asset class and pension / hedge funds start 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 in a linear fashion. It won’t skyrocket with volatility at any point, but will steadily increase in value as it increases 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. Steady growth of bitcoin adoption combined with virtually zero inflation [or even deflation when coins are lost] of supply will lead to serious growth in the price of bitcoin.
- 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 struggle with fiat currency, central banking and government insolvency, with an increasing number of bank failures, the people of the world are surely to continue to migrate a higher percentage of their finances over to bitcoin. Quantitative easing is apparently not going away, India is eliminating paper currency, Sweden wants to become a cashless society, Argentina is plagued by inflation, the Chinese keep playing currency wars by devaluing their Yuan, the failure of Germany’s Deutsche Bank… all these events add up to create a greater confidence in bitcoin as safe store of value.
- 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 would really require a massive widespread adoption for it to have upwards impact on the price of bitcoin.
- Most countries of the world are horrible managers of their own 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 just 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 who 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 government’s start to purchase reserves of Bitcoin, similar to how Gold used as a financial reserve of value.
- Bitcoin increases in demand for use in crowdfunding and investment funding. This is actually already happening right now In 2016. There have already been countless ICO funded startups that are using bitcoin and/or ethereum to fundraise 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 micro payment 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 in it’s ability to scale or lower the network transaction fees. 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 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. Properly implemented scaling solutions should reverse this trend though.
- 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 actually using BTC.
Hopefully you found this list as informative and eye opening as we did. Until next time… happy mining!