Why would you even think about investing in bitcoin when you have missed the boat on the other growth stocks and this is running away?
What is Bitcoin anyway
This is a transactional medium using Blockchain Technology. Furthermore, it becomes a store of value because of limited supply and presents as digital Gold.
Bitcoin is just one coin among many, The others called altcoins (Alternate coins) number over 9000 and all have some relationship to the Mothership BlockChain.
Blockchain is a distributed ledger that allows seamless and low-cost transactions across the globe.
Bitcoin is the store of value or digital currency that lays over the blockchain and works without government interference.
Why does bitcoin represent value
First of all, it is a hedge against inflation as investors take up all available coins. The continued rise of bitcoins price will allow you to gain value over time.
This is opposed to Fiat currency that generally loses value over time. Countries have seen their currency ruined in very short periods leaving a nation virtually broke.
The supply of Bitcoin is getting much lower with only about one and a half million coins left to distribute and miners are fast taking these as payment for supporting the network.
Because a digital currency remains consistent across the globe and has large investment houses Hodling coins for future gain the future looks to be impressive.
Figures of up to a million dollars a coin are freely bandied around because supply will end and demand will grow.
The current hard store of currency is gold however that has gone down over the last decade.
When inflation is taken into account at about 5% a year the value has halved as a benchmark.
Why would you even think about investing in bitcoin when you see this
When we compare this to Bitcoin we see an entirely different story.
Should this rate continue over the next decade Bitcoin will be seen as the recommended benchmark for value
Add to this countries using it as local currency and people transferring funds around the world without paying high bank fees the future growth should be assured.
The altcoin explosion also contributes to the success
First of all, an altcoin is any digital product that is not Bitcoin. These are used for all sorts of purposes including shifting documents around the world at a high speed and massive transactional volumes.
There are over 9000 Altcoins on the market and many have seen explosive returns. The best known would include;
- Polka Dot
However there are other well known assets that border on pure investment and excitement
- Dodge Coins
- Shiba inu
The market is very broad so take good advice before taking any place in the channel.
Because this is a broad and open market traders can manipulate prices in many ways. One is pure fear marketing where a product is heavily talked down so the traders can enter at a lower price.
This is similar to stocks and share market but on a much larger scale. It is open to anyone.
As a holder of crypto assets I am bullish on the outlook.
The future of bitcoin and probably the top 100 Altcoins should show growth over the coming years.
The value of Bitcoin and the growth is generally followed by the other coins in a similar percentage.
That is if Bitcoin increases 30% a year ( far greater than inflation and bank interest) many others will follow with a similar percentage.
However, it also comes back to the value of the asset. This is a multiple of the current price multiplied by the available market.
Bitcoin is valued at around 2.5 trillion dollars at $61,000 each
Etherium at about $ 450 billion at $3750
Cardano is $68 Billion $2.09
Solano at $47 billion $156
Dodge coin $32 billion and it achieves nothing
therefore if Bitcoin achieves $100,000 by year-end or 40% higher then Eth should be $5250
and so on down the line.
However, some will grow faster than others.
Finally, if they do achieve anywhere near those figures they will be a great investment.
Can the market crash and burn
Yes, it could do that or at the very least a large correction may occur. BitCoin dived by over 50% just this year showing that it can happen, however, it did correct itself.
This can be classed as risk investing however the big end of town should hold it up.
Elon Musk was laughed at when he invested 1.4 billion dollars in Bitcoin early this year however he is currently sitting on a Billion dollar profit with no known intention to sell.
I would certainly recommend having a small wager on bitcoin because I think it is a platform that is changing the world.
We are starting to do things differently and Blockchain technology has been the catalyst to do this.
Document transactions will never be the same and the Banking industry faces massive change,
The world is now different.
This is not financial advice