Let me just start off by saying that it’s always a great time to get into Bitcoin. Cryptocurrencies and blockchain technology are here to stay and the floodgates have yet to open.
Bitcoin has been hitting a lot of headlines in the recent news and has had a crazy run to say the least. Everything happening in the market right now is creating an interesting window of opportunity for investors. Just at the beginning of October, Bitcoin was hovering around $4300. Since then it has exploded to an all-time high around $7900 in early November. The coming weeks are crucial times to capitalize on good opportunities by playing your cards right. Here are my top reasons why I’m optimistic on Bitcoin and why right now is a great time to get involved:
1 - Institutional Money Soon to be Introduced to the Crypto Economy
There were recent decisions made by CME Group and The Chicago Board Options Exchange to launch bitcoin futures, two of the world’s largest options exchanges. The adoption of bitcoin by these institutions will pave the way for more institutional money and mainstream investors to get into the ecosystem. If you compare the total cryptocurrency market capitalization of $200 billion to the total stock market cap of $73 trillion, it just goes to show how much room there is to fill out. Then if you take it a step further, you’ll be blown away by its comparison to the total derivatives market which is at $544 trillion! (low end estimate)
Check out a visual comparison of those markets here: http://money.visualcapitalist.com/worlds-money-markets-one-visualization-2017/
2 - Emerging 3rd World County Adoption
There is recent news of a rapidly growing interest for digital currencies in 3rd world countries such as Zimbabwe! This country is currently still dealing with the aftermath of the hyperinflation in their currency from 2008. It led to ditching the Zimbabwean dollar and replacing it with US currency.
As the Zimbabwean economy is experiencing chaos, Bitcoin is offering the people of the country a form of ‘safe haven’ currency to store and exchange value. As of November 15th, the market value for a bitcoin in Zimbabwe is around $13,500, a premium of nearly double the market value on international exchanges around the world.
Other countries such as Venezuela who are also experiencing crazy hyperinflation are not surprisingly also going through a crypto boom. As more countries see this as a solution to bandaging their economy, I can only see how digital currencies will gain support and will increase demand in the rest of the world.
3 - Potential for Chinese Money to Come Back into The Market
China had long been the market leader for bitcoin trading before their government banned initial coin offerings and bitcoin exchanges at the beginning of September. At the beginning of 2017, it was estimated that China accounted for 80-95% of the global volume.
Currently, investing and trading cryptocurrencies are not banned by their government, only ICOs and the exchanges are banned. Although the Chinese government have banned these operations, they have yet to officially make them illegal. New exchanges such as ZB.com have been taking the risk of accepting Chinese users and operating under the radar. It’s shocking to me how nobody is talking about this and we’ll just have to see if this is the first step in reintroducing Chinese money into the ecosystem.
4 - Digital Currencies are Here to Stay
You can’t just shut bitcoin down. The point of the design is that it’s a decentralized, distributed network, built on mathematical proof. There is no central point of failure. Any more news of its possible failure will simply end up with the other Bitcoin obituaries (https://99bitcoins.com/bitcoinobituaries/).
Thank you for reading
-- Nic