Skip to content
sixteen-year-old-shares-thoughts-on-crypto

In My Own Words: A 16-Year-Old Shares His Thoughts on the Crypto Space

As a 16-year-old high school student born in 2002, I believe I have witnessed one of the most concentrated times of technological change in the history of our society. From watching movies on VHS, to witnessing self-driving cars become a norm in today’s society, I believe that when it comes to technical innovation, anything is possible. I think that this applies to cryptocurrency as well. In my opinion, cryptocurrency will play a large role in our future based on what I have seen in the news, on the internet, and most importantly, at my school.

My Bitcoin Story

When I initially heard about Bitcoin, around May of 2016, one Bitcoin was worth around $450. I was 14 years old, and the concept seemed ridiculous to me. At the time I believed there was no way that anything besides the dollar bill would be used to purchase real things in the United States. I mean how does something that isn’t even tangible hold value; and so much of it at that? Skeptical and confused about Bitcoin, I was convinced that mainstream, tangible currencies would be the only acceptable currencies in the long term.

But, with school starting and my mind thinking of hundreds of other things, I rarely thought of Bitcoin and only talked about it with a few of my peers who had invested in it early on. But a few months later, everything changed.

Halfway through my freshman year of high school in January 2017, Bitcoin passed the $1,000 mark for the first time on the first day of the year. That’s when I decided to take out my savings to purchase one full Bitcoin. I was initially worried about my decision but as time passed my investment remained steady, slowly but surely rising in value. Then, in September 2017, Bitcoin inexplicably took off.

School was starting up again, and, as I started 10th grade, I noticed that cryptocurrency had become a hot topic, as students from every grade discussed and debated which cryptocurrency was the most reliable. Cryptocurrency-themed clubs started up on my campus and more and more students, parents, as well as faculty, began pouring their funds into digital currencies.

In fact, crypto became so popular that by early November 2017, I’m pretty sure there wasn’t a single person in the school who didn’t know what cryptocurrency was. People knew I had experience in crypto and began to come to me for advice and knowledge about the subject, and I inserted myself into as many conversations about the subject as possible when I had the chance.

Happy with my earnings, in November I cashed out. The price was slightly over $9,000 and I had earned enough to pay back what I had borrowed and put savings in the bank in case I ever needed it. But the price just kept climbing, and my classmates and I all watched as it broke $10,000, and then $11,000, and so on. We all felt as if it was a bubble waiting to burst but it just kept miracuously climbing.

Websites such as Youtube and Instagram were full of jokes, statistics, and ads about cryptocurrency. People exclaimed with excitement about how much they had made. In fact, one of the teachers at my school quit after he sold all of his cryptocurrency, mainly Bitcoin, close to the peak of its value. He had been investing for months, so his return was incredibly high and the profit he made from investing in Bitcoin was enough so he could comfortably let go of his work and explore the world. It was at that moment that I realized that Bitcoin, something that I couldn’t even touch, had so much value. It made me believe that digital currencies had the potential to change the future for many people.

Bitcoin reached its record high in December of 2017, but then proceeded to drop. At school the conversation about cryptocurrency suddenly seemed to sport some sort of negative connotation as it turned into more of a joke. Some stayed strong and maintained their investments in alternative currencies while others bought out and vowed to never buy back in. This continued until months later, when the talk died out and only investors who had bought in early really cared.

To this day, some of my peers remain optimistic and believe that cryptocurrency has not had its last hoorah, while others think it was just a popular fad to be left in the past. Personally I believe cryptocurrency is limitless, and the odds of it rising again are much higher than the odds of it falling again. Within days of me writing this article Bitcoin had a 10% increase and whether it will rapidly skyrocket like the first time or steadily increase over time and integrate itself in society, I believe that cryptocurrency will inevitably disrupt our financial systems and revolutionize our definition of money itself.

bitcoin-etfs-are-on-the-way

Bitcoin ETFs Are Coming And Could Bring A Flood Of New Money (Updated)

(UPDATED 7/26): Today the SEC has rejected an ETF request from the Winklevoss and their Bats BZX Exchange (Gemini Trust). Other proposals are still pending with the SEC including one from the CBOE / SolidX and another from Direxion. The SEC recently postponed a decision on the later until September citing it needed “sufficient time to consider this proposed rule change.”


What is an ETF?

An ETF, or an exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets. It is also a means of portfolio diversification and a hedge against risk.

With a Bitcoin ETF, investors won’t be holding actual crypto, but rather a fund that buys crypto, so it has the potential to attract a large number of additional investors to the space.

The price of gold increased following the ETF launch in 2003. And now, with a Bitcoin ETF rumored on the horizon, there is speculation that a similar trend will follow suit.

Source: Reddit | Disclaimer: Image is 30 years for gold and 1 year for crypto. For illustrative purposes only.

In late June, the CBOE filed an application with the SEC to open the world’s first Bitcoin Exchange Traded Fund (ETF). According to the proposal, the Bitcoin ETF will be backed by secure holdings of Bitcoin in the VanEck SolidX Bitcoin Trust. The Trust will trade Bitcoin on over-the-counter exchanges both domestically and internationally to maintain liquidity and sufficient reserves, as well as offer a comprehensive insurance plan.

While the SEC is not scheduled to make a decision until August 10, there are several key happenings that indicate the application will likely be accepted. Let’s take a closer look.

The SEC Has Already Said Bitcoin is Not a Security

SEC Director of Corporate Finance William Hinman has already stated this year that both Bitcoin and Ether are currencies, not securities. This means that most federal securities laws will not apply to the two most popular cryptocurrencies out there.

“As with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in ether would seem to add little value.” Hinman said in June at the Yahoo All Market Summit in San Francisco.

Bitcoin and Ether will therefore not be held to the same stringent regulations as publicly traded stocks by the SEC, which will likely simplify and streamline the application review process.  

This decision, combined with the SEC’s decision in late June to propose easing its rules for low-risk ETFs, indicate that Bitcoin ETFs will likely be a crucial addition to the crypto landscape very soon.

Mainstream Financial Institutions Are Getting Involved

David Solomon begins his role as the new CEO of Goldman Sachs in October, and he has already told Bloomberg that they are “clearing some futures around Bitcoin“, and that Goldman Sachs must “evolve it business and adapt to the environment” in relation to cryptocurrencies.

JPMorgan Chase appears equally enthusiastic about the future of cryptocurrencies. While CEO Jamie Dimon had at one point called Bitcoin a fraud, the bank now calls it “the holy grail for owners and investors” and that a Bitcoin ETF “could have a transformational impact on the cryptocurrency.”

“A futures contract is the next logical step in the maturation of the bitcoin market,” Gemini co-founder Cameron Winklevoss said. And given the recent rise in involvement amongst Wall Street institutions, seems that the launch of a Bitcoin ETF will soon be inevitable.

Bitcoin Prices are Spiking

Bitcoin recently hit a two-month high, and many are predicting that the price will reach $10,000 pending the SEC’s approval of the Bitcoin ETf application.

But the imminent decision by the SEC is not the only cause of the recent rise in Bitcoin. Earlier this month, BlackRock, the world’s biggest asset management company, announced that it too would be investing in bitcoin. That caused a huge boom as it shows once again that the mainstream financial industry is finally not only taking cryptocurrency seriously but is expecting big payoffs from it themselves.

The senior market analyst at eToro, a leading trading platform with over 250 million trades, tweeted this morning:

With the combination of the SEC’s recent initiatives, as well as the influx of crypto enthusiasm from mainstream financial institutions, it seems very likely that Bitcoin ETFs will hit the marketplace soon. Stay tuned for the decision on August 10!

Must Read: Four Reasons Why the Bitcoin Bullrun May Be About to Start

Post Tax-Day, Bitcoin prices have been on the rise, but considering the massive slump in the first quarter of 2018, many are left wondering if this boom will last. While nobody has a crystal ball that can predict the future, many experts believe that a major rebound is just around the bend.

Thomas Lee, managing partner at the popular financial firm Fundstrat Global Advisors, predicts a record peak for Bitcoin by July. While Lee’s prediction is based on data from Bitcoin’s 22 corrections since 2010, here are some additional reasons why many believe that Bitcoin’s price will continue to rise.

Bitcoin Futures and ETFs

In December 2017, CME and CBOE launched the first Bitcoin futures contracts, enabling consumers to get exposure to Bitcoin price movements without holding any actual Bitcoin. The rollout of these futures exchanges put Bitcoin well onto the mainstream map, and there is speculation that the SEC will soon approve Bitcoin ETFs, as well. According to the SEC, “the agency has started the process to approve or disapprove a change in its rules that allows two Bitcoin ETFs to be listed on the NYSE Arca Exchange.”  SEC approval for a Bitcoin ETF exchange will likely further cement Bitcoin’s mainstream presence and, in doing so, have a positive impact on the digital currency’s price. 

SEC Regulation

In early March, the U.S. Securities and Exchange Commission (SEC) announced that all cryptocurrency platforms that meet the definition of a “security” must register with the SEC as a national securities exchange. The increase in regulation likely contributed to Bitcoin’s price dip immediately afterwards. However, in the long term, I believe this regulation will protect against scammy ICOs and hacks.

Furthermore, I believe that this regulation is further proof of Bitcoin’s influence at the mainstream level. When an industry scales and grows as fast as crypto, increased regulation is inevitable. We should stop looking at regulation as a barrier to the crypto space, and instead learn to work alongside it to make the industry more compliant, transparent, and reliable than before.

Increased Retailer Acceptance

Bitcoin is currently accepted at several major retailers, including Overstock.com, Expedia, Microsoft, and about another 100 stores with more growing very quickly. Amazon has also secured some cryptocurrency domains, and Starbucks CEO Howard Schultz has expressed his interest in using cryptocurrency for large-scale retail adoption.

“I personally believe that there is going to be one or a few legitimate trusted digital currencies off of the blockchain technology. And that legitimacy and trust in terms of its consumer application will have to be legitimized by a brand and a brick and mortar environment, where the consumer has trust and confidence in the company that is providing the transaction.” Schultz said. With Starbucks going increasingly digital with a wildly successful mobile app, adding cryptocurrency seems like a natural next step.

In the bigger picture, I believe that acceptance by more retailers will increase the number of transactions, wallets created, and overall Bitcoin holdings as more consumers use Bitcoin to pay for goods and services, and that all of this increased activity will continue to boost the crypto economy and lead to a rise in prices.

Lightning Network

On March 15, Lightning Labs launched a beta version of its Lightning Network (LND) software specifically available for the developer community. Designed to tackle some of the limitations surrounding the legacy bitcoin blockchain’s slow transaction times and high processing fees, LND is an “off-chain” solution that uses smart contract functionality to process transactions more quickly and cost-effectively than ever before.

Co-founder of Lightning Labs Elizabeth Stark said that the goal of the Lightning Network is to process “many thousands of transactions per second and maybe someday even millions of transactions per second,” surpassing the capabilities of traditional credit card companies like Visa.

With this kind of technical innovation in the works, I predict that Bitcoin will soon achieve greater enterprise adoption and prices will soar. But it may take a little bit of time. As with this kind of technical innovation in the works, Bitcoin prices are projected to soar. But it may take a little bit of time. As Stark said herself: “Bitcoin is a marathon, not a sprint. People wanted it to be a sprint.”

With so much momentum surrounding Bitcoin and other digital currencies, it seems that Bitcoin prices are on a trajectory to  increase. To learn more about diversifying your retirement account with Bitcoin and five other cryptocurrencies, give one of our IRA specialists a call today at 877-936-7175.

 

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

3 Reasons Why Bitcoin Always Bounces Back

Increased regulation in China and Korea has contributed to the recent dip in cryptocurrency prices, but as Chief Executive Officer of Bitbull Capital Joe DiPasquale demonstrated in his recent blog post The Perennial Dip, cryptocurrencies have dipped many times in the past before bouncing back again. If the cyclical data alone does not reassure you, here are three additional reasons that support why cryptocurrencies will inevitably rebound.

Blockchain Technology is Evolving Faster than Ever

The blockchain, or the highly secure technology which records and verifies transactions on a public, decentralized ledger, has gone through multiple iterations (or generations), cementing its utility, versatility, and value in widespread business application.

While the first generation of blockchain technology focused primarily on verifying Bitcoin transactions, the second-generation iteration has larger ambitions, aiming to transform the way we do business. Ethereum, commonly referred to as “Blockchain 2.0,” is a decentralized platform that runs smart contracts, executing applications as programmed without the risk of downtime, censorship, fraud, and third-party interference. Smart contracts act as the building blocks for decentralized applications, or applications that run on a peer-to-peer network rather than a centralized server, subsequently boosting data security and community.

Now we are already on to the third generation of blockchain technology, which aims to solve some of the problems that have cropped up over the first two iterations surrounding scalability, interoperability, and sustainability.

One initiative that is specifically focused on addressing these issues is the Cardano project. By providing a proof of stake algorithm that uses less computational power than Bitcoin’s blockchain, developing an interoperability strategy to facilitate communication between cryptocurrencies and other blockchains, and implementing a decentralized treasury that allows users of the network to submit improvement ballots in regards to infrastructure and development, Cardano is developing a more sophisticated blockchain than ever before.

As Jeff Schumacher, co-founder and CEO of management consulting firm BCG Digital Ventures said, “Blockchain technology will remain one of the most disruptive technologies we have seen since the internet and third-generation protocols remain the biggest trend we see for 2018.”

A Consistent Antidote to Inflation

Inflation unfortunately is on the rise in many parts of the world. In 2016, Venezuela and Sudan exhibited inflation rates of  475 percent and 476 percent, respectively. “Bitcoin is an effective tool to mitigate the risk of inflation, simply because production will never exceed more than 21 million bitcoins. This quantity will be reached by the year 2140 when the last bitcoin is generated,” Julio Gil-Pulgar writes in his article, “Many are Mulling Over the Idea of Retiring on Bitcoin.”

As cryptocurrencies go mainstream, wealthy investors around the world are intrigued and taking a closer look. But bitcoins are hardly reserved just for the wealthy. In fact, people in many countries are using cryptocurrencies for such day-to-day actions as buying food, sending money to relatives, and purchasing plane tickets.“There are countries today without potable water where everyone has a cell phone,” said Jorge Farias, the chief executive officer of Panama-based digital currency exchange Cryptobuyer. “Anyone who has a smartphone can have a bitcoin account, which is something that couldn’t happen before. So its niche really is the whole world.”

Indeed, bitcoin, removed from the stock market and government regulation, has already proved, and will continue to prove its importance as a reputable alternative currency for countries that face hyperinflation.

Mainstream Adoption

The cryptocurrency space is only continuing to generate greater mainstream adoption in both the finance and technology sectors. This is due to a variety of factors. First, there is the emergence of bitcoin in futures markets. The CME and Cboe global markets have already launched Bitcoin futures, while a Nasdaq bitcoin futures launch is scheduled for 2018.

In addition, regulated exchanges such as LedgerX providing oversight, reducing risk, and drawing a wider group of investors to the space.

Simultaneously, major financial institutions seem to be warming up to Bitcoin. Goldman Sachs is planning to launch a trading desk for digital currencies by June 2018. And JP Morgan CEO and notorious bitcoin critic Jamie Dimon recently admitted that he regretted calling Bitcoin a fraud.

And over in the fintech space at Square, bitcoin payments became available on the cash app in November 2017. Last December, the company announced that they would be expanding the offerings to more of its active users. “We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we are excited to learn more here,” a Square spokesperson said.

If in doubt about the future of digital currencies, look at the data: Bitcoin’s price has always increased substantially after dips greater than 20 percent. Bitcoin’s evolving blockchain technology, hedge against inflation, and mainstream adoption are just a few of the reasons why, despite current market fluctuation, we should remain optimistic about its future.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

Ethereum Hits $1,000. Will it Pass Bitcoin?

On January 4, 2018,  Ethereum passed the $1,000 mark, according to CoinDesk.

The value of the digital currency increased over 10,000% in 2017 and many investors believe that it will be the next Bitcoin. Here’s why.

Groundbreaking Technology

One of the primary distinctions between Bitcoin and Ethereum is that Bitcoin is purely a cryptocurrency, while Ethereum is a ledger technology that companies are using for business initiatives. Ethereum’s blockchain technology is far more advanced than Bitcoin’s, as it is built upon smart contracts. Smart contracts are a computer program that directly control the transfer of digital currencies and assets between parties when certain conditions are met. Smart contracts can be viewed as the building blocks for decentralized applications, where users and providers can interact directly without a designated middleman.

Ethereum is a decentralized platform that runs applications as they are programmed without the risks of downtime, censorship, fraud, or third-party interference. Given that data security and privacy is of paramount concern for enterprises across industries, Ethereum’s technology will be increasingly essential in transforming the way that businesses run today.

A Strong Community

Enterprises, startups, academics, technology vendors and Ethereum subject experts have formed an Enterprise Ethereum Alliance which is dedicated to learning about and building upon Ethereum’s groundbreaking technology in order to solve complex business problems.

Many companies across a variety of industries are developing decentralized applications that are built on Ethereum. Ranging from enriching the web, building virtual worlds, and navigating identity theft, the utility of Ethereum’s technology transcends industries and will only continue to grow with time, boosting interest and mainstream adoption.

Ethereum Futures and ETFs Coming Soon?

Ethereum Futures are predicted to launch in the very near future, bringing the third-largest cryptocurrency to the attention of larger institutional markets. The launch of Bitcoin Futures in the CBOE and CME exchanges has increased mainstream adoption of the largest digital currency, and the launch of Ethereum Futures is predicted to do the same for Ethereum.

Ethereum As A Long-Term Investment

If you’re planning ahead for retirement and looking to diversify your investment portfolio, now is the time to invest in Ethereum, a stable currency poised for a massive upward trajectory. Bitcoin IRA can walk you through the process, from setting up an account, rolling over funds from your existing IRA, making the exchange, and setting up funds in your BitGo cold storage wallet. Get started today.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

bitcoin-reaches-10k-nov-28

Bitcoin Surpassed the $10,000 Mark on November 28

Bitcoin officially surpassed the $10,000 mark on November 28, up more than 800 percent since the beginning of this year alone. The cryptocurrency is poised to soar even higher in 2018, given the growth of worldwide and corporate adoption, increased accessibility and the exploding popularity of blockchain technology. With Wall Street titan Michael Novogratz predicting that Bitcoin could easily be valued at $40,000 by the end of 2018, now may be the prime time to invest in the digital currency.  But before we discuss Bitcoin’s future trajectory, let’s review how it got to where it is today.

2008: A Trusted Currency is Born

Like many great innovations, Bitcoin was born in response to a crisis. Back in 2008, financial institutions recklessly bundled and sold subprime loans. This resulted in a massive economic recession and a global distrust in third-party organizations. It was time for an alternative option, which arrived in the unexpected form of a white paper.

In 2008, Satoshi Nakamoto, the anonymous person or group of people behind the concept of Bitcoin, wrote a nine-page white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. The paper articulated the need for “an electronic payment system based on cryptographic proof instead of trust.” As the financial crisis demonstrated, a banker’s word could often be intangible and misleading. Incorporating cryptographic technology into financial transactions would eliminate the need for third-party verification and make it impractical to commit fraud.

The world listened, and 2009 marked the release of the first Bitcoins.

2010-2016: A Force of Innovation

Over the last seven years, Bitcoin has gained traction as a new asset class that meets the bar for investability. In their white paper Bitcoin: Ringing the Bell for a New Asset Class, Blockchain Product Lead at Ark Invest Chris Burniske and Coinbase Vice President and General Manager Adam White compare basis of value, governance, use cases, and price independence of Bitcoin relative to other forms of currency. Some major findings?

  • Relative to other major asset classes, Bitcoin has consistently stayed within boundaries identifying it as a differentiated risk reducer.
  • Bitcoin has provided investors with stellar absolute returns, above and beyond that of any other asset class.
  • The decline in Bitcoin’s volatility has been caused by a number of factors including greater regulatory clarity and increasingly reliable price discovery data.

However, Burniske and White’s research, which runs through the end of 2016, doesn’t take into account the events that boosted Bitcoin’s prominence in 2017. Let’s take a closer look at a few major events that happened this year.

2017: Rapid Ascension

  • April 2017 – Bitcoin become a method of payment in Japan. Now over 260,000 establishments and retail location stores are accepting cryptocurrency.
  • November 2017 – Square tests cryptocurrency in their Cash app, allowing a small amount of users to buy and sell bitcoin directly on the app.
  • November 2017 – The entire cryptocurrency market capitalization surpasses $300 billion for the first time in history as of November 27, 2017

2018 and Beyond: Bitcoin and Blockchain Continue to Soar

In short, Bitcoin, and the powerful blockchain technology that powers it, will not be slowing down anytime soon.

Bitcoin is not only leading the charge in cryptocurrency, but also in data security. The blockchain technology that powers Bitcoin is gaining traction in a variety of industries that are looking to track sensitive data with encrypted technology. 

The signs are all there: it’s time to capitalize on the momentum and invest in your future. A good place to start? Your retirement account.

Bitcoin IRA: Investing in Your Future

Investing in retirement funds is an issue of paramount concern but also tremendous opportunity. What if you could invest in Bitcoin to retire earlier, and richer?

Bitcoin IRA is a full-service company dedicated to making this into a reality. After filling out an IRA application, we will walk you through the process of transferring your existing IRA or 401k funds into your new Bitcoin IRA. After your funds arrive, we work with you to perform a live trade and buy your Bitcoins, which will then be stored securely in our exclusive digital wallet.

Interested in getting started? Give us a call today to take advantage of one of the biggest investment opportunities of 2017.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

[Infographic] Bitcoin’s Volatile Path to Greatness

Bitcoin is already shrugging off the price dip caused by China’s ban on all exchanges and ICO’s. It did not take long for Bitcoin’s price to rebound; the end of the month saw the digital currency reach $4,000 once again. Despite all detractors crying “bubble” and “fraud” Bitcoin continues to grow in price and global adoption. To early adopters and veteran investors, the pattern of dip and recovery is a familiar one and hardly warrants the sensational headlines. They know that Bitcoin is on a path to greatness and the volatile price is merely part of the journey.

“Nobody can stop [Bitcoin] because nobody can control it. The idea that the government can put curbs on this is actually pretty specious.” – Venture capitalist and Facebook millionaire Chamath Palihapitiya

In fact, Bitcoin not only recovers from price dips, but it does so at an incredible rate. Since the September 22 price drop, the price rebounded up to $3,500 and then up to $4,430 in the span of two weeks. The market cap of bitcoin has increased from $59 billion to $73 billion, as its daily trading volume surpassed the $1.2 billion mark once again.  Every sell off of Bitcoin has created an even greater recovery.

Take a look at our latest graphic illustrating how Bitcoin recovers from every fear-based sell-off and continues to grow.

Every price dip is a chance to invest and maximize gains. Ready to get started?

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

China’s Crackdown: Why Bitcoin Will Continue to Thrive

September 15, 2017, the Chinese government officially issued a ban on all Bitcoin exchanges and trading platforms. The ban did not come as a surprise, rumors had been circulating for some time, but the ruling still triggered a mass exodus of investors. When rumor became reality a nervous market began selling off, sending the price of Bitcoin into a slide. The talk in the crypto-community immediately turned to whether Bitcoin was a bubble and this was the beginning of the end for the digital currency.

However, experience investors know that the price dip and setback with China are mere bumps in the road and Bitcoin’s path to growth will continue. As a proof point, by press time the price of Bitcoin had already recovered from $3,000 up to $4,011.

Here are just a few reasons and arguments from the experts as to why Bitcoin and digital currencies will be unaffected by the China exchange and ICO ruling.

Facebook and Google are Banned from China and Still Thriving

If there’s a precedent to be set about China’s ability to stifle innovation, one only need to look to companies like Facebook and Google. Both platforms can easily be characterized as giants worldwide with billions in earnings and mass adoption. What’s more, both platforms have also been banned in China.

There’s no doubt that China is a huge market, but Google and Facebook have thrived despite having no presence there.  

Stelian Balta, Founder and Managing Partner of HyperChain Capital had this to say: “Digital assets can be considered commodities trading on supply and demand. There is fixed supply and increasing demand. China is an important market and the recent news of exchanges shutting down and ICO funding being banned certainly has a short term negative effect on the prices. However, digital assets are a global phenomenon. Huge Internet businesses like Facebook or Google are banned in China and are doing pretty well.”

In fact, China only accounted for 6.4 percent of global Bitcoin trades. The world of cryptocurrency is still growing and has a long way to go before it overtakes traditional currency. In short, there’s plenty of opportunity left in the digital currency marketspace.

Trading Volume has Moved to Japan

Once China left the digital currency market, other countries were ready and waiting to take up the slack. Case-in-point, according to CryptoCompare, Japan became the leader in volume by currency with 50.75 percent market share of the global Bitcoin exchange market in the days after the ban. The three largest exchanges, BTCC, Huobi and OKCoin immediately moved to Japan after the ban, boosting it to the number one position. Time will tell how Japan continues to fair against the usual leaders of Korea, Europe, Great Britain, and the United States, but China’s ruling has opened up opportunity.

Some experts are even arguing that the China ban could be beneficial to the rest of the market. Litecoin creator Charlie Lee, said, “This is a good thing. China can no longer play with the markets by banning Bitcoin. Cryptocurrency cannot be killed by any country. One solution to centralized exchanges is decentralized ones.”

Bitcoin’s rebound in price post China ruling serves as proof of Lee’s statement that no single country determines the fate of digital currency. The heart of Bitcoin and other coins is decentralization. They are the people’s currency and governments will never truly be able to stomp them out.

Bitcoin Always Recovers

Tom Lee, the former JP Morgan Chief Equity Strategist and current Head of Research for Fundstrat, made an appearance on CNBC’s Fast Money about Bitcoin is still a strong investment and store of value. “I unequivocally believe bitcoin is your best investment to the end of the year.” Lee went on to say that he believes Bitcoin will be worth $25,000 in five years.

Bitcoin investors are used to these types of swings in price because one thing remains true: Bitcoin always recovers.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

Why Bitcoin is Not a Bubble

Bitcoin has seen incredible growth in 2017, rising nearly 400 percent over the course of the year. The digital currency also reached an all-time high value of over $5,000 at its peak. This meteoric rise had many critics crying, “bubble” while other experts predicted it to be only the beginning. This month, speculation about China shutting down Bitcoin exchanges brought about hysterical sell-offs and the price dropped below $4,000.

Further shaking the nerves of investors, JP Morgan executive, Jamie Dimon called Bitcoin a “fraud” that is “worse than tulip bulbs.”

Antiquated references aside, Dimon and critics are missing the central purpose of Bitcoin that makes it an investment that’s not going away. Here are the top reasons why Bitcoin is not in a bubble and a price drop equals a prime time to buy in.

The Real Bubble May be Traditional Banking

The average person holding money in a traditional savings account will never earn enough in interest to keep pace with inflation. While account holders are enjoying nominal returns, Centralized Banks charge much higher interest for loans and credit cards. It’s near impossible to live in today’s world without debt like a car loan or mortgage. The average interest rate on a savings account hovers just above one percent, while the interest on a credit card can soar above 20 percent. The math just doesn’t add up for account holders. Gain one percent to lose 20 percent. Traditional savings accounts have no real store of value for investors.

Those declaring that Bitcoin is in a bubble would do well to note that stocks, bonds, and real estate are all in a bubble. What’s more, so is the U.S. dollar. The value of these items is manipulated by central banks and investment firms. The 2008 subprime housing market bubble acts as the towering example of how traditional markets can experience devastating crashes.

The math of the dollar debt for investors continues to work against the favor of the average investor.

And Bitcoin is the Better Long-Term Store of Value

By design, Bitcoin was made to be a better store of value for both long-term investors and those using it for payment. Traditional fiat currency has no cap to the amount of bills and coins that can be created. In Venezuela, unchecked printing of money lead to inflation rates that rendered the local currency to be all but worthless. The United States and other countries around the world may be battling inflation at a lower and slower rate, but the problems remain with no solution in sight.

In contrast, Bitcoin has a cap of 21 million coins. There will never be any more created. Currently, there are just over 16 million Bitcoins in existence and it is estimated that the last Bitcoin will be mined in the year 2040. The limited supply means that Bitcoin’s inflation rate will remain minimal until the last coin is mined. When that day comes, inflation will cease altogether.

Blockchain Technology is Growing in Adoption

The aforementioned 2008 financial crisis is the reason Bitcoin exists – Satoshi Nakamoto saw a better way of handling currency; one free of the manipulation and corruption of the traditional market. Bitcoin is a better store of value because it is decentralized from such agencies. Blockchain technology provides transparency unparalleled by any other currency. The blockchain ledger is open source and every transaction is visible to the world. There’s nowhere to hide in such an open form and that protects Bitcoin from corruption.

The value of Blockchain technology has not gone unnoticed by innovators and investors. Not long after Bitcoin first launched, new cryptocurrencies took the concept of Blockchain and sought to improve it and expand the use case scenarios. Ethereum added smart contracts; Ripple created an open exchange network that worked with financial institutions; and the list goes on. As Ripple has shown, even traditional banks have not been able to ignore the implications of the Blockchain. It’s only a matter of time before the technology reaches widespread, global adoption.

Decentralization, limited supply, and the Blockchain make Bitcoin the easy winner for long-term investment potential.

Wall Street’s Criticism of a Bitcoin Bubble Falls Flat

JP Morgan received a $13 Billion government bailout after the financial crisis of 2008. The government had to bail out banking institutions from their own subprime investments. Jamie Dimon’s role as CEO of JP Morgan during the financial crisis makes his criticism of Bitcoin as a “fraud” becomes wildly hypocritical and ironic.

What’s more, the criticism is tone deaf in understanding of Bitcoin’s central purpose. Bitcoin eliminates the middleman, i.e. banks, and provides a means to safely transfer money directly from one individual to another. Decentralization is one of the tentpoles of digital currency and investors are using it as a long-term investment to hedge against the endless inflation of the dollar and corruption of banks.

Naturally, decentralization threatens banks and financial institutions. One can hardly blame them for laying criticism against something that threatens their model of business and profit margins.

The Bottom Line

Most experts agree that Bitcoin will continue to grow in value. Fluctuations are a natural part investment and low points merely provide opportunity to purchase Bitcoin at a better price. Predictions for Bitcoin’s growth range from reaching $100,000 in ten years to reaching $500,000 by 2030.

Bitcoin is not a bubble and cryptocurrencies are here to stay.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]

Bitcoin Breaks $4,000 – What’s Next?

Bitcoin breaks the $4,000 mark in August, reaching an all time high

The hard fork, which split Bitcoin into two coins, Bitcoin and Bitcoin Cash, had the world of cryptocurrency concerned that values would plummet amid confusion and fear surrounding the future of Bitcoin. Investors held their breath, waiting to see what result the split would yield. Well, any fears the cryptocurrency community had have been abated. The days and weeks following the split have seen prices for Bitcoin soar to new heights, breaking new records again and again. As of today, August 14, a new record high of $4,286 has been reached.  

Brief history of growth

In 2009, Bitcoin was introduced as a peer-to-peer electronic cash system, operating independently of a central bank. Over the years, increasingly more companies and merchants started accepting the cryptocurrency as a payment form. As the number of transactions grew, interest and awareness about the new ecosystem boomed.

In 2011, retailers like Overstock.com started accepting BTC as a payment method. Non-profit companies like The Internet Archive announced in 2013 that it will begin accepting donations through bitcoins. Little by little, more investors started believing in blockchain technology and cryptocurrency. As a consequence, in December 2013, Bitcoin surpassed the $1,200 mark going. The value of Bitcoin bounced around with highs and lows, but one overall, long-term trend was apparent: growth.

A new financial ecosystem was created around the cryptocurrency. ICOs built on the blockchain compels investors to look beyond traditional investment assets; and believe in the legitimacy of Bitcoin.

In the first quarter of 2017, the price for a single bitcoin surpassed the price of 1oz of gold; breaking its all-time high and reaching $1,400. The cryptocurrency is up 40% in August, 2017 alone and has now reached $64 Billion in total valuation.

Bitcoin projections

Standpoint Research – $7,500 by 2018

Standpoint Research correctly predicted the latest spike and now projects Bitcoin to surge to $7,500. “What’s happening is the floodgates are opening,” Moas, founder of Standpoint Research, said in a phone interview with CNBC on Monday. “I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars

CNBC – from $5,000 in a few months; $100,000 in 10 years

Founder of Standpoint Research, Ronnie Moas, recently told CNBC that Bitcoin might reach $5,000 by the end of the year. He pointed out that since the amount of bitcoins is limited (21 million), the increasing demand could drive up its price.

Venture Capitalist Tim Draper – $10,000 by 2018

Infamous venture capitalist, Tim Draper, predicted in 2014 that the value of bitcoin will surpass $10,000 by 2018. It hasn’t happened yet, but the current surge to $3,800 this year; together with the bitcoin split and buzz around the new blockchain, had made some people re-analyze the ludicrous claim made several years ago. The mere fact that Bitcoin rose from $2,000 to over $3,800 in two months gives us the chills.

Venture Capitalist, Jeremy Liew – $500,000 by 2030

Jeremy Liew, renowned investor and entrepreneur, said in an interview with Business Insider that Bitcoin price could realistically reach $500,000 by 2030. Bitcoin IRA mapped out the potential path to $500,000 in this infographic.

Top 5 reasons Bitcoin will continue to grow

 

What drives Bitcoin’s growth? For some people, the cryptocurrency’s soaring value seems like a jigsaw puzzle. Others have great faith is what’s coming next. Bitcoin expert, Garrick Hileman, argues that one of the key drivers of bitcoin’s growth is speculation. Buying and selling bitcoins may look like a financial trend; but there’s a lot more to it than meets the eye.

  1. Skyrocketing demand in Asia

In the early days of Bitcoin, the boom happened in the US. But the cryptocurrency has now gone global. The surging demand in Asian countries has compelled more investors to ditch traditional investments in favor of cryptocurrency. As of April 1, Bitcoin is an legal payment method in Japan.

  1. Money-transfer services in Bitcoin are soaring

Traditional money transfer services like MoneyGram and WesternUnion are expensive. As a result, startups have started building competitor services on the blockchain. Bluepan is a prime example, the South Korean company is committed to helping workers in South Korea and Japan send money to their families back home in China and the Philippines. Bluepan claims that they’ve processed transactions worth $65 million in 2 years.

  1. Securities and Exchange Commission Consideration

Investors have long been waiting for the US Securities and Exchange Commission (SEC) to approve Bitcoin as an exchange-traded fund (ETF). Approval would mean investment in the cryptocurrency would skyrocket into the hundreds of millions and push the needle forward toward global adoption.

  1. The rise of ICOs keeps Bitcoin on the floating line

The rise of investors eager to start a business on the blockchain strengthens the cryptocurrency investment scenario; surpassing the $100 billion USD market valuation. New money is being invested in blockchain technology, compelling others to expand their horizons and look beyond traditional investment assets.

  1. Global exposure

Increasingly more people – amateur investors and experts alike – have started believing that cryptocurrency is the new money of the future. Governments are accepting it as a legal payment system and venture capitalists are using it to grow their investment portfolio. A wide variety of industries already use Bitcoin as a payment method; Bitcoin ATMs are spreading like wildfire, compelling the average consumer to buy bitcoins, too. All these things combined are raising awareness, making cryptocurrency go mainstream and inevitably increasing its popularity and potential.

Takeaway

Bitcoin is growing and experts predict its value to continue to soar and reach new heights. More countries and individuals are adopting the cryptocurrency as a valuable investment independent of the constant inflation of fiat currency. Bitcoin has every potential to upset the system and become the primary currency of the future.

Ready to Invest in Bitcoin? Register here with Bitcoin IRA.

[mk_mini_callout title=”Free Download” button_text=”Get the Ultimate Investor’s Guide to Bitcoin IRAs” button_url=”/resources/investor-guide”][/mk_mini_callout]