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Bitcoin Cash or Gold

Bitcoin’s Future: Cash or Gold?

Is Bitcoin destined to be the new currency or will it be a long-term store of value?

In February 2015, it was reported that the number of retailers accepting Bitcoin had reached 100,000. Most importantly, five of the top 500 leading internet sellers accepted Bitcoin as a method of payment. Those numbers were joyous news in the digital currency community; it meant that Bitcoin was growing in adoption and perhaps a future free of fiat currency was possible.

Fast forward to 2017 and the landscape has changed significantly. Bitcoin has seen a 55 percent increase in transaction volume, but the number of leading internet sellers accepting digital currency had dropped down to three. The explanation is likely that Bitcoin users are holding onto their coins due to their skyrocketing value rather than spending coins for daily transactions.

Fewer payment transactions and an increase in “hodling” (a Bitcoin community term for holding onto coins) has many wondering if the future of Bitcoin will be more like precious metals like gold rather than digital currency. The truth lies in both: Bitcoin will increase as both a store of value and as a decentralized payment system. Here’s why Bitcoin will thrive in both areas of value:

Cash: Japan Will Accept Bitcoin as Official Payment in 260,000 Stores

April 1, 2017, Bitcoin officially became a method of payment in Japan. Two major Japanese retailers partnered with Bitcoin exchanges to start accepting the digital currency as payment. That partnership proved to be only the beginning of Bitcoin in Japan. Coincheck, a Japanese exchange, partnered with Recruit Lifestyle which opened up 260,000 food establishments and retail locations nationwide to accepting Bitcoin payments.

Japan’s widespread adoption and acceptance of Bitcoin sets a precedent for other countries. As other governments consider how to approach cryptocurrencies, the success of Bitcoin in a leading country like Japan is likely to be influential. Allowing Bitcoin payments encourages commerce between Japan and other countries.

Furthermore, Bitcoin payments are low cost and faster across boarders than traditional payments. One universal currency that does not need to be exchanged and is not subject to exchange rates is inarguably valuable to all parties.

Beyond the borders of Japan, Bitcoin as a cash payment is of value to small business owners in the United States as well. Credit card companies typically charge 2-3% on every transaction. For small business owners in particular, those fees are a significant drain on cash flow. The margin of success for a small business to succeed is razor-thin with 50 percent of businesses failing within the first five years. Needless to say, every dollar counts to the small business owners across the country and exorbitant fees from credit card transactions is a problem (particularly in an increasingly cashless society).

Bitcoin and other cryptocurrencies typically cost between 0-1% for every transaction.  Small businesses can send or accept bitcoins as payments with no fees attached. Bitcoin doesn’t require a bank to verify each transaction, which means business owners don’t have to sacrifice revenue to financial institutions.

The number of leading internet sellers accepting digital currency had dropped, but it may be small business owners that lead the charge of adoption. The math of Bitcoin simply makes more sense for small business owners than traditional fiat currency. Having said that, there is a strong rumor that will soon begin accepting Bitcoin. being the giant that it is, acceptance of Bitcoin here could start the dominoes to fall for other major retailers.

Gold: Greater Adoption of Cash Will Make Bitcoin a Better Long-Term Investment

Bitcoin is not a game of either/or: ether Bitcoin is used for payment transactions OR it is a long-term store of value. In fact, Bitcoin growing in adoption opens up more and better business opportunities, increases the demand for Bitcoins – and, by extension, their price. The increase in price makes Bitcoin a better long-term investment for individuals and makes it more feasible for business owners to enable Bitcoin payments at their stores and brings other countless benefits to the participants of the market.

Japan’s mass adoption of Bitcoin as a payment system can be seen as the next step for digital currencies with businesses. Adoption of payment is driving up price, which has lead to many investors looking to take advantage of the long-term growth potential of Bitcoin. It is now legal to rollover traditional fund into a Bitcoin or other cryptocurrency self-direct IRA account. More and more investors are turning to digital assets for retirement.

The truth of the matter is that an increase in adoption of Bitcoin as a payment system will increase its value as a long-term investment. What’s good for one is good for the other.

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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 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.


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.

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