The $500,000 Bitcoin Myth or reality.
Good day my Nigerian Bitcoin enthusiasts and pessimist. Talking or writing about Bitcoin has become a dangerous passion that I can't let go. Consequently the launch of my free ebook on Bitcoin (which I made available to Bitcoiners this week. download here if you have not read it) has brought with it many questions and requests for meet ups as more and more seek for more information about this technology that is already disrupting the global financial eco-system. I was shocked with the over 1,000 downloads the book received in 48 hours.
As usual, asides wanting to know what Bitcoin is, how it works, what its origins are, the most recurring questions are; Is Bitcoin safe, How do I make money from Bitcoin and the most important (which truly no man can answer with 100% assurance) which is will the price still go up from the current price? Is it not too late to invest in Bitcoin now that the price is at $950. Basically what most respondents wanted to do was to put me in the position of a Bitcoin TB Joshua where I should put my name out on the streets to shame or acclaim depending on the way my Bitcoin Price predictions turned out!
However being one not to shy away from commenting or taking positions on things I know too well, I am ready to answer these questions in the affirmative. My position on the future Bitcoin price is not based on uninformed guesses nor are they results of excitement over the potentials of this new technology.
My position is based on current realities bordering on issues pertaining to the global economy. Principal among them is the issue of Capital controls; where countries like China, Venezuela, Argentina and Nigeria (Yes even Nigeria) are doing everything possible to ensure that the flow of the US Dollar which is the World's reserve currency is put in check by the authorities.
Another factor is the Declining value of a number of national currencies around the world especially in nations with large populations e.g. Nigeria where the Naira which traded at about N200/$1 in 2015 is now trading at about N500/$1 or Venezuela where the Bolivar which traded at B3/$1 is today trading at above B1000/$1 or Argentina where over $50 Billion is in circulation in that Country. Citizens of these countries in a bid to ensure the safety of their assets would want to keep them in the safest and most fungible asset possible.
Gold would have been the best bet, but we all know acquiring Gold is even more difficult than acquiring the US Dollar so it will be the least of options if a better alternative presents itself. BITCOIN, provides that alternative and has proven itself over the past 7 years, with an increasing rate of adoption and market capitalisation which peaked at over $15,000,000,000 early this week.
Such a move to the safety of BITCOIN will definitely push the price beyond its current $962 to something about $1,150 by early January (Effectively overtaking Gold as the most expensive asset class) Mind you over 94% of the Bitcoin traded volume is driven by the Chinese Market. The impact of the Argentine, Indian, Japanese and other markets is not even taken into consideration here. This also excludes Africa which currently enjoys only 10% internet penetration. the foregoing effectively tells us that Bitcoin activity is not yet adding any significant volume to the total market value of Bitcoin...meaning the potential is still very very high.
If, in the case of Argentina, the people decide to invest the over $50,000,000,000:00 paper money (yes US Dollars not Argentine Pesos) currently in circulation into Bitcoin, the price of Bitcoin will be $2,480
A lot of investors hold Gold as a safe asset haven, however with Bitcoin adoption increasing and access to the platform and technology being made easier,the likelihood of these investors moving part of their funds into Bitcoin is very very high. Should only 1% of Gold holdings be converted to Bitcoin, the price of Bitcoin will be $3,500 and that is where the price is headed. Why you may ask? Because Bitcoin is very close to catching and surpassing the price of Gold (I see that happening in January 2017, Gold is currently trading @ $1,148/Ounce)
So for 2017, I see Bitcoin closing at above $3,000.
Will Bitcoin reach $500,000 some day?
Allow me to take my exit for today. Got Bitcoin questions? Email me at bitcoirian@gmail.com
Download the ebook 7 ways to make money with Bitcoin free here
