The world of Bitcoin and cryptocurrencies is one of great uncertainty, but for now, interest in the original Bitcoin is surging. The value is fast approaching $4,500 per coin, generating massive wealth and interest. That’s great news for early investors, but why is it happening?
The main reason is economic uncertainty around the world. Donald Trump’s embattled leadership of America and his abandonment of progressive policies is the key concern, while the damage of Brexit to Britain and Europe continues to be hidden by politicized headlines and genuine fear of the unknown. This pushes investors to commodities that transcend the dollar or pound.
Many analysts, including the likes of Goldman Sachs, are putting Bitcoin’s short-term price at $5,000, but some see the long-term value of the currency reaching $20,000, with many peaks and troughs along the way. That’s simply due to the trickle effect of a slow but increasing volume of the world’s tradable commodities being switched to the high-yield value of Bitcoin.
In five years, that could see Bitcoin as valuable as all trading in gold, and in 10 years as the most valuable commodity on the planet.
Yes, prices will dive from time to time, as regulatory changes occur around the world, but the power of Bitcoin and the utility of blockchain to many businesses have put it on a stellar trajectory.
In its wake, there will be support for Ethereum, Bitcoin Plus and the growing number of alt-currencies, as investors look to diversify. But, as far as the headlines go, with the focus on the original Bitcoin, that will be where most of the action is.
As blockchain becomes a part of more transactions, and a way of doing business, it will make sense for the currency part of the transaction to use blockchain as well, which will encourage more industries to adopt Bitcoin and help drive usage and the value to new heights.
With any legal blocks, hacks of vaults and exchanges causing major short-term damage, it will be a far from smooth ride, but there is a huge upside and scope for Bitcoin to be the future of commerce, which is what makes it such an enticing investment.