What is the value of a Bitcoin and why you should understand the growing interest in digital currency and become part of the tribe.
No, Bitcoin is not a scam or a con in fact it is much more important than you think
In part Bitcoin is based on supply and demand and hence the meteoric price rise, however, it is much more than that.
First of all there is a limit to the number of coins available and they are tightly controlled . Out of the maximum 17million available they are spread in mostly controlled areas.
| Who owns Bitcoin | A total of 25 million people have invested |
| Treasures have 1.5 million | Held for the long term |
| Lost coins 3.1 | Estimated at 3.1 million |
| Cold storage 8 million | Long term investments |
| Satoshi Nakamoto group 1.3 million | The inventors and original owners |
| Available for trading 3 million | The current market |
Therefore the market is indeed very thin. When you consider that Elon Musk recently bought about 30,000 coins for his 1.3 billion and they have increased in value by about 20%
Is Bitcoin Crypto really a currency
In the term it is a store of value and can be used to buy product it certainly is. In fact it is now worth more than the UK Pound that was traditionally a gauge for all money. Bitcoin can be seen as a legitimate store of value.
Some assume it is a non productive asset yet it has constantly been a hedge against inflation. In fact even if it just covers a medium inflation rate over the next 10 years it should be a $500,000 coin.
Political intervention is entirely unlikely except for financial manipulation in a small country like Turkey. They don't want there money going to Bitcoin.
Accordingly a great comparison is PayPal an everyday currency used by an estimated 361million people and considered legitimate currency.
It is interesting that Elon Musk was a early investor in PayPal. He sold at a hansom profit that managed to fund Tesla etc.
In fact the opportunity exists for another big player to take a million coins out of the market and it may be considered that Apple, or similar who have large reserves of cash may be close to a transaction like this.
Fiat money is a government-issued currency that is not backed by a commodity such as gold. … Most modern paper currencies, such as the U.S. dollar, are fiat currencies.
authority.com
Therefore Crypto currency has no more or less stability than paper money therefore it has value. Beside that it has inflationary potential.
Crypto basic a short look
Can you get your money out of the Bitcoin market
Bitcoin is a tradeable commodity and you can deposit or withdraw at any time. The price you will use is the daily announced price less any fees that may be payable.
Bitcoin could crash
There is always a risk that circumstances could see the currency disappear. In this case investors may lose some or all of their funds, certainly a frightening position.
However this same situation applies to any common currency used in the market. Take the example of countries that experience extreme inflation. You buy a loaf of bread one day for a couple of tokens and after several months it cost 10 times more or even 100 times more as the value of money declines. It has happened and continues to happen every day.
The US$, UK pound and even the Euro decline in value every year, stick a million under the mattress and come back in 10 years when it is worth about half that.
Similarly gold, silver and diamonds are a bad long term investment as they fail to keep up with inflationary pressures. Gold no longer backs our currency, silver is not as scarce and diamonds can be commercially made.
Institutional investors will shore up the value
When you have a currency supported by the worlds largest market players they will ensure the value is retained.
The top 1% of bitcoin investors have more that 3.3 coins. That is a small list of around 260,000 entities.
The next 5.2 million investors have less than 0.3 of a coin and the balance down from there
Therefore there is a very small spread in Bitcoin holders.
What if the Super funds decide it is a great opportunity.
There is every chance the multi trillion dollar super funds will have to invest in Bitcoins as a hedge against inflation. They must be looking at opportunity lost and that this is not an aberration.
Several billion invested in Bitcoin would be a miniscule percentage of the funds and offer little risk of loss. It will happen.
One international hedge against inflation
Wherever you are in the world Bitcoin has the same value and is easily traded. When you are going through massive inflationary periods like Venezuela, Zimbabwe or Argentina where would your money be the safest. The answer is simple and easily identified.
When real estate values crash or even decline over time having your money invested in a growing equity may seem like a great option. From anywhere at any time
Are you too late to join the crowd
We have certainly missed the early opportunities for the big gains however this is a very young currency, it is only a few years old and has a lifetime to run. A Bitcoin at a million dollars is not out of the question in the years to come.
What other crypto opportunities are available
Will there ever be another Bitcoin where you can ride the escalator from the bottom.
Ethereum is the next most popular however unlike Bitcoin it grows with the market. An original supply of 72 million is added to by about 18 million a year.
Litecoin has a market limit of 84million shares with a platform similar to Bitcoin
Like bitcoin, litecoin is a form of digital money. Utilising blockchain technology, litecoin can be used to transfer funds directly between individuals or businesses. This ensures that a public ledger of all transactions is recorded, and allows the currency to operate a decentralised payment system.
Investopedia
Another is a new entrant to the market titled Coinbase. This is different in that they floated the product on the New York Stock Exchange. However instead of setting a price as is done in a normal float they let the market decide. They expected about $250 a share however it went to over $350 before coming back to around $290. We may see a correction soon from its current value of just under $80 billion. ( Bitcoin about $700 billion)
The Coinbase IPO is potentially a watershed event for the crypto industry and will be something the Street will be laser-focused on to gauge investor appetite,” Wedbush analyst Dan Ives wrote in a note to clients. “Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of Bitcoin and crypto for the coming years.”
Investors.com
Importantly what is the value of a Bitcoin when it drops
Don't worry about the dips
You are looking at a trading stock where it is dominated by small holders. Any news will affect the price and rises and falls are a daily thing.
All sorts of tools and advise are available on the best times to enter a market. As my mentor said to me;
“The best time to buy crypto was in the past and the next best time is today”
My final words
First of all this is a new world of adventure offering excitement and entertainment as well as profits and losses.
I am not an expert nor do I make any investment advise my job is to simply tell what I see.
Yes I hold an investment in Bitcoin and would love to grow that to a whole coin as I slowly build my holding.
My introduction to Blockchain and currencies was over two years ago however I failed to act. and made a million dollar mistake. Cry no more it is still early days.
Accordingly I offer no advise or recommendations made.
Can anyone make money highlighted for you
What is the value of a Bitcoin by Peter Hanley
In conclusion; Perception drives a market
