Bitcoin has been performing beautifully since February 2016. It has been a year of spectacular growth, and I'm fairly confident this will continue for some time. Why? Let's consider some basic things. In the past few weeks, we witnessed bitcoin drift sideways for almost a week at around $1010 USD. This is something that bitcoin has never done. There is only one word for this- stability. The price of bitcoin has gained tremendous value, while at the same time, gaining a great deal of stability. This alone is a good reason to be long.
Secondly, the world is beginning to find out about bitcoin. The spot light focused on bitcoin has revealed a very powerful strength in its nature. There has always been some underlying fear that bitcoin is just a form of money for people to buy illicit items with. However, the public and political scrutiny looking for illegitimacy has exposed just the opposite, and thanks to social media, everyone found out very quickly. The serious people in the world are done thinking of bitcoin as sketchy computer money, and are beginning to see it for what it is- a technological advancement to how humans store and transfer value, make transactions, and protect wealth.
Let's also consider the nature of the world. If you look back through all periods of human history, you will find that no Empire has ever endured, and in the failure of an Empire, comes the collapse of a currency. No governments money has ever maintained and gained value over the long run, yet, decentralized assets like gold and silver, have held and gained value since the beginning of time. Why? because they are rare, and because they can't be reproduced, what the earth gave us is what we get.
This rare and irreproducible nature is what creates the opportunity to assign arbitrary value. This arbitrary establishment of value is a spark in a society of fuel. If the fuel doesn't ignite, the asset dies, but if the fuel ignites, the asset gains traction and develops value very nicely. Obviously ignition occurred after gold and silver were given arbitrary values. However, gold and silver have a major drawback that bitcoin does not. Gold and silver are not practical in an advanced world. They are difficult and costly to store, lack an easy and precise mechanism for partitioning, and they can be counterfeited.
This is where bitcoin comes in. Like gold and silver, bitcoin is a rare and irreproducible asset that has experienced ignition after being assigned value in 2009. But, it is not impractical like gold and silver. It is easy and virtually free to store, perfectly partitioned effortlessly, and can't be counterfeited. This advantage that bitcoin holds over gold and silver is also a good enough reason alone to be long.
Finally, Bitcoin has the potential to be bank friendly, and it has the ability to be lawfully legitimized, which is why it can survive the journey to becoming mainstream. This sentiment has already been expressed by the United States government, and it will continue to be expressed by countries around the world. Why? Because of competition. When it comes to technology, humans must give in, because those who refuse technology get left behind. Technology is the newest arbiter of evolutionary success, and it can powerfully impact an individuals or a societies ability to survive.
With all this being said, bitcoin can still fail, but what investment can't? To me, it couldn't be more clear how good of an investment opportunity this is. Bitcoin has a strong technological foundation, the support of thousands of years of history, and the ability to transform human transaction- a brilliant, and immensely valuable utility.
Secondly, the world is beginning to find out about bitcoin. The spot light focused on bitcoin has revealed a very powerful strength in its nature. There has always been some underlying fear that bitcoin is just a form of money for people to buy illicit items with. However, the public and political scrutiny looking for illegitimacy has exposed just the opposite, and thanks to social media, everyone found out very quickly. The serious people in the world are done thinking of bitcoin as sketchy computer money, and are beginning to see it for what it is- a technological advancement to how humans store and transfer value, make transactions, and protect wealth.
Let's also consider the nature of the world. If you look back through all periods of human history, you will find that no Empire has ever endured, and in the failure of an Empire, comes the collapse of a currency. No governments money has ever maintained and gained value over the long run, yet, decentralized assets like gold and silver, have held and gained value since the beginning of time. Why? because they are rare, and because they can't be reproduced, what the earth gave us is what we get.
This rare and irreproducible nature is what creates the opportunity to assign arbitrary value. This arbitrary establishment of value is a spark in a society of fuel. If the fuel doesn't ignite, the asset dies, but if the fuel ignites, the asset gains traction and develops value very nicely. Obviously ignition occurred after gold and silver were given arbitrary values. However, gold and silver have a major drawback that bitcoin does not. Gold and silver are not practical in an advanced world. They are difficult and costly to store, lack an easy and precise mechanism for partitioning, and they can be counterfeited.
This is where bitcoin comes in. Like gold and silver, bitcoin is a rare and irreproducible asset that has experienced ignition after being assigned value in 2009. But, it is not impractical like gold and silver. It is easy and virtually free to store, perfectly partitioned effortlessly, and can't be counterfeited. This advantage that bitcoin holds over gold and silver is also a good enough reason alone to be long.
Finally, Bitcoin has the potential to be bank friendly, and it has the ability to be lawfully legitimized, which is why it can survive the journey to becoming mainstream. This sentiment has already been expressed by the United States government, and it will continue to be expressed by countries around the world. Why? Because of competition. When it comes to technology, humans must give in, because those who refuse technology get left behind. Technology is the newest arbiter of evolutionary success, and it can powerfully impact an individuals or a societies ability to survive.
With all this being said, bitcoin can still fail, but what investment can't? To me, it couldn't be more clear how good of an investment opportunity this is. Bitcoin has a strong technological foundation, the support of thousands of years of history, and the ability to transform human transaction- a brilliant, and immensely valuable utility.
Comment:
The black line on this chart isn't and wasn't meant to trace the daily price of bitcoin. More of a guide to where bitcoin is going. We are heading right for the B!