2017 marked a historic development in the financial markets, as Bitcoin enjoyed a year that saw it go from a market value of just over $1000 in January to nearly $20,000 in December. Then it retreated a bit and entered the new year at around the $13,000 margin. This constitutes over 1000% increase in capital for its investors and has made the famed cryptocurrency the envy on the financial markets.
Bitcoin growth isn’t anything new. A quick look at these statistics on Bitcoin by https://bitcoinplay.net/ BTC Casinos reveals that a $100 investment into BTC on July 2010 would have been worth over $6 million USD in July 2017 and over $10 million today.
This incredible growth has not only proven a continual winning record for adopters but has helped to generate a near-cult following for Bitcoin these past 12 months.
With so many skeptics still accusing Bitcoin of being a bubble that will pop any minute, we explore 4 reasons why they are dead wrong and why Bitcoin will remain bulletproof in 2018.
Bitcoin Adoption Won’t Go Away
The primary force driving both the success and ever-increasing value of Bitcoin is in its market adoption.
When Bitcoin first appeared nearly 8 years ago, it was a very limited and small group of the most internet-savvy who bought into the greatness that would become Bitcoin. That fact has changed tremendously over the past few years and today Bitcoin is a highly adopted financial instrument that is used by millions across the globe.
This market adoption has led to Bitcoin being accepted as payment from the world’s biggest brands. You can use BTC to pay for mostly any- and everything online.
You might wonder how this affects you.
Well, the cat is out of the box in the case of Bitcoin adoption and will be nearly impossible, at this point, to undo. Not only will the general marketplace not give up Bitcoin so easily, but with nearly 5.8 million digital wallets in use, the sector is still expanding wider and faster than ever.
Imagine if, tomorrow, for example, the general marketplace was to stop accepting USD. The people holding their capital in USD would revolt and stop accepting anything else and would thus maintain a value for the currency.
Similarly, even if the mass market was to turn its back on Bitcoin, as long as even a small group continues to accept it, it will remain an asset that is tradable for value. Market adoption trends point to continued widespread adoption and as long as there are people willing to hold, trade and accept Bitcoin, it is bulletproof.
Financial Market Volatility & Corrections Are Coming
The financial markets as a whole have recovered from the crash of 2008 and today are at an apex that is simply phenomenal. The stock markets are all at historic highs and the sluggish real-estate market is booming again. This type of rapid growth is not warranted and has no real substance to it.
In fact, a closer look at market data shows a similar bubble forming to the one that popped in 2008.
With this kind of over-value in the financial markets, a correction is only a matter of when and not if.
In case of major corrections, investors tend to go to hard assets such as gold or US dollars. Considering that the US dollar is likely to reduce in value as the American markets correct and gold is not the asset of choice of the younger tech savvy investor class, Bitcoin will be used in a similar fashion.
Bitcoin is already used by a small segment of the internet investor-base and in the event of heavy conventional market volatility will become a primary wealth and capital storage option for that growing segment.
Legislation Will Not Work In Curbing Use
Governments have tried to regulate, legislate and even ban Bitcoin. Through all that, it has remained strong. The reason is that Bitcoin was created for the purpose of taking away the control from the governments and central bankers. Furthermore, in the event of heavy legislation, a black market will be created for Bitcoin, only driving up the price within those markets.
For example, when the US government banned alcohol during prohibition, the price of a bottle of spirits tripled overnight. Similarly, in the event of shots fired from governments in the form of legislation on Bitcoin, it will only continue to increase in value due to mass-market scarcity.
Globalization is Driving the Industry
The final factor that is making Bitcoin relatively bulletproof and should continue that trend into the new years is the globalization of the world in general. The internet makes it possible for anyone to do business anywhere.
Additionally, Bitcoin is the currency of the internet and is easily converted online. This global trend is one of the key factors driving Bitcoin and until another internet and global option arises to compete with it, Bitcoin will remain the main currency of the internet and thus the global marketplace.
For example, for a web entrepreneur who sells products to a variety of countries and territories, accepting Bitcoin could mean much less cost in conversion fees, accounting fees and taxes. It simplifies the process of doing business in this global environment and is thus bulletproof until another option is brought into existence that can address the sector needs.
As Bitcoin continues to act very bullish and becomes more and more market adopted in the new year, its value will continue to grow. Bitcoin is already too widely established and adopted to simply fade into obscurity. Plus, it’s the new generation’s go-to-asset in the event of market volatility, as gold was for the generation before.
Lastly, considering that Bitcoin legislation actually works in favor of the Bitcoin price due to black market factors, and that it is the internet’s only real, globally-accepted currency and payment option, Bitcoin will remain bulletproof for the foreseeable future and continue its success in 2018.
Karthik Reddy, Community Manager at Bitcoinplay.net, is the author of India’s Number 1 travel blog. Boasting an MBA in computer science, he once decided to get away from the office desk life and take a breathtaking journey around the world. He is eager to use the power of the global network to inspire others. A passionate traveler and photography enthusiast, he aspires to share his experiences and help people see the world through his lens.