One thousand two hundred sixty-one percent growth in one year? Nobody in their right mind would have predicted that for Bitcoin or any other financial instrument without close to that percentage of alcohol in their system.
But that’s what’s happened with Bitcoin between November 28, 2016 and the same date a year later. Hitting the $10,034.86 mark at 7:34 p.m. Central time on the Coindesk Bitcoin exchange index was a milestone that many saw as a possible high-water mark, and yet others see as an example of just how much future growth remains.
According to CoinTelegraph.com:
Back in 1994 email was globally adopted by around 0.25 percent of the population. However, it was invented in 1972 by Arpanet engineer Ray Tomlinson. It was, for a very long time, the only ‘killer application’ for the Internet. It all sounds quite familiar. Bitcoin, invented in 2008, was mostly a toy for tech geeks and anarchists who saw a revolution in money as the global economy collapsed. But it was just a hobby, nothing else. Then, as it gained momentum, it became the only ‘killer app’ for the Blockchain, and dominated that space for some while by itself.
On this date one year ago, Bitcoin’s price was $731.52 U.S.
Last week, hedge fund manager Mike Novogratz predicted that Bitcoin would end the year at $10,000. We pointed out:
If the current trend of valuation increases continues, the price will reach $10,000 by Christmas, if not long before. There’s nothing sure about that, due to the market volatility to which Bitcoin holders have become accustomed.
With the events of the past 12 months, it’s no longer outrageous to think anything is possible with Bitcoin and cryptocurrencies. Another 1,261 percent increase over 12 months would put Bitcoin’s value at $126,100 U.S. That’s fun to think about, but it’s not what we see as realistic.
However, the growth trend will continue at an impressive clip:
- Data indicates that Bitcoin is gaining 500,000 new users per day around the world, Bloomberg.com reported. As long as the price trends upwards without a major crash or correction, that trend will continue.
- Reflective of that statistic, the San Francisco-based Bitcoin exchange Coinbase has had more than one day in recent weeks when 100,000 new customers have signed up.
- Also reflective of that statistic: Coinbase now has more users than the stock brokerage Schwab. According to CNBC, Schwab reported 10.6 million active brokerage accounts in October. Coinbase had 11.7 million users in October, and that number has grown to 13.3 million as of November 26.
- As Bitcoin’s value continues to skyrocket, pressure is mounting on institutional investment firms like Schwab to introduce a cryptocurrency product or products. While some hedge funds are already involved, legacy investment firms for the most part are keeping a safe distance. Their customers are not accustomed to price volatility of hundreds of dollars per day, which is common with Bitcoin. We’ve reported that Goldman Sachs is exploring a Bitcoin trading operation. There is nothing new on that since the initial October report.
Now, on the other hand, a “correction” seems very likely at some point. The cryptocurrency markets operate very similarly to equity markets in that they react to news developments. There is a history of Bitcoin’s value diving when what is perceived as bad news regarding the cryptocurrency occurs. But over the course of nine years now, it has always rebounded.
When the “correction” occurs, there will be many so-called experts who will be in “I-told-you-so” and “this-is-the-end-of-Bitcoin” mode. It won’t be the case. This is not to say there may not be some unforeseen event such as a major exchange hack that will scare many people away. It’s happened before and it will happen again.
Flight Ventures Partner Lou Kerner gives some excellent perspective on the Bitcoin market past, present and future in the CNBC video above. He compares Bitcoin to Amazon’s at-times-rocky path to its position of retail marketing dominance today.
Our advice is not to try to “day-trade” the cryptocurrency markets. Anyone less than a world-class expert at that endeavor is likely to be burned. The best advice is to buy and hold. History shows that the value will continue to rise.
You may be wondering if there is a way to increase your amount of Bitcoin without having to buy at the price that will continue to increase. We have discovered a company that has an investment strategy that returns 140 percent of your capital investment over the course of approximately six to seven months. It is important to say that there is risk in any investment, and that you should not invest anything you cannot afford to lose. We recommend signing up for a free account, putting a small amount of Bitcoin in, and growing comfortable with the reliability of daily returns.
The compounding aspect of this product is what gives you the opportunity to grow the quantity of Bitcoin you possess with a relatively small capital outlay or expense:
Anyone seriously into Bitcoin should at the very least learn more about this opportunity.