The birth of digital Bitcoin cryptocurrency resulted from the 2008 global financial crisis with an aim to operate outside of central governments, banks, and financial institutions.
There was a tremendous growth of its market value, around 210% during the past year, from around $450 in mid-2016 to a level of $1400 in May this year, surpassing the critics’ skepticism.
Today, Bitcoin has become a highly volatile in nature and difficult to predict its future trend and market behavior. However, people see it as a stronger alternative to print currency and somewhat becomes an emerging asset class.
Still many countries including Russia are skeptical for this digital currency and try to bring it under control, while Japan and some others come out in support of the Bitcoin.
Bitcoin recently made a legal method of payment in Japan, though it continues recognized as an asset and not as a currency, and in India, the department of economic affairs, ministry of finance is examining the existing framework around digital currencies including Bitcoin.
The central bank of the Republic of the Philippines, issued a guideline recognizing Bitcoin as a legal payment method.
While Russian Deputy Finance minister Alexey Moiseev in an interview to Bloomberg said, the Russian authorities hope to legalize Bitcoin and other cryptocurrencies as a financial instrument in 2018.
“Today Bitcoins have a market capitalization of $23 billion, if two years from now that number is $100 billion, I would not be surprised,” says Amith Nirgunarthy, CEO, BlockStreet, reports Investopedia.
Many prominent investors have been raising direct stakes in Bitcoin, thus suggesting an optimistic future for cryptocurrencies!
Interestingly, Billionaire Mile Novogratz holds around 10% of his net worth in cryptocurrencies like Bitcoin and Ethereum and predicts Bitcoin to surpass $2,000 in near future.
A report by Saxo Bank predicts that Bitcoin could cross the $2,000 mark, “If the banking system as well as sovereigns such as Russia and China move to accept Bitcoin as a partial alternative to the USD and the traditional banking and payment system.”
There is a brighter future for the digital currency, especially Bitcoin which is fast getting momentum more than earlier expected by market experts.
You will see an uncertainty and volatility till bigger countries like Russia, China and India would recognize Bitcoin as a main stream asset class.
Forget about news of Trump, Federal Reserve rate hike, gold, rising debt levels, wars, etc.
These will prop up around us and go in no time; in fact you should now think for some other alternatives to Dollars and Gold asset class and hedge some portion of your saving/earnings to Bitcoin virtual currency.
Bitcoin has more favorable investment/return ratio due to many factors and we should also utilize Steemit platform for blogging and unmatchable income potential going forward.
Varun Datta is the CEO of 4new.io. Varun aims to bring about a paradigm shift in the way people search on the internet about cryptocurrencies by providing solid examples, creative explanations, and affordable solutions.
He sees great potential in Bitcoins or cryptocurrencies as an alternative transaction system and believes in the opportunities that it can bring to the internet economy.