The Price Of Bitcoin Got You Down?
Well suck it up, buttercup. Welcome to investing in a highly speculative market with little regulation. It is beyond obvious that cryptocurrencies are actively being manipulated and fall victims to wrong doings of criminals and reckless token holders. This includes the hundreds of tokens created through an ICO, with no intention of delivering a final product. This has absorbed billions of dollars away from innovative technologies such as Bitcoin and Ethereum.
The Good News For Investors
New technologies take decades to become fully automated by society. It took nearly 30 years for the financial sector to adopt electronic trading. When electronic stock and commodity trading was presented to companies in the 70’s, it was shot down by everyone. Despite being a highly prosperous and advanced business model, financial institutions preferred going out of business over than massively adopting this new technology. Bitcoin and cryptocurrencies will follow the same suit as electronic trading back in 1970, when it was invented (didn’t catch on in the US until the 2000’s).
Although, cryptocurrencies accelerate exponentially in their market movements and growth, the Global Mass Adoption (GMA) of Bitcoin and altcoins is still many years away. Innovation does not come quickly and cryptocurrencies are no exception. Most financial institution would rather go out of business than adopt bitcoin and this will likely be the demise of thousands of firms. Bitcoin will become mass adopted but it will take years for the majority of the opposition to bleed out and shut down operations.
Bitcoin Has Enormous Room To Grow
As of writing this Bitcoins market cap was 112 Billion USD. This figure is minuscule compared to the globe’s “Broad Money,” which is estimated at 90.4 Trillion USD. Bitcoin’s market cap equals .016% of all the money worldwide. The tiny slice of the Money Pie that Bitcoin holds leaves enormous opportunity for its growth. Bitcoin is a proven peer to peer payment system that truly negates the effect of inflation. The economies of developing countries are beginning to sour, leaving many countries with a currency that is rapidly losing its value. Turkey’s Lira has dropped 50% to the US Dollar, along with Argentina’s Peso. With access to the IOT reaching every corner of the world, residents of countries with dying currencies will have the option to switch to cryptocurrencies and will likely do so in the next 5-10 years.
The mass adoption of Bitcoin and altcoins will cause money to pour in at an exponential rate. Since Bitcoin has a fixed supply, and mined Bitcoins are only minted when work is completed, the influx of money into the market cap will drive the price of Bitcoin to new highs. Remember, (Price = Market Cap / Circulating Supply) once the market cap shoots up the price will correct and leave many investors extremely happy.
So How To Win In This Market
The key is creating a goal and finding value. Personally, I believe the greatest value in speculative markets is finding innovation and investing in it for the long haul. Although, active trading can be profitable the majority of traders lack the discipline and market acumen to make high profits. Bitcoin will continue to disrupt financial institutions and will become a major player in the payments space. Bitcoin is the entry to point to mass adoption and will allow select altcoins to become adopted worldwide. How investors win in this current market is to find projects that have a rockstar team and are actively pursuing the end goal of the project to their maximum extent, as well as, crafting a project that solves a real world problem that affects people worldwide. Investors that find these projects and invest in them for the long term (10+ years) will be thanking their younger selves when they take profits a decade later.