Bitcoin reaches a new high: surpasses the $2000 price level.
The table above summarizes the astronomical growth of Bitcoin. Bitcoin outperforms every other asset class (stocks, currency, commodities, real estate). In fact, in 2010 bitcoin ushered in a brand new asset class – cryptocurrency. It did not do so well in the beginning as people tried to get their heads around it.
As the idea took hold and people started realizing its true nature and true value , it started to take root- bit by bit it started to gain momentum. The motivations behind this interest are the same as for any other asset class. Growth, security, hedging, speculation, income.
When I think about it, with so many countries and currencies in the world, trade shifting more and more towards the internet, it was time to have a common currency that is fast and secure. Bitcoin is a silent revolution in the world of “money”. The people vote, the people decide what the price of a bitcoin should be. The internet is the “Global bank” with global ledgers, every transaction visible and tracked (to a pseudo anonymous public address).
Well, it comes as no surprise, that more and more people are getting interested in bitcoin. The growth is a clear indicator that people are looking for a change, people are looking for new ideas to invest in. The fate of gold, stocks and bond, and foreign exchange are dependent on the government and banks and with bitcoin people are no longer tied to these systems for their money.
So where is Bitcoin headed?
The price of bitcoin is rising with no boundaries. If I were to speculate (with some facts).
The smallest denomination is a “Satoshi” for it to be equivalent to a cent each bitcoin should be worth 1 million USD.
Note: The name Satoshi is of Japanese origin. The meaning of Satoshi is “clear thinking, quick witted, wise”.
I believe that was the original intent of Satoshi Nakamoto, choosing the fraction, limiting the overall supply (21 million bitcoins by 2140) all looks like a plan that is being executed to perfection. There will be enough BTC to cover the worlds wealth!
What does this mean to the future of stock market and investment market? Well, that is the subject for another blog.
Reference: https://pensionpartners.com/the-evolution-of-money