Most people are interested in the bitcoin due to its great appreciation since 2013, or on its glorious history of rising and revolution, that has made the digital currency an attractive investment alternative. The value here has everything to be just the beginning of an unprecedented process, given the unique characteristics of the technology that many point to as the "future money". I will talk about four reasons why the value of bitcoin has everything to keep growing, gaining new users looking for alternatives to the traditional financial system.
You can see the last post I made about bitcoin here; https://steemit.com/bitcoin/@cryptoeasy/btc-market-analysis-why-the-traders-looks-like-they-are-on-the-beach
Offer x Demand
The growth of the bitcoin transaction volume combined with a decreasing inflation rate by design are fundamentals that point to the bitcoin appreciation trend will continue in the future.
(bitcoin transaction volume)
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(decreasing inflation rate)
Source ( http://bitcoin.stackexchange.com/questions/37077/how-much-inflation-does-bitcoin-have-year-by-year )
The bitcoin's inflation rate is defined in the deflationary form protocol. Every four years, a reduction of 50% in bitcoins supply is applied, reducing the marginal money supply until the ceiling of 21 million units is reached in 2140. Remember that five years ago the bitcoin was worth around US $ 0.30, while the value currently on the international market is $ 570.
Large investors are waiting to buy
For now, most traditional investors in the financial market even considered keeping part of its assets in bitcoin. At first, the tougher stance was due to the image problem related to bitcoin, constantly on the sales of drugs, terrorist financing and illicit activities. Currently the main obstacle is the major regulatory uncertainty regarding the digital currency ( https://steemit.com/money/@cryptoeasy/the-regulation-debate-that-leaves-bitcoin-in-child-development-to-adult-stage-something-that-you-must-see ), which makes the creation of regulated investment mechanisms, known as ETFs, the main investment channel for large institutional funds.
Several applications for approval of regulated funds focused on bitcoin are currently under review and likely to be approved in the coming months, significantly increasing the demand for digital currency.
Exchange from paper to digital money
Governments around the world are encouraging the massification of digital payments and trying to get away as much as possible of operations with physical cash. The purpose behind these measures is to increase the control over transactions and have more ability to record and collect taxes, and gradually remove from circulation the physical money. As forms of digital payment become almost mandatory, more people will have known advantages of bitcoin, especially in terms of efficiency, low cost and privacy.
Currency war
As the dollar continues its chronic inflation process fruit generation of monetary policies adopted after 2008, the euro area is steeped in a series of severe fiscal crisis spread across the major countries of the bloc.
China, in turn, intensifies its efforts to make the yuan the new global reserve currency, attacking the dollar both to get rid of US securities as to promote credit denominated in the Chinese currency as a funding mechanism for projects around the world.
The depletion of central banks and monetary interventionism make national currencies find themselves under heavy pressure, with financial flows generating serious consequences on people's lives. The world is immersed in a currency war, with the main fighting potential to stimulate their battered economies, with the cost of devaluing the purchasing power of people and inflate various bubbles, fueled by cheap credit.
After we watch the recent collapse of a number of economies (Zimbabwe, Cyprus, Greece, Argentina and Venezuela) and the long list of countries in line, it comes more and more space and interest in centralized economic systems and at constant risk of crisis.
The fundamentals remain strong. But bitcoin isn't a get-rich-quick scheme! In about 2 years from now, the price of Bitcoin should at least be 4-5x today if not greater. And just the fact that you are participating in a revolutionary, never seen before in history currency
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