Does it still make any sense to buy Bitcoins in 2017?
If the question above has run through your mind at least once, we invite you to stay with us for a few minutes. We’re going to discuss if it really does make sense to invest in cryptocurrency in 2017 and why?
Let’s start with some data. This chart presents Bitcoin prices change since late 2012. In 2016 Bitcoin price has gone up more than 100%, climbing from around $430 to $963 per unit as of December 28th. Experts from CoinDesk predict it’s going to push even harder in 2017. And they’re not the only people who see an extremely high potential in Bitcoin.
According to Jeremy Liew, the first investor in Snapchat, and Blockchain CEO & CoFounder Peter Smith, the cryptocurrency hasn’t reached its max potential yet, not even close.
"We believe Bitcoin awareness, high liquidity, ease of transport and continued market outperformance as geopolitical risks mount, will make Bitcoin a strong contender for investment at a consumer and investor level," the two said.
Both Jeremy and Peter think that it’s realistic for Bitcoin to be worth $500.000 by 2030.
But…
If you look at the chart, you can quite easily notice that the price skyrocketed in December 2013 just to crash in the next few days. And that wasn’t the only boom-bust cycle for Bitcoin. What does that mean? Does that mean that Bitcoin is not stable? Not really. Does it mean it’s just a matter of time before it crashes completely? Well, there’s always a possibility of a bad outcome. Is it going to happen? Probably not.
There is a lot of skepticism about Bitcoin and cryptocurrency in general. If you’d like to understand better why prices go up and down, we recommend you to check a video made by Chris Dunn.
Back to the roots
So going back to the question. Does it still make any sense to buy Bitcoins in 2017? We think - yes. Want to know what are the reasons? Let’s go through some of them:
- According to statistics, a number of Bitcoin users is doubling every 12 months (~371 days). Political restrictions in big countries such as China and India will eventually drive more and more people into the usage of the cryptocurrency.
- Just in 2 years the number of transactions has gone up from around 100.000 to nearly 300.000 (300% growth).
- Some countries have plans to get rid of cash which can result in an increased demand for digital currencies such as Bitcoin.
- On April 1st, Japan has made cryptocurrency a legal payment method. Which means countries start seeing potential in it and that’s a good news.
- More and more services will start accepting Bitcoin payments because of the increased demand.
- The global economy is unstable and Bitcoin isn’t really connected to the national currencies as well as stock markets. In fact, Bitcoin can benefit from the collapse of the traditional global economy. Diversifying your funds in Bitcoin can pay off in case the crisis happens again.
- The maximum amount of Bitcoins is set to 21 million and you can’t pass this mark. As of April 10th, 2017, the total number of Bitcoins mined equals 16.266.700. Which means we can assume the price will increase as the user count of Bitcoin grows and the number of yet-to-mine Bitcoins decreases.
This leads to our conclusion. Bitcoin is not planning to leave us anytime soon and has huge potential for investment. If you’d like to learn more about how to buy it, what to be careful about etc. So make sure you stay tuned. We’re going to cover this topic in our next blog post.
If you have any comments or questions - feel free to reach out to us contact@buycoinnow.com!
