Even with exceptional returns; 123% in 2016 and strong CAGR predictions; 45% annually for the next 9 years, Bitcoin is still in the early stages of adoption. Ironically, it’s the mental and technical barriers to entry that keep prices surging.
The future value of Bitcoin
Like land, they aren’t making any more Bitcoin; if you invested $10,000 in 2011 it would be worth $30 million today. Further, considering Bitcoin’s market cap is currently at approximately $US21 billion – compared to Apple’s $US240 billion, it creates perspective on how early in the game it is for Bitcoin.
How to buy and invest in Bitcoin
Founder and CEO of Australian Company, Bitcoin Trader, Nathan van den Bosch explains, “Bitcoin is an entirely new concept, let alone a new asset class; there are immense mental and logistical obstacles to acquisition – understanding the Blockchain, hot wallets, cold storage, private keys, public keys… It’s fine for techies who have endless hours to invest in research but a huge barrier for everyday investors. Ironically, this is one reason Bitcoin returns are so high; but we won’t always see a CAGR like 2016 (81.7% – compared to Gold at 8.88% or Real Estate at 5.68%).
Van den Bosch has a Bachelors of Economics from Sydney University, a Masters of Commerce from University of New South Wales and more than 20 years’ experience trading innovative IT systems. Bitcoin Trader was established, “to provide guidance on compliant investments in Bitcoin given the minefield of legislative considerations.”
This minefield included understanding Australian Tax Office classifications, Capital Gains Tax (CGT), Goods and Services Tax (GST), the treatment of Bitcoin for personal use; The Australian Corporations Act 2001 (Cth), The Australian Financial Services Licence (“AFSL”), The Anti-Money Laundering and Counter-Terrorism Financing Act 2006, Compliance and reporting under the Superannuation Industry Supervision Act 1993 (SIS Act) for SMSF Investors, Trustee considerations, Legal requirements for SMSF Deeds and since there wasn’t one – creating the first compliant Bitcoin Annual Audit Process.
“On top of all that,” Van den Bosch muses, “our SMSF clients didn’t want to store their Bitcoin under the bed.” Bitcoin Trader sourced the best cold storage device, Vault solutions (safety deposit boxes), Custodial services, and Bitcoin insurance. “Now all you need to do is fill out a few forms, make a bank transfer and look forward to your retirement.”
What does Van den Bosch see for the future of Bitcoin?
“Given we are at the Early Adoption stage of its life cycle, these gains will only last another 3-5 years.”
“Then, like all asset classes, Bitcoin will mature; I expect returns will settle around 15-25% per annum – which is still incredible growth for any portfolio.”
Appeared on May 2 2017 in:
Bitcoin Trader is a personalised cryptocurrency brokerage firm catering to individual, corporate, institutional and SMSF clients. The company is incorporated in Australia, with established global partners providing access to high liquidity and multicurrency settlements. Our core focus is on safe, secure and compliant cryptocurrency investment, divestment and portfolio reallocation.
Disclaimer: This content is for informational purposes only. It does not constitute investment or financial advice. Any information, material or commentary is intended to provide general information only. Information contained in this document has been obtained from sources believed to be reliable, but BT Brokerage Services Pty Ltd trading as Bitcoin Trader, makes no representation as to its accuracy or completeness. Before acting on any information contained in this document, each person should consider its appropriateness having regard to their own or their clients’ individual objectives, financial situation and needs. You should obtain independent taxation, financial and legal advice relating to this information and consider it carefully before making any decision or recommendation.