Published in “Investors Voice”, September 2017.
Bitcoin has tripled in value this year – kicking off 2017 at $US998 and surging to over $US4000 today. It might be too late to be a “Bitcoin Millionaire” (one of the lucky few who bought it for a few cents five years ago), but the full value of a cryptocurrency investment is far from realised. To understand its long-term value both the Industrial Revolutions and the future of commerce need to be considered.
From the 18th Century we evolved from agricultural, to mechanised industries, arriving in the 1980’s at the IT age. Personal computers, the internet and email were radical ideas. We never thought there’d be an evolution that would bring even greater change.
Then we witnessed the Fourth Industrial Revolution – where IT moved from supporting traditional industries to becoming the industry itself. According to McKinsey Global Institute, “Soaring flows of data and information now generate more economic value than the global goods trade.”
The Industrial Revolutions
A digital economy requires a digital currency. But ultimately, what does the creation of cryptocurrency mean? Nathan van den Bosch, CEO of Bitcoin Trader, suggests, “What you’re basically asking is why cryptocurrency’s exist in their blockchain format. Simply, what’s happening at the moment is we are digitising wealth. What that means is, instead of storing value in gold or fiat currency, it’s stored in a blockchain. Instead of having a bank balance and a bank ledger you have a blockchain balance and a blockchain ledger.”
Arie Levy Cohen, Banker and Entrepreneur, (CEO of Blockhaus Tokenised Ecosystems and Singular DTV) states the economic future will exist solely as “distributed, decentralised, tokenised ecosystems.” He asserts, “Paper money; cash, will go away. The connection between identity, cryptographic security and the system of credits and debits will be the future. Participating in the building blocks of something like that is one of those opportunities that doesn’t come every 100 years…this is the ride to be on.”
Van den Bosch recommends participating in each of the areas where blockchain is booming, his three favourites are; “Obviously Bitcoin – the global digital currency, Ethereum supports the Internet of Things and the apps that work with it and Ripple is the cryptocurrency used by banks themselves.”
Top Three Cryptos
Fifteen of the top fifty banks have already adopted Ripple; members include Westpac, UBS, and even the US Federal Reserve has given it a vote of confidence. Ethereum smart contracts are used globally and supported by Microsoft and JP Morgan. Despite it’s volatility (and recent hard-fork) Bitcoin continues to boom.
The good news is – Ripple is still only 20 cents.
The great news is, Paypal Director Wences Casares, projects Bitcoin will reach $1 million in 5-10 years. That’s when it will be too late.
Bitcoin Price Predictions
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