Buy a Bitcoin, Before You Can’t
When the Bitcoin gurus tell you to purchase bitcoin their justifications seem hieroglyphic and often install a sense of confusion. This article puts things in perspective… for everyone. It looks at the events happening within the Bitcoin market that show strong symptoms of adoption.
Should You Buy It?
Yes, you should buy Bitcoin
Here’s why: The market is seeing widespread adoption which has a direct correlation to price. In other words,
Greater Adoption = Greater Price
The Adoption of Bitcoin is dependent upon:
1. The number of people spending or sending it
2. The ability and difficulty to convert Bitcoin into other forms of currency
Where is evidence of Bitcoin growth? Let’s look at a few concrete market factors.
BTMs — Widespread Growth: 7,000+ Active!
In 2017, the year that a single Bitcoin reached $20,000 there were under 1,000 Bitcoin ATMs (BTMs). Three years later, there are now over 7,000 BTMs globally which is a 700% increase over the past 3 years. BTMs allow users to sell Bitcoin for cash or purchase Bitcoin with cash. This is a pretty straightforward process that makes it easy to convert fiat/crypto.
Exchanges — Convert BTC to Dollars
You can also convert your funds into dollars using cryptocurrency exchanges. These exchanges are linked directly to your bank account.
Wallets Created — Steady Growth: 40M!
To date, 40 million wallets have been created, which is a 400% increase over the past 3 years. Industry experts expect the number of wallets that have participated in a transaction to reach 1B by 2030 which is a growth of 2500%.
Volume — Amount Sent or Spent or Traded
BTC Volume is the amount sent, spent, or traded. Industry experts say that 2/3 of volume can be attributed directly to trading, although I believe this to be a bit higher. In 2017, the daily volume of BTC wavered between $100M to $1B USD. Now, three years later the daily volume of Bitcoin is $18 to 44 Billion. This is a minimum increase of 1,800% and a maximum increase of 44,000% in volume.
For the sake of understanding the price of bitcoin over the long haul lets break BTC price into two groups:
1. Actual price: Essentially, the exchange rate of 1 BTC to another currency. Since the supply of BTC is limited, increased demand will make BTC more expensive. Here, demand is driven by the number of people using bitcoin for sending, receiving, and exchanging, and the demand can be viewed as the adoption of cryptocurrency as a whole. The facts mentioned above all affect the actual price of Bitcoin. The actual price has been steadily climbing over time and will continue to do so. Just look at the historical price lows over time. I believe the historical low is a great and conservative indicator of its actual value as a currency.
2. Inflated Price: Or the hype surrounding Bitcoin where the price is not true to its value as a currency. This is why Bitcoin has a tendency to have price explosions every few years. These explosions represent the hype, but not the value. People bet on the future price of the cryptocurrency, which in turn, drives up the price. I believe that the real inflated price can be viewed by looking at the yearly highs of bitcoin, and the hype is still there.
Taking the highs and lows into consideration: the hype is there and the underlying value is there. I expect the next inflated price to drive the actual price permanently into the 5 digit range. Following this, the value of Bitcoin will continue to grow slow and steady from there.
With this, I suggest purchasing bitcoins and keeping it for some time, and let the value of it grow with the overall adoption of Bitcoin throughout the 2020s. The market is prepping for widespread usage and adoption. Similar to that of how the internet came to be the giant it is now. One day owning a whole Bitcoin will be even rarer than it is now. It’s only a matter of time before purchasing one outright will be unfeasible for 99% of the world. So, purchase a whole Bitcoin, and HODL before you can’t.