Bitcoin is currently establishing support at just over $7k USD. In terms of market value Bitcoin is up over 500% sine January, and has outperformed almost every state-issued currency and traditional commodity worldwide.
Bitcoin’s decentralized and censorship-resistant features have gained in popularity around the world this year in Venezuela, Zimbabwe, South Korea, Japan, India and in many other regions.
Citizens in these areas are taking advantage of Bitcoin to escape capital controls, hyper-inflation, etc.
We’ve seen Bitcoin’s resilience against China’s draconian counter pressure, Drive-by media punditry from the likes of Jamie Dimon, and other agenda or ignorance driven fear mongering.
The simple truth of the matter is that despite all the FUD (Fear, Uncertainty and Doubt) Bitcoin continues to be the honey-badger of money.
Rather than being a bubble or tulip-mania the meteoric rise of Bitcoin is based on the elementary math of market demand meeting a limited supply.
Remember, there will only ever be 21 Million Bitcoins minted. Never before in history has there been a store of wealth with so much utility.
As we speak billions of dollars are being allocated in major enterprise infrastructure to support transacting in Bitcoin and other cryptocurrencies.
So far we are only discussing the meta on this topic. The game changer which makes Bitcoin under $10k a bargain is the recent announcement that the CME will begin offering futures contracts for Bitcoin beginning later this month.
All of the factors that have played into Bitcoin arriving at $7k have been based on a user adoption rate that is unbelievably small.
For years the Bitcoin community have discussed the topic of mainstream adoption and how that might happen. I think we are looking at it right now.
CME is about to bring unprecedented legitimacy
to Bitcoin. This combined with further enterprise and institutional adoption trajectories puts us at the beginning of widespread adoption starting in 2018.
Despite the recent rise in price and increasing awareness around Bitcoin, blockchain tech and cryptocurrency, the fact is that we are still at early, early adopter stage.
Once mainstream adoption really gets going and we take into consideration the supply and demand equation it’s reasonable to see Bitcoin going to 5-10x market cap by this time next year.
Obviously there is no crystal ball here and Bitcoin may correct 5-10% in the near term but historically when Bitcoin corrects it achieves a new all time high shortly afterward and that pattern has been driven by a very small percentage of the population.
I believe we are on the cusp of Bitcoin’s big breakout coming into 2018.
In my next article I will provide a very simple primer on how to acquire Bitcoin safely and with minimal effort or technical knowledge.