Bitcoin $5000 valuation is coming!
Since my last post in January about the Bitcoin of how it would perform this year. I knew it was going to grow in value but to be honest I didn’t expect that it would grew in value this hard. At the moment of writing this blog, Bitcoin is currently traded at 2395 USD.
So what has happend? Since the legalisation of Japan on Bitcoin and having more countries taking a interest in Bitcoin. The volume of demand for Bitcoin have increased rapidly. Like madness. Here take a look at these graphs.
Why is the demand increasing? | Bitcoin $5000
- Central Banks are increasing interest rate again. When interest rate increased then it means you hard earned money will decrease in value as good and services are increasing in price. That is why clients of investment firms, hedgefunds, institutional investors are investing big in Bitcoins. They don’t want that their wealth be decreased in value just because the goverment messed things up like India last year.
- Bitcoin is getting more and more accepted around the world. More merchants and consumers are starting use Bitcoin as way to buy things. Since the legalisation of Bitcoin in Japan, the trade volume in Bitcoin went sky high.
- Because of Bitcoin price increase, investors are interest in investing in alt coins such as Ethereum. And for investors to invest in most of these alt coins they need Bitcoin. This way Bitcoins are still needed. In order to buy other crypto currencies you will need Bitcoins
This year there was a major growth in merchants that accepted Bitcoins as payment. Now why would they do that? For me it obvious that more and more customers are wanting to pay their products/ services in Bitcoin or any other crypto currency. Japan for example is going to have more then 260.000 stores that are going to accept Bitcoins and Ethereum as payment this summer. The whole bitcoin fever is huge! South Korea, Russia, Thailand are all currently looking if they are going to legalize bitcoins or not.
So why is it so huge? Why are people using bitcoins instead of the old cash? People are using bitcoins for a lot of different reasons. We think that the number one reason that people are using Bitcoin or are investing in Bitcoin, is that they are fed up with politics and central banks for manipulating the currencies to their disadvantages.
Like for example in Europe. The ECB is doing their best to make the European economy better. With the tools they are using it has some side effect. One of the effect is a low interest rate. Some banks are struggling to make a decent profit. So they lower their cost by firing people and decrease the interest rate. Which means that people are getting less interest on their savings account.
For some people the interest rate that they used to receive for saving their money on the bank went negative. Which means that for every pound that you are saving. You will have to pay the bank to have your money at their bank.
Kinda weird though since most of these banks were saved by your tax money. The ECB is not the only one. Almost all central banks around the world are trying to boost their countries economy. With the side effect of making things more expensive for the normal people while their money becomes less valuable. And the richer became richer and richer. It’s not fair right? To get justice for the normal hard working citizens, Bitcoin was brought to life. The same applies for other crypto currencies.
Users| Bitcoin $5000
While more people are using Bitcoins to pay. The mainstream public are not using Bitcoins to pay right now at the moment. Because they don’t know what the real value of Bitcoin is.( Because all what the mainstream media does is informing how insane it is that Bitcoin and other crypto currencies became so much worth!). But we think that in time the mainstream public will slowly get to know about what the real value of crypto currencies are. We think that the majority that are using Bitcoins right now are merchants. Why? Because with Bitcoins merchants can get more advantages if they play it smart. Because with Bitcoins you don’t need anyone to make a transaction. So this means that the merchants doesn’t to have pay a transaction fee to the banks or to any other middleman. This way it will save them money.
And another thing is that merchants have to worry less about the value of the other currencies if they are doing business international. Both parties can just agree upon a fixed Bitcoin price. So you don’t have to worry about that your profit might decrease because the GBP has become too expensive or too cheap in comparison with other currencies.
Bitcoin $5000 USD valuation this year?
With huge growth of start up companies that are active in the crypto currency world. Mainly in Bitcoin and Ethereum, it will be just a matter of time before the mainstream public will start to use Bitcoins and other crypto currencies types. On the short term there are countries like Russia, South Korea, Thailand, Australian, who are planning or looking into legalizing Bitcoin. And with gold rush that big investors and investment funds are having for crypto currencies, we think that there is a good chance that Bitcoin $5000 USD value will happen this year.