Imagine an investment that could make you into a millionaire in a single decade from a current investment of around $4,000. Granted a million dollars will not be worth what it is today – but it is still a very impressive rate of return. But that’s not the whole story.
This investment is in the cryptocurrency Bitcoin.
Wences Casares, one of the board members of Paypal and CEO of one of the largest Bitcoin wallets has made the $1m prediction at a cryptocurrency convention.
There is widespread acceptance that the meteoric rise in the value of Bitcoin is not merely a flash in the pan. Bitcoin (as from a few stutters) has continued to show enormous growth in value. And some of the most respected banks in the world have made predictions about that growth that have proved if anything too conservative.
A Danish bank document looking into the future at the end of 2016 said that the currency would hit the $2,000 mark in 2017 – this was when it was trading at the $750 level. It hit that $2k mark in May of 2017 and has shown no sign of slowing. In September (as of the time of writing) it has just surpassed the $4,000 mark. there are very few investments that can match this sort of growth.
But potential investors want to know just how safe their investment would be. Well, as with any investment the rule of thumb is never to invest more than you can afford to lose – and the same is true of Bitcoin. It has shown periods of extremely volatile trading in the past – and it will probably show them again. And governments are not happy about a currency that is at its heart ungovernable. For central banks, the idea that there is a currency out there that they cannot control with an iron fist makes them extremely uncomfortable.
But the fact of the matter is this. With increased retail activity taking place on the Internet there is now an urgent need for a currency that is secure – credit cards and debit cards were not designed for that environment and are becoming increasingly subject to attacks by hackers. The card details and personal details of users are being hijacked at increasing rates. The way that Bitcoin is structured reduces this risk considerably.
Also counting for the currency is the fact that it is essentially inflation proof. The upper limit for Bitcoin production is 21 million. After that, it stops. There can be no more made, making it not subject to the practice by central banks of printing more money to make up for shortfalls.
With more and more merchants accepting Bitcoin and what seems to be geometric growth in value 2017 may very well present investors with the last time that the cryptocurrency is an exceptional value for money investment choice. The time to buy into what may very well be the future of currency might just be today.