Here Are The Top 5 Reasons Why Bitcoin Price Will Surge- And Surge Hard
It’s not been a great weekend for the cryptocurrency markets; it’s been bloodshed.
Bitcoin has seen its price drop nearly 2% from $13,155 on July 10, to $10,126 as of writing this article. Ethereum has particularly been struck, dropping almost 30% from $316 to $222.
The entire cryptocurrency market capitalization has dropped by 22% from $355 billion on July 10 to $277 billion today.
Despite the sea of red currently engulfing the markets, all is not bad. While many people’s portfolio is undoubtedly taking a considerable dive, in the bigger picture Bitcoin and the rest of the cryptocurrency markets will recover from this correction and bounce back- and bounce back hard.
Why is this, well, here are the top five reasons why.
Top 5 Reasons Bitcoin Price Will Surge
Institutional Money is Increasingly Rolling In
Institutions are showing up big-time. Institutional money is here and only increasing by the day. ICE is launching Bakkt, Fidelity’s new platform, Facebook’s Project Libra and NASDAQ is partnering up with various players such as Aris X to launch Bitcoin futures. This doesn’t include all the various hedge and pension funds which have made their plays into Bitcoin.
Bitcoin is Becoming The Chosen Financial Hedge Against Political Uncertainty
Bitcoin price premiums in places like Hong Kong, Iran, and China are substantial compared to more Western countries. At one point trading at a 253% premium in Iran. Not just premiums, but trading volume in these countries but also Venezuela and Turkey are increasing exponentially. As the global trade wars heat up, expect Bitcoin to be among the primary beneficiaries- the world’s number one non-state currency.
Bitcoin is Censorship Resistant
It literally cannot be stopped by any state actor anywhere in the world. Bitcoin does not die. Bitcoin allows individuals to transfer value to anyone, anywhere and anytime, regardless of geographical locations, political affiliations, any sanctions, and any religion or citizenship. There have been many examples of countries confiscating Gold from countries they conflict with- that’s censorship. This does not apply to Bitcoin.
Global Economic Order Right Now is A Mess
Moreover, it’s getting worse. More than 40% of global bonds offer no profit, in fact, the situation with sovereign bonds is becoming so dire, that bondholders who held until bond maturity are receiving less than what they originally paid. The reason why countries like China and Russia are massively dumping countries bonds and buying into Gold is due to the significant Central Banks inability to manage the global economy. The inflationary practices of these banks have led to fiat becoming increasingly worth less and less, whereas the deflationary nature of Bitcoin holds the reverse. The crippling debt levels of major countries also add fuel to the fire, so bad most debt is unlikely to ever be repaid; further making Bitcoin the perfect safe haven.
Bitcoin Bridges The Gap For The Financially Unbanked
There are still billions disconnected from the global financial system due to the lack of basic systemic features such as having bank accounts or the ability to access loans. However, these individuals don’t need bank accounts; they don’t need to be brought into a broken system- they need access to decentralized global money for the age of interconnectedness, for the age of the internet. Their local governments have failed them miserably, with their capital controls and debased fiat currencies. Many of the more powerful nations have used tools of the economic order to keep people on the fringe for their selfish benefits. These people need money, thereby removing the barriers to finance for many of the poorest people and as such potentially adding untold trillions to the global GDP. Bitcoin will enable a new golden age of economic prosperity for these nations and people.
Challenges Remain, But Bright Future Ahead
While the reasons stated above, are entirely plausible and extremely likely to lead Bitcoin to new all-time highs, the obstacles that currently concern Bitcoin and the rest of the cryptocurrencies cannot be ignored.
The rampant exercise of price manipulation, too much power in the hands of too few, exchange security and regulatory clarification remains.
However, Bitcoin is a technology that will remain and continue to thrive, even more so, once the negative actors so strewn into the Bitcoin ecosystem are all removed.
We’re only in the nascent stages of something truly massive.
Featured Image Source: Tyler Kurbat