The Future of Bitcoin
The Digital currency Group, a company that was founded and managed by Barry Silbert currently held a day in California where companies could give a demo on bitcoin and block chain space. In May 2015 a company BCG, responsible for Bitcoin investment trust started its trading on the OTCOX under the ticker “GBTC”. During this event Silbert gave a presentation in which he discussed his predictions regarding Bitcoin.
Top Ten predictions:
- Bitcoin re-emerge as a theme
- Bitcoin flywheel effect will begin when its price starts to increase.
- Bitcoin will be traded on Wall street.
- Bitcoin will become competitive in cross border payments.
- Bitcoin will grow in Brazil, China and Middle East.
- Bitcoin price will go up till 12/31/16.
- Banks will be using digital currencies.
- Industry consolidation will continue.
- Non-financial use cases of block chain ledger explode.
- It will progress slowly in private block chains.
While talking about the bitcoin currency, Silbert showed very positive attitude. He said that bitcoin price will be higher. He proposed two scenarios while discussing the bitcoin future during a conference on Bitcoin in New York City in April that either the price would be higher or it would be more that it was at the previous time.
According to Silbert, the price would not reach $230. His predictions basically were focused on around three main points. As the currency/store of value theme re-emerged, the price would start to increase, which would result in the flywheel effect. Since a wheel turns, it can easily gain more momentum, resulting in further turning. The fear of capital controls in China may push bitcoin into such a great bubble that is never seen before said Tyler Durden, the author of the pseudonymous Zero Hedge.
If several millions of Chinese decide to invest a tiny fraction of $22 trillion in bitcoin whose last market was nearly $3 trillion – the results may considered amazing, we are going to witness a second coming of bitcoin.
Many people say that bitcoin will not make remittance cheaper but Silbert predicted that in 2016 this would enhance the cross border payments/remittance businesses that use bitcoin. However, while remittance might not be ready for disruption, international B2B transactions might be a use case that bitcoin is ripe to change.
“Bitcoin was a no correlated asset” - said Silbert while diving deeper into the finance of bitcoin. According to Investorswords.com no correlated assets are “assets that tend to change in value independent of the core financial markets such as stocks and bonds”.
Silbert remains optimistic regarding bitcoin as an investment. From now on bitcoin entrepreneurs and investors should need to focus on building more products that will incorporate block chain ledger over time and this will make the Bitcoin future brighter.