Quick disclaimer – we all know that this is a ground breaking technology that offers us a chance to actually operate beyond the reach of banks and corporations that may not have our best interest at hearts – it is unlikely that Bitcoin will fail, but given the pervasive stance of governments and banks we can assume they will certainly try to impede the growth of this technology as it undermines their very existence. Thankfully all they can do is slow it down and stifle innovation as opposed to END it – it cannot be destroyed.
Let’s take a step back and see what your bank is offering you? if you have less than $1,000.00 more often than not your bank may actually charge you a nominal fee (0.50c – 5$ per month) to use their facilities. Bitcoin the currency has risen since 2010 from a fledgling 0.05 cent value to a whopping $1,100.00 top (2013)
As you can imagine a lot of people made a considerable amount of wealth during the huge initial catapult – volatility of BTC is expected when a technology is this new. While some people cried about the volatility being a hindrance to them investing a small part of their earnings/savings, others used this ‘wave’ to create even more wealth.
Let’s use today as an example of this theory in motion – When I logged on earlier I was observing the finalization of a property acquisition worth around 2,785 BTC (When it was at that current market value) (BTC stands for Bitcoin)
This was immediately converted to around USD $1.6M using bitpay.com house- this coupled with tech giant Dell converting all BTC payments to USD instantly caused an influx of BTC in the market which pushed a ‘downward’ force in the price as the commodity became less scare in this brief moment. In the span of 2 hours I watched the price of BTC drop to around $525 USD – Lets suppose you had a spare $1,200.00 which you could afford to ‘risk’.
You purchased 2 Bitcoins immediately at $525.00 from the convenience of your own home – no professional wealth management or expensive fees from a stock broker required. About 3 hours later Bitcoin was at $560.00 USD – you decided your appetite for risk was met and you sold your coins.
In the short space of a few hours you turned a stagnant $1,050.00 into $1,120.00 – This is a small example to show you how playing around with this technology could have potentially earned you $70.00 in a few hours (Obviously if you waited for a higher return of say $580-$600 and had $3,000.00 you can see the exponential growth is only limited to your appetite for risk.)
There are people who do this with thousands of bitcoins (as they were very early adopters.) Having said that, this internet currency is in its infancy – though people may have ‘heard’ about it. It is only now becoming acknowledged by massive corporations and smart main stream investors. When world wide adoption of this technology spreads we will be referring to the days when Bitcoin was worth $525.00
Next time someone says “Man bitcoin is too volatile for my liking” just smile and say “I know”. Food for