First post in a Trilogy
While other currencies are going up and down about 3% – 15% a year, I’m very excited to introduce you to my new investment, which in the past year has gained over 400%.
Instead of explaining what Bitcoin is, checkout this cool video:
Gains are not for nothing
The supply of Bitcoins is limited, unlike regular currencies which can be printed by national banks whenever they decide to do so. We can see this happening now with all the quantitative easing performed by central banks around the world. Currently there are about 10.8 million Bitcoins and this number will gradually increase to 21 million in 2140. Yes, that’s right, 2140.
The U.S. dollar value of a Bitcoin is about $45 today compared to just $5 a year ago. In the last three months Bitcoins gained over 200% since at the end of 2012 the quoted price was $13.48.
You can trade Bitcoins just like any other currency or instrument and when you want to withdraw money from your investment you just sell them for dollars. Or even better, you don’t have to exchange Bitcoins to dollars as already today you can pay straight with Bitcoins for your shopping!
There are risks of investing in the currency as it is very volatile and the future of BTC is still not 100% clear, but we will get to that in the next chapter of this series.
This is the Future
Bitcoins acceptance by standard shops around the world is growing and you can now pay in places like WordPress, Reddit, Megaupload or simply buy clothes, outdoor equipment etc. Just search the web for how many shops are already accepting Bitcoins and see for yourself! We expect a growing number of businesses to accept Bitcoins for their goods and services as the popularity of Bitcoins is growing every day.
From a technical perspective the virtual currency has been on a significant rally since the beginning of the year. Prices have continued to move upwards making new highs which is confirmed by the relative strength index, which is above 70, indicating that the currency is in bullish territory. It’s hard to go wrong with such a clear demand and with limited BTC supply.
To summarize:
This is the future of money as we know it. Just as virtual services have replaced many services that used to be offline (financial investment comes to mind), the door has been opened for virtual currencies to take over the national currencies we know today.
What do you think of Bitcoins? Have you ever used them to trade or to purchase anything? Share your experiences in the comments.
Until next time,
Amos