Bitcoin will have broken new records in 2017, with incredible growth, from € 760 at the beginning of the year to € 5,300 in October. But skeptics like Ray Dalio, hedge fund manager, and Jamie Dimon, CEO of JP Morgan, sniff a "bubble" and a "scam". Other investment experts like Tom Lee, a former director of JP Morgan and a popular Wall Street strategist, believe that the value of Bitcoin will continue to increase, likely to reach € 46,000 within five years.
According to Chris Kline, Co-Founder and COO of Bitcoin IRA, Bitcoin will be the best high yield investment of 2018, going well beyond its tremendous growth in 2017. It explains why in five reasons.
1-The adoption of Bitcoin will explode in 2018
Bitcoin is becoming more common around the globe.
In April 2017, it became an officially recognized payment method in Japan. Today, more than 260,000 stores or restaurants accept this cryptocurrency. The widespread adoption of Japan will serve as an example for other countries. When other governments look at cryptocurrencies, this case law should have a lot of influence.
The volumes traded around the world are also increasing. Transaction volume rose 55% in 2017, with more than 30,000 new portfolios created each day. Persistent rumors indicate that Amazon may soon accept Bitcoin too. If that were the case, the advance of cryptocurrency would become unstoppable.
2-Official surveillance and regulation will flood the institutional money market
In 2018, we can expect a significant increase in the surveillance and regulation of cryptocurrencies and therefore that well-established financial institutions invest billions in this new niche.
ETFs with Bitcoins should be approved by the US Competent Authority (SEC) in 2018. This would allow major financial institutions to start investing in this area, and offer their clients new investment choices. ETFs would open the Bitcoin market to a much larger number of investors, who are now uncomfortable with the purchase and secure storage of this currency.
In addition to ETFs, the recent LedgerX platform is now available to exchange options. It is registered both as an exchange platform and as a futures contract provider. tZero, a subsidiary of Overstock.com, has also recently obtained the necessary authorizations in the United States to offer an alternative trading system for blockchain assets.
Finally, CME Group, a strategic partner of BitGo, has announced its intention to offer Bitcoin futures in the last quarter of 2017. The growth of Bitcoin derivatives is a new step towards its establishment as a currency. CME Group, a leader in futures and options trading, is the latest to offer Bitcoin derivatives.
These new companies, with their governmental authorizations, represent the beginning of a broader movement towards a regulation and a security of exchanges that allow the biggest financial organizations to take the plunge.
3-The break of the status quo continues
Technologies like Uber, Airbnb and Alibaba have upset important sectors almost overnight, and Bitcoin is about to do the same with the monetary system.
The blockchain technology on which Bitcoin is based is revolutionary and is growing rapidly. There are now more than 1,200 new cryptocurrencies available on the market that seek to solve problems through technology.
Ripple (XRP) will completely change the way transactions go from one country to another. Instead of fighting blockchains, banks are starting to work with Ripple to build a new, more transparent system. In the same revolutionary vein, Civic currency uses blockchains to verify and protect the identities of businesses and individuals. Civic gives power to individuals to protect their identity.
And that's just the beginning.
4-We're wary of Wall Street: Blockchains are the new Messiah
The world has not forgotten the subprimes that led to the financial crisis of 2008. We all watched, incredulously, how our taxes were used to save the banks that were responsible for this collapse of the markets. JP Morgan has received $ 13 billion in bailouts, and Wells Fargo has more recently created a large-scale fraud of false accounts on behalf of their clients to artificially boost their stock market value.
Financial institutions can no longer trust Wall Street.
Bitcoin was developed in 2009 after these bad practices and the crisis that followed. At the time, transferring funds between parties required an intermediary, that is, a bank or a broker. With Bitcoin, on the other hand, and its new blockchain technology, this intermediary was removed, and there was a way to transfer money safely directly from one individual to another. It is a transparent model, and bypasses the inevitable taxes or systematic failures of traditional banks.
As more companies recognize the applications of Bitcoin, we should see a profound paradigm shift in the financial landscape. Rules that had lasted decades, if not centuries, should change.
5-The accessibility of Bitcoin will greatly increase
At the beginning of Bitcoin, it was only a monetary system of exchanges between individuals, and it took a lot of work, industrial and technological, to find how to buy and store Bitcoin in a safe way.
Today, sites like Coinbase.com have made Bitcoin easy to use and access for all. These sites offer a one-stop shop for cryptocurrency: you can easily buy, sell, exchange or store.
Major retailers, such as Overstock and Expedia, are now accepting Bitcoin as a means of payment, and several countries around the world have begun to open Bitcoin exchanges and accept it as official currency. The company BitcoinIRA.com allows investors to store Bitcoins on their savings accounts.
These five reasons thus represent a major turning point for Bitcoin in 2018, and enterprising investors, willing to bet on high volatility and accept risks, will see their earnings explode.