Over the course of a year, BTC (BitCoin) has surged from $700.00 per share to numbers around $19,000.00. The new Cryptocurrency has been described as a “Neo-Nazi” money hole by some because of the large backing on social media outlets like Twitter, and boards like 4chan by the “Alt-Right” Pro Trump supporters. The real problem with Bitcoin is finding a source that will tell you exactly what Bitcoin is being used for as well as what the future of the new Cryptocurrency looks like.
Never has a currency skyrocketed the way Bitcoin has in less than a year and this has left many skeptical – including publications like Mother Jones siting Bitcoins effect on the environment & Wired attributing its negative effects on global warming. Although some are siting outside effects as to why Bitcoin is bad, many are skeptical simply because the “bubble” is like a “game of roulette” – that could leave many people investing a lot of money without seeing an actual return.
The main speculation seems to be that Bitcoin will never be traded on the stock market, leaving it as a commodity with no liquidable attributes, and will only hold value for as long as the hype continues. Although Bitcoin is not traded on the stock market, there are a number large companies that now accept bitcoin as payment. Some of those Include:
- Dish Network – An American direct-broadcast satellite service provider
- Microsoft – Users can buy content with Bitcoin on Xbox and Windows store
- Multiple Airlines/Travel Booking Agencies (Virgin Galactic, CheapAir.com, Expedia.com, Webjet)
- Whole Foods
- LionsGate Films
- Gyft (Gift card purchaser)
“In September, the FBI shut down the Silk Road online drug marketplace, and it started seizing bitcoins belonging to the Dread Pirate Roberts — the operator of the illicit online marketplace, who they say is an American man named Ross Ulbricht.” – Wired
Understanding the reason for the Bitcoin surge is easy when you look at the timeline of its skyrocket. Prior to the FBI’s 2012 September raid on Silk Road which lead to confiscation of the largest Bitcoin wallet (140,000+ Bitcoins), BTC was being traded with a value of $10.00. By April of 2013 Bitcoin would make it first surge to a value of over $100.00. During 2014 it would make its first surge to a value of $1000.00 which was likely a test of the known currency to blackmarkets. It would eventually go dormant from 2015 to mid 2016 at numbers ranging between $200.00-$400.00. At the start of the 2016 presidential elections Bitcoin began to show up on social media sites and main stream media, informing people of the lucrative currency that was valued around $600.00. From September of 2016- December 2017 the Currency has shown an abnormal amount of Growth (3000%). This can be attributed to people within the FBI controlling the value of the currency which is holds the largest amount of.
The question is why you should care about any of this information.
Many cite the need for Bitcoin’s “bubble” to pop. This is common in all stocks, where the value eventually regulates itself, but the difference with bitcoin is it is not a conventional stock. With the government holding the largest percentage of Bitcoin they can regulate it as they see fit, and even if the price drops to $20.00 they still have a 200% increase in value. Why this is important is because, if/when BTC becomes tradable on the New York Stock Exchange, the money will then become fully liquidable, meaning the companies and people who have invested before the boom will be able to cash in, or purchase stocks of other companies. What this would do to the stock market has yet to be discussed in depth. Since the hype began a number of venture capitalists and professional investors have “bought into the Bitcoin craze”.
At its price right now Bitcoin is not a good investment, in terms of using actual money for the purchase of the currency. What has become popular as stated above is sale of a service or product for Bitcoin currency. I would expect other large companies or billionaires to invest in the next drop, as they have safety-nets to keep them from loosing an extremely large amount of money. These large companies and Billionaires who invest also can control minimal fluctuation of the value of BTC.
If you have a small business or are interested in joining the Bitcoin craze, I would suggest making the currency an available option on your online website or in store through online transactions. Just know at the end of the day, people claiming Bitcoin is part of a revolutionary concept where the central banks are not controlling the value of their dollar, are trading that for the FBI and government still controlling the value of Bitcoin, and it will always be that way.
I personally think that by supporting Bitcoin you are helping the deep state become even more wealthy and powerful than they already are, but if you’re looking to get rich quick and have the money to do it, who am I to stop or criticize you, just make sure you have a back up plan.
The future points to online currency, implantable chips, or devices that connect a persons wealth to body, making you the property of the government. To me this is just the beginning of the slippery slope that is government controlled online currency, once your wealth is completely online, with government control of transactions, stopping someone from being able to purchase items will become a breeze. Also following the transaction data of a specific person will be as simple as looking up the person in a government database, all scary stuff when looking at what the future holds for cryptocurrency seeing that Bitcoin is just the trial run.