Not so long ago, the world’s first crypto currency reached $700 over the weekend. This is the highest gain over the last two years. At this point, experts say that this is probably not the end of it and the price may see further advancements over the recent months. Some of them say that the crypto currency may well nit the psychological level of $1000.
Are there any reasons to buy Bitcoin today? Let’s listen to Henry Brade, who is the co-founder of several Bitcoin exchanges. He named several factors in favor of buying Bitcoins.
First off, the currency has now become more stable than ever. It has been relatively stable over the last 18 months, which has definitely been contributing to higher trust coming from the international community of consumers, businessmen and investors.
According to the expert, the currency was even more stable than most of those stock indexes out there over the period. It was even more stable than the Japanese Yen and gold. Mr. Brade says that most of the time, relatively stable assets start appreciating over time. This is exactly what has been happening over the last couple of weeks.
Secondly, the global economy is currently subject to a number of negative trends, which makes investors worry. At the same time, the crypto currency isn’t affected by the situation in stock or currency markets. That’s why the expert assumes that if the global economy collapses, the crypto currency will become even stronger and more popular as a payment means all around the world.
Indeed, the expert predicts another crisis, which is going to be even stronger than the one we saw in 2008 and 2009. Back then, investors used to tread gold and silver as safe-haven assets. This time, they are probably going to consider Bitcoin as anther safe-haven asset as well.
The third factor to keep in mind is that new Bitcoins are being mined much slower than they used to be. If this month, they are going to min some 3600 BTC all around the web, next month it may well be under 2000 BTC. This mining slowdown is built into the code and is subject to a 4-year cycle.
The 4th thing we should keep in mind is that the crypto currency is essentially different from conventional money we are all used to. When it comes to Bitcoin, the money supply is fixed and limited. All in all, altogether we can only mine 21 million BTC. At this point, there is slightly over 15 million BTC circulating through the web. On top of that, more and more people start using Bitcoins as a payment means. Each Bitcoin can be split into 100 000 000 Satoshi.
Today, 1 BTC is worth around $600.
