Imagine that you were one of the first miners to strike gold in California before it became known as the great American gold rush. You sold your property, mortgaged your home, and took a gamble on promises of wealth of the kind you had only ever dreamed. You invested physical effort and time to haul the element out. But before everyone else, you realize the amount of wealth that lies beneath the ground is finite. Only the front-runners, those willing to take on the risk in a leap of faith stand to profit ahead of the game. This is very similar where the idea of Bitcoin comes from, it is rare and not easily mined. Since 2009 it has become a store of value, rising in value from a fraction of a cent to recently a high of $20,000 per Bitcoin!
Then consider the number of people that followed behind you. As more people heard of the wealth of gold in the land, more people came to start digging. They invested just as much, maybe more, but the available resources began to decline. With the increasing demand, the value of gold kept going up, until all those veins of shiny ore had been dug out, the source dried up.
Demand remained high as gold ruled supreme, and you and the few others who got ahead of the game are the ones who rest easy on their investments. The rest of the masses, the latecomers and non-believers are left to scrabble over what little remains or miss out completely.
Now it’s time to realize that history is about to repeat itself. Only this time the wealth lies in Bitcoin, not gold.
Less than 1% Have Bitcoin
Currently, less than one percent of the world is holding Bitcoins. This is the beginning of the cryptocurrency rush. There are many other coins out there that are jockeying for position in the lead. But at this point, Bitcoin heads the front lines.
There are 21 million Bitcoins that will ever exist. A small percentage are still waiting to be mined over the next 100 years and enter the world of commerce. Even accounting for those that are waiting to be mined, there are nowhere near enough for the 7.5 billion people in the world to hold an entire coin at any price.
Single Bitcoin Value Today
Since its creation back in 2009, the value of Bitcoin has risen some 39,999,899%. Today a single coin is worth roughly $8000. Now, as more people buy into the cryptocurrency market, the demand is going to go up. But supply will remain constant, which in turn will drive up the value of each Bitcoin.
In Jan of 2017, a single Bitcoin was sitting at $997; today that same coin is now $8000.
Imagine that you knew everything you know now eight years ago. You had the foresight or were willing to take the risk of investing in Bitcoin from the beginning. Even if you decided to wait a year after its inception, and chose to purchase 1000 coins at around $0.01 each, you would have only had to invest about $10! Today, less than seven years later, that investment would be sitting at around $5,000,000!
Now, if history is any indication of the way things will go, many more people are going to want to buy into Bitcoin with each passing year. It’s already been determined that there is a finite supply (of 21 million Bitcoins). So even if only 1 billion people eventually want to buy in, the price and gains on your investment have nowhere to go but up.
We believe there is still a lot of upside in the price of Bitcoin. However, the world is shifting into Crypto Currencies, we do not see this as a bubble.
More questions about Bitcoin? Feel free to contact us here.