Bitcoin is About to Explode
Unbeknownst to most investors, Bitcoin spent the last month fighting for its life.
For those of you unfamiliar with Bitcoin, it's a landmark digital asset that catapulted past the value of gold earlier this year.
It's also arguably one of the most profitable investments in human history, making investors upwards of five-digit gains.
But in the past month, Bitcoin’s future was draped in uncertainty.
The digital coin plummeted from an all-time high of $2,955 in June to $1,850 on July 15th.
But now — because of one momentous change — Bitcoin could launch to a never-before-seen high.
You see, Bitcoin was dropping because its entire future was hinged on a single decision — a decision that was scheduled to take place August 1st.
Now that decision has arrived early, positioning Bitcoin on the precipice of meteoric growth.
And with the last wall between Bitcoin and long-term growth about to fall, investors are rushing to get in.
All of this means we could see the $10,000 Bitcoin some analysts predicted sooner than expected.
If you want to make profits on Bitcoin, now is the time to start paying attention.
Bitcoin’s Role as a Global Asset
It’s no secret that Bitcoin is rapidly becoming the most profitable investment in human history.
If you’d invested a mere $100 in 2010, you would be worth $75 million.
As unbelievable as that may be. It’s true.
And those profits are still available — Bitcoin is up over 300% since 2016.
That said, Bitcoin — and the rest of the digital currency market — remains murky to many investors.
Well, despite the tantalizing profits, many investors are wary of Bitcoin.
Most importantly, they don’t understand the technology powering the digital asset.
But the truth is you don’t need to understand Bitcoin to understand its profit potential.
All you need to know is this...
Bitcoin, despite its relative infancy, behaves like a classic store of wealth that everyone already understands: gold.
The only true difference between Bitcoin and gold is that Bitcoin operates using coding language. Other than that, it was designed with the same unique traits that make gold an economic powerhouse.
This allows Bitcoin to meet the needs of our modern global economy.
Just take a look:
- Bitcoin is Finite: There can only be so much Bitcoin in circulation.
- Bitcoin is Secure: Bitcoin cannot be altered, modified, or forged.
- Bitcoin is Independent: People can use Bitcoin without government interference. Bitcoin is not influenced by the dollar or other currencies.
These traits have allowed Bitcoin to balloon as stock markets crash and our global community experiences political turbulence.
Like gold, Bitcoin provides a hedge against financial uncertainty and global financial turbulence, making it a good choice for investors trying to protect and grow their savings.
And, when it comes to value, Bitcoin is just getting started.
Top venture capitalist Tim Draper expects we will see $10,000 Bitcoin by 2018.
With this kind of potential, it’s no mystery that one MarketWatch writer calls Bitcoin “The best investment in my retirement account.”
But recently, Bitcoin’s long-term value has been put in question.
As the world’s first digital currency, Bitcoin has some issues that need to be hammered out before it can reach such lofty valuations.
One of these problems is so big that if Bitcoin doesn’t overcome it, it will perish.
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The Big Problem
Bitcoin’s main problem is one that affects many new assets or businesses: Bitcoin can’t keep up with demand.
In recent years, Bitcoin has skyrocketed in popularity.
This higher adoption rate is good for Bitcoin’s long-term growth, but in the short term, it has stalled the digital currency’s value.
With so many people adopting Bitcoin, the network has to keep up with increased transaction volume.
This means the developers committed to maintaining Bitcoin need to make adjustments for the digital currency to move forward.
They started looking for a solution. In the end, they found two.
One of these solutions could have reduced the value of Bitcoin to pennies...
And just the knowledge that this option existed sent the digital currency market into panic. That’s why Bitcoin’s value dropped so sharply over the course of June and July. Some investors simply weren't willing to take the risk.
But now, the Bitcoin community has decided on a path to take... and it could send Bitcoin’s value soaring.
Narrowly Escaping the Noose
As I said above, the developers that maintain Bitcoin were left with two options.
Both of these options are fairly technical, so I have simplified them for you below.
Option One: This option would allow small modifications to Bitcoin’s code, removing the issues. (This option is technically called SegWit.)
Option Two: This option would drastically alter Bitcoin immediately, remedying the issues. It could also potentially create chaos in the Bitcoin network, if the Bitcoin community does not agree on that course of action.
Obviously, the somewhat violent nature of “Option Two” alarmed many investors.
With the possibility of such turbulence on the horizon, many investors chose to sell in the last month, dropping Bitcoin’s price to $1,850.
But now, they don’t have to worry about it.
On July 20th, the Bitcoin community decided to forego both option one and option two, combining them into a compromise that will protect Bitcoin.
That means in the short term, option one will be implemented, with option two following sometime in the future. This leaves Bitcoin in a far more stable place than it has occupied in past months.
And that added security has sent Bitcoin investors into a frenzy. Since news that a compromise has been reached, the digital currency is up by 28%.
With the favorable solution imminent, Bitcoin has narrowly escaped the noose. The digital currency is free to start pushing toward analysts' $10,000 valuation.
At the very least, this solution has put a halt to the recent Bitcoin bear market.
Even if Bitcoin doesn’t reach some lofty analyst expectations, with this major hurdle behind it, the digital currency is poised to soar.
Of course, we know investing in Bitcoin isn’t as straightforward as other assets like stocks.
That's why we've put together a digital currency investing guide for investors looking to capitalize on Bitcoin and other digital assets.
@AlexandraPerryC on Twitter
Alexandra Perry is a contributing analyst for Wealth Daily and Energy and Capital. She has multiple years of experience working with startup companies, primarily focusing on artificial intelligence, cybersecurity, alternative energy, and biotech. Her take on investing is simple: a new age of investor can make monumental returns by investing in emerging industries and foundational startup ventures.
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