Google was created in 1996 and nothing has happened now to be worth 564,000 million dollars. Facebook was born in 2004 and has spent 0 capitalize Millions $ 394,000. And the Bitcoin was created in 2009 and now capitalizes $ 19,000 million.
It is not that putting it in perspective, does not seem so exaggerated the increase in value of Bitcoin?
Bill Gates has a net worth of $ 75.000 million after creating Microsoft, Amancio Ortega 67,000 million being the founder of Inditex. What heritage is currently the creator of Bitcoin? $ 1.100 million. I think little when I think Bitcoin born with Blockchain technology, something that I think many times more powerful than Microsoft and Inditex offers.
What is Blockchain?It is a new technology that will likely revolutionize the global financial system, and many other sectors. It is said that investing in blockchain today is like investing in internet in 1990. In fact, Microsoft has already partnered with ethereum and Google, Yahoo and Linkedin, among others, are investing in startups blockchain.
This technology enables transactions securely, reliably and irreversibly, without intermediaries. Transactions are impossible to falsify or delete. The interesting thing is that these transactions are not only monetary but covers almost everything imaginable. (IoT, logistics, stock markets, cloud storage, identity management (will replace usernames and passwords), registration and verification of data (medical records, copyrights), collaborative economies (crowdfunding), feedback, market energy (electricity ), media, military, etc …)
Y .. How big is the market for Bitcoin?
Again, I think the Bitcoin capitalizes little what it is. I find it “strange” that a person like Bill Gates could buy all the Bitcoins that exist with a quarter of its assets.
Out of curiosity, if we assume that 1% of the money will be in Bitcoins, price should be: 81,000 trillion x 1% / 21 million (Max Bitcoins in circulation). In this case the result gives us something more than 38.000 €.
Also note that on 11 March , the SEC could approve ETFs on Bitcoin. If so, first they enter many millions in these funds to be invested in Bitcoins. On the other hand, many institutions would rather invest part of their portfolio in Bitcoins (now would be a more reliable asset), and many of them would take positions with the idea of diversifying the portfolio and have some active uncorrelated with others.
Technology Adoption Curve
I think Bitcoin is under “early followers” of this curve. It is at this stage that any new technology to hackers and government regulations faces.
To finish drawing what is missing curve, it is necessary that the Bitcoin runs with a full adoption by most of the population.
The yellow line represents the market share of technology. To start up very slowly but exponentially, which comes a point that rises vertically.
We see below lines market share presented different technologies in the past century. It is seen as increasingly curves are more vertical, which means that you get to the masses in less time. (While the phone took 75 years to be used by 90% of the population, mobile took 15 years).
It is normal for the Bitcoin now is so volatile, because although it does not seem viewing the picture (in the early years it seems that the curve is flat before climbing hard), the truth is that all technologies at its inception were, and If we view the graph with logarithmic scale, we would see the change.
In fact, it already bears the Bitcoin history, and this phenomenon can be seen:
On the left the graphic as commonly displayed. It seems that before 2013 not much happened. But if we visualize with logarithmic scale, as I think you should do, we see the higher yields were obtained in this initial period.
In fact, if we look at the history chart, adding the year 2011 in the above chart, we see as it was then the biggest rise of all:
The price of Bitcoin moves in a repetitive manner over the months and years. When the price takes some time climbing slowly but steadily and exponentially, there comes a day that begins to rise vertically (reaching up more than 1,000%). Then the low price forcefully and then back up slowly ..
I noticed that when the peaks occurred were times when the media gave Bitcoin holders and there was much talk about it. Now I had the feeling that few spoke of Bitcoin, so I wanted to compare the price of Bitcoin with the number of Google searches for the word “Bitcoin”
Sure enough, when there was a very sharp increase in Google searches in, corresponded with a peak price Bitcoin. Now we see that this does not happen, which could indicate that the price should experience again a strong rise again to be much interest.
For lovers of Bitcoin, I leave a possible price projection:
Comment our portfolios Advanced incorporate the ability to invest in Bitcoins (limit investment in Bitcoins to 2.5% of the portfolio in the risky profile due to its volatility and risk).
Nobody knows what Bitcoin will be worth in the future, but I think it’s likely to continue rising. Now, up to one million, no.
And it is that although in the future single currency with Blockchain technology is used (which thing I think) does not mean that the Bitcoin is used. It could be that dominate another improved currency, and simply, each country had its own crypto-currency or even companies with their own criptodivisa (Amazon , for example).
So I see it as an asset to have in portfolio and $ 1,000 think continurá up, but as much as the title of this post, no. In fact, since a few weeks and my exposure is ethereum instead of Bitcoin, because I think eventually surpassing the Bitcoin ethereum though it is now far ago.
Good, since the publication of this article until today, June 14, 2017, has greatly raised the price of this cryptocurrency. Possible bubble?
there will be strong volatility and downs along the way, but I think it will continue to rise. Although it has already done quite as you say, if we compare the Bitcoin market with other financial markets, we see that is still very small. As an example, all bitcoins in circulation today are worth $ 45 trillion. Bill Gates now has a fortune of 86 Trillion. In other words, for comparison it is understood that although it has risen sharply the Bitcoin, when compared to the valuation of companies (now Apple is worth 760 trillion 250bn in cash) or personal fortunes, it is understood that there is much potential for the btc continue to rise.
But I think with some certainty that will be the cryptocurrency number 1 will be ethereum instead of Bitcoin. I think it’s a matter of very little time for ethereum is the most valuable (the most capitalized). In fact I see the bitcoin as a currency and the ethereum as raw material.
Thank you for your answer, so fast, but do not understand what you mean as a raw material regarding ethereum.
Could you qualify it ?
Yeah right. The ethereum be used to create millions of businesses. By ejemlo, create an Airbnb decentralized where diractamente users to contact without an intermediary, or Uber taxi drivers negotiate directly with customers, artists who can sell directly their works, etc .. therefore all be created with ethereum (smart contracts). In fact all sectors will be revolutionized. So for this reason I see it as raw material, because like oil is claimed to run many businesses in the near future demanaran many ethers by the fact build on their blockchain. That is, demand will not be for much ethers purpose currency (transmit monetary value) but will also be used as such … but to create “anything” with blockchain tecnlología. By the way, if you’re in Barcelona I will give a talk on the topic on June 29 at 19pm in Catalonia Plaça Catalunya hotel. I in Madrid on June 27 at 19h at the Bar Centro de Atocha.
Thank you very much for your clarification-very instructive regarding your chats gets me something away (Cádiz).
brilliant article Adriá. A pity not to have heard before about your talk in Madrid, he would have attended without hesitation