10 Reasons why Bitcoin will hit $1,000,000

International trade and competition is about mutual benefit exchange, but monopolization leads to profit. The globalization of digital currency will empower the unbanked in developing countries in a way that has never been possible before. Blockchain based decentralized networks will be laughed at, then strongly opposed, then serve as self evident. Bitcoin is just the namespace for the Internet of Money, the blockchain is what has intrinsic value. When people start building and using blockchains the open source verification of anything will be seamless regardless of location in the world. User adoption, merchant adoption, core development and the trasmission and store of virtually any commodity will be a catalyst for the price of Bitcoin.

Read Bitcoin White Paper

1) Bitcoin is extremely undervalued. 

The current market volume of Bitcoin is around 8bn dollars.  Whatsapp sold to Facebook for 19 B in Cash; a quarter of their total cash. Put this into perspective. Bitcoin is an open source  decentralized payment network and currency that has the potential to reach over 5 billion people connected to the internet by 2020; I think that has a little more disruptive potential than a free messaging application.

2)     Remittance Markets

Western Union processes remittances between countries via wire transfer. A standard transfer takes 3-5 business days and cost 5 dollars. It expedited transfer take 1-2 days and cost 22 dollars. With the bitcoin protocol sending remittances between borders will be more cost efficient at almost 0% transaction fee, and could take as little as 10 minutes. Sending any amount of money, to any other bitcoin wallet in the world, seamlessly. Any amount of bitcoin can be securely stored in a digital wallet or physical paper wallet for free.

3) Mercant Adoption

For sales transactions with Paypal, they charge 2.9% + 30 cents per transaction. For international sales its 3.9% + fixed fee based on what currency your dealing with. A merchant may not like Bitcoin at first, but in time it will like the margins it gains from it. Overstock.com, TigerDirect.com, Gyft.com, Dell, Microsoft, PayPal(Braintree), Expedia are just a few of the names that accept Bitcoin. Many SMEs are beginning to accept bitcoin as well.

4) Micropayments

Content that is paywalled such as WSJ will be available through micropayments because of Bitcoin. Bitwall offers a paywall to selected content so that consumers can pay a micropayment and see the article without having to get a subscription in fiat currency. There is value in this for the publisher and consumer in that popular articles now can be accessed without paying for a full subscription. Right now, this is not possible because it cost too much process a micropayments paywall in fiat currency. Free education via a platform like Khan Academy, Udacity, Coursera, Codecademy; could be provided in exchange for micropayments to a wifi hotspot. Bitcoin could enable access to educational content for students in developing nations. Changetip and Coinbase will take micropayments viral. Tipping content creators will be a new form of monetization on the web, something not possible with traditional fiat rails.

5) Opensource in Nature

Bitcoin is being developed on a global scale by software engineers in a collaborative effort. It is currently the biggest opensource project. Many different applications are being developed on open source platforms such as Github and Sourceforge. The core sourcecode of Bitcoin is being developed in an opensource effort as well.

6) The Unbanked Population

Developing world populations interest. 5.9 Billion people will have smartphones within the next 5 years. People in China, India, Africa, and Latin America will be able to utilize Bitcoin. Look at MPesa in Africa… great example of mobile digital banking first.

7) Crowdfunding and Microfinance

Bitcoin is an effective means to crowdfund entrepreneurial projects, nonprofit causes, natural disaster aid, a campaign; or any cause really. A simple QR Code can be generated and scanned to bring the user to a URL where they can sign in to their Coinbase account via API, or enter their wallet address and donate a certain amount to the cause. An API with Kickstarter can be programmed seamlessly and it can reach anyone in the world. The Jamaican Bobsled team was donated $33,000 in Dogecoin to fund their Olympic trip to Sochi. Crowd funding via Bitcoin will empower many entrepreneurs in developing nations.

8)   Future applications and assets

Decentralized asset exchanges will revolutionize the way global activity in stocks, bonds, loans, commodities trades, bets, puts, and calls; all will be on a distributed ledger, terms set by computer code and AI. This system will usher in a new age of communication and globalization. Bitcoin is a disruptive technology in that its function becomes more efficient the more users join. The more nodes, the more miners, the more merchants, the more user adoption. Higher value because of its scarcity, and deflation in turn bringing a higher value per coin. Protocols will be built on top of bitcoin to make it better at what it is intended to do.

8)     E-commerce Channels

Bitcoin will enhance e-commerce and enable a leap into global finance for developing nations. For January and February of 2014 the number of transactions per day ranged from 50,000 – 70,000. This number will continue to rise I imagine we will see 100,000 transactions daily by mid 2014. ( reached on Dec 4, 2014, somewhat close)

9)     Mining Transactions

Bitcoin miners are only in the thousands at this point in time. Chip manufactures will make processors that run an OS and mine on a selected network node. This will facilitate the birth of more decentralized protocols that enable people to not only trade scarce assets over their personal apparatus but also mine as well therefore drive user adoption and supporting the network. Miners will also be able to attach transaction fees and this will give incentive after all coins have been released into the market.

10)  Venture Capital Interest

Bitcoin is an enormous technological achievement and it is a lot getting attention; both from critics and some of the top investments firms in Silicon Valley.  Teams of entrepreneurs and developers around the world are working to build on top of this protocol, solves its enterprise problems, and mold it into it ultimate purposiveness. $10,000 per Bitcoin seems like a stretch, but some executives believe the price could go up to as much as $100,000. over 400 million in VC was invested into Bitcoin companies in 2014.

Ultimately, Bitcoin fits the purpose of a global digital currency, transaction ledger, store of value and payment network. It is Gold 2.0. 

 

2 thoughts on “10 Reasons why Bitcoin will hit $1,000,000

  1. Pingback: 2015 | Dom Steil

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