Why does the price of bitcoin almost quadruple the price of gold?

in #bitcoin7 years ago

Did you know that in 2009 you could buy 5,000 bitcoins for less than $24?

When the cryptomoney was born, no one projected a good future for him. Everyone was wrong.

During the last few days, bitcoin reached its new historic high of $4,700, representing a 500% appreciation in 2017.

You can imagine his next goal is $5,000, right?

But let's not beat around the bush...

The point is: if you had bought 5,000 bitcoins there in 2009, today you would have 23 million dollars in your hands.

Yeah, you'd be a millionaire. I'm sure you regret not knowing that.

What we lost by not buying bitcoins

Let's just say we missed that opportunity in 2009. It doesn't matter. How about we buy $500 worth of bitcoins in 2013?

If we had invested that amount, in less than a year you would have made $42,534, which is equivalent to 84 times your initial investment. No currency has given so much money in human history.

And the gold?

The price of gold is $1,305. Not bad, but bitcoin almost quadruples its value. You can imagine that many investors shouted the cry to heaven when the bitcoin surpassed gold. And that didn't happen long ago. It happened in 2017.

The Cryptomoney business

But why are the cryptomoney coins rising? Can they keep going up? Are they a fashion? Are they a bubble? Do you think bitcoin is the only one that has followed this unbridled uphill road?

No, bitcoin isn't the only kryptomoney that made so much money. In a 32-day period in 2014, another cryptomontage called Ripple rose an incredible 602%. That was enough to transform an initial investment of $500 into more than $3,508.

Another example is Dash, a cryptomontage that many have not heard of, but it turned $500 into more than $8,333 in 30 days, a gain of 1,566%.

Bitcoins in the face of economic collapse

Watch out! Cryptomoney has high volatility.

For that very reason, if you invest part of your capital in cryptomoney, the potential for profit is enormous. Again and again and again, they have demonstrated their incredible ability to turn small investments into real fortunes. And, in addition, cryptomoney, especially bitcoin, serves as "protection against economic collapse".

If you don't believe it, it is enough to look at Venezuela, a country plunged into hyperinflation and the collapse of a controlled economy. As hyperinflation wipes out the value of the bolívar, more and more Venezuelans are turning to cryptomoneda as an established method of income generation. We all know how Argentina is, where the possibility of an economic collapse is always latent.

That's why it's so important to protect our money.

What makes bitcoin so attractive?

  • Does not suffer inflation

  • It's anonymous

  • Help save money

You don't have to be fooled by their current price. He still has a lot to grow up. When the division of bitcoin was known on August 1, the cryptomontage was below $2,800.

The doubts were allayed and the bullish trend returned. Their performance was extraordinary in August and is now at $5,000.

Why does bitcoin go up?

North Korean President Kim Jong-un ordered the launching of a ballistic missile that flew over Japan. It was a signal to the United States. They wouldn't suspend their weapons program. What no one imagined to be the expansive wave of that decision would also shake the bitcoin price.

Many investors have begun to consider bitcoin as an active refuge from market turbulence. But tensions between North Korea and the United States are circumstantial, or at least relatively recent.

The media effect of bitcoin

The bitcoin's media explosion occurred in 2013. Back then, everyone knew the cryptomoney.

Fox, Forbes, Fortune, Bloomberg, CNN, CNBC, Wired, The Washington Post.

And in Argentina, La Nación, Clarín, El Cronista did it.

As the pace of newspaper articles increases, awareness of cryptomoney grows.

Bitcoin triggers

The first potential trigger for cryptomoney is the negative interest rates prevailing in the world. Don't think it's a problem in the developed world. In Argentina, there are negative interest rates when compared to inflation.

Say you put $10,000 of your savings in a bank, set a fixed term. The rate would be 2% or 3%, according to the bank.

In countries like Germany or Japan you receive even less than you initially placed.

The war on cash

That's the second trigger.

Did you know that this happens in Argentina too?

Yes, Federico Sturzenegger, president of the Central Bank, has gone from strength to strength in order to achieve the Swedish banking system. Sweden is a country that stands out for its low use of cash.

Countries around the world limit the amount of cash you can use. Why? Well, less cash translates into more tax revenue. Less black money and less cost of printing for governments.

What do Steemians think? What if we're soon talking about a bitcoin at $10,000? If you liked the post please give me your vote and follow me to grow in the community. Greetings from Venezuela brothers, take care.

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Thanks for this great info. I would like to resteem this to be my reminder of cryptocurrency bright future.

Thanks to you friend :D