Why Is Bitcoin Doing So Well?

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If you haven’t heard, the value of a Bitcoin token has gone up above the $6000 mark!

Back on September 15, 2017, Bitcoin crashed and overnight fell from nearly $4300 to $3071! Investors in Bitcoin (and other cryptocurrencies) were waking up the next morning in a state of shock! Was this the end of Bitcoin and cryptocurrency?

But Bitcoin and many of the other cryptocurrencies took it on the chin and survived. The mighty Blockchain – as I affectionately refer to it – did what it was supposed to.

Bitcoin and cryptocurrency are here to stay!

But what happened? Why did Bitcoin take such a drastic dip in the marketplace and rebound and rise in value as it has of late? Here is my take on it.

China

We have China to thank for this! Thank you, China!

Late this summer, China placed a ban on Initial Coin Offerings (ICO’s)  – how new cryptos are offered to the public for purchase – and trading them on the Crypto Exchanges there. The result of this ban caused the price of Bitcoin to fall.

But what  I believed was overlooked by many – especially the Chinese government – is that most ICO’s are built upon Ethereum, not Bitcoin. So what essentially happened was that the cryptocurrency investor in China said to himself  …

“Well, if my country won’t allow me to buy and trade my Bitcoin, I will trade them in a country where there is no ban!”

Keep in mind that cryptocurrency trading is anonymous and outside the purview and prying eyes of banks and governments.

So, the Chinese investor traded his Bitcoin in Japan and South Korea and this resulted in the meteoric rise in the price of Bitcoin that we are seeing now.

The Upcoming Bitcoin Segwit2x Fork

On November 16, 2017, a fork is projected to take place. This will create two Bitcoin Blockchains: The current Bitcoin Blockchain and the new Bitcoin2x Blockchain.

Bitcoin owners will automatically be credited with an equal amount of the new Bitcoin2x. So, investors are buying up Bitcoin now before the November 16th date to take advantage of the fork.

This is also driving up the price of Bitcoin.

Conclusion

I believe the price of Bitcoin will continue to rise and by this time next year could reach $20,000 or more!

The resistance by the central banking systems of the world to slow down or even kill Bitcoin has failed and will continue to fail. Recovery from the September 15, 2017, crash is powerful evidence of that.

I believe –  while on the outside – the central banking systems of the world (especially the ones in the United States and Europe) are putting on a facade in front of the public to decry cryptocurrency (even getting rich and powerful men such as Warren Buffett and JPMorgan Executive James Dimon to be that decrying voice), are doing something quite different on the inside.

I believe that they have secretly jumped on the bandwagon and are investing in Bitcoin and some of the other cryptocurrencies. I also believe that they are planning to spin up their own proprietary Blockchain networks. Why?

It is simple. “Follow the money.”

It is basic human greed. People like Warren Buffett and James Dimon are very smart people and they are not ignorant to the fact that cryptocurrency and Blockchain technology cannot be stopped and is here to stay. They MUST have reasoned this out in their heads that …

“If I cannot stop this train, I had better get aboard it and take the ride.”

Why would they NOT do that! There is a tremendous amount of money to be made in cryptocurrency and they know this. And, given that they are businessmen who are in the business of making money, they are not going to let this pass them by. I do not care what they say in public. The very nature of who they are dictates that they must get on the cryptocurrency train. And, I believe they secretly have.

So should we.

It is not too late to buy Bitcoin and Ethereum. Understand that you can buy a portion of a coin. If you do not have $6000 to buy one Bitcoin token, buy – for example – $500 worth and add on to it when you are able until you have a full coin. Then keep on buying more and hold them.

I purchased by Bitcoins back when they were just under $4000. I could not afford to place a full $4000 on it. But each pay period, I would throw whatever extra money I had into Bitcoin until I had a full coin. You are investing. You are buying a scarce “digital gold” so-to-speak. There are only 21,000,000 Bitcoins and there will never … and I mean never be more than that. The limit on Bitcoin has been “mathematically” encoded into the coin and it is not possible to inflate them.

But here is a bit of bad news (if one wants to call it that). The value of Bitcoin is rising (you always buy a coin when it is low), and if one waits too long, it could take longer to own a full coin. But even if you purchased a partial Bitcoin and the price continues to go up, you still win. It will just take longer for a person of average or below average means to own a full Bitcoin.

But it appears to me that we are witnessing the next evolution of money and the deeply embedded banking systems of the world do not know what to do about it. Or, they may be thinking, should they try to do anything about it at all and reason …

“If we can’t beat them, join them.”

RJ

A retired Information Technology Specialist and Foreign Service Officer with a large U.S. Government Federal Agency, Technical Instructor, Blogger, WordPress Instructor, Web Designer, Internet Marketer and Cryptocurrency Investor and Mentor.


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