The adoption of Bitcoin has soared. In this feature Michael Hudson, CEO of Bitstocks, says the best is yet to come.
WITH AN IMPRESSIVE 300% GROWTH IN THE last 12 months, Bitcoin has been the subject matter of many a headline recently. Each time it surges, breaking through previous all-time highs, each time it corrects, giving the naysayers an opportunity to push their “I told you so’s”, a media frenzy takes place. It is unsurprising then that many who may not previously been aware of Bitcoin, or perhaps had heard about this ‘digital gold’ but remained somewhat sceptical, are now wondering whether they have missed the boat for Bitcoin investment. It is a question we field on a nearly daily basis at Bitstocks. “Am I too late?” Our response is always a confident “no”. No, it is not too late - let us explain why.
Bitcoin is Not a Currency Fiat currency is not backed by anything other than the buying power bestowed upon it by the government. When a government decides to expand the supply, the new money (or more correctly the 000’s simply entered onto an accounting sheet somewhere!) sucks value from the existing money supply. This is commonly known as inflation, and one of the most insidious ‘taxes’ we, as citizens, are subjected to. We are forced to accept that what we can buy with £1,000 today will cost significantly more in the future. This is the nature of inflation; it erodes the buying power of currency.
Money, on the other hand, holds intrinsic value. If you hold a pair of 18ct gold cufflinks in your hand, you instinctively know, or understand, that they are valuable. As a mineral, gold is limited. Once the world’s supply is mined, we cannot simply create more. Your gold cufflinks hold value because they are made from a precious commodity. Their price is determined by the free market and what someone is willing to pay for them at that point in time. And thanks to inflation, you are assured that the price they fetch today is lower than what they will in the future.
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE