The winds are changing for Bitcoin and naysayers finally have reason to believe in the power and value of the controversial cryptocurrency. In fact, there are three reasons.
- Everyone wants a piece of that game-changing blockchain technology.
Bitcoin is perceived to be an emerging alternative asset class with high viability. Institutional and retail investors should be wise enough to notice that Bitcoin’s investment potential is unlike any other in the market today.
At the core of it all is the game-changing technology offered only by Bitcoin. There is no other asset that offers the same global technology used by an advanced ecosystem of future-proof companies. The beauty of Bitcoin lies in the blockchain—a decentralized public ledger or transaction log that is verified and viewable by all users within 10 minutes of any transaction. It is a novel check-and-balance system that the users themselves can implement.
Say goodbye to patience-testing verification periods that credit card companies or international wires put you through. Moreover, the blockchain acts as a permanent and un-editable database that speaks of convenience and accountability at the same time.
And the benefits of blockchain don’t end there. In fact, it’s only beginning.
Last April, UBS announced that they were experimenting with the blockchain technology in regards to other financial applications such as remittances, payment processing, auditing, personal finance, information checking, security clearing, and so on.
And Santander of Spain reports that they predict that blockchain technology can reduce banking’s infrastructure costs by at least $15 billion. With a margin like that, who wouldn’t want in?
- Break all borders.
Bitcoin knows no limit to age or location as an investment. Transactions happen in real time. There are little to no fees per transaction. The Santander prediction could be true when you consider the impact of freedom from cross-border payments and inter-country charges.
Moreover, Bitcoin has a wider range of qualified markets. There are no formal requirements needed. There are no minimum trade sizes. All major institutions and retail investors are excited over the potential power from new and first-time investors.
According to TheStreet.com, the Fortress Investment Group (FIG), a global asset company worth more than $60 billion in assets, became one of the major investors in Bitcoin by buying more than $20 million in assets.
- Bitcoin is the future of next-generation alternative assets.
The fields of issuance, allocation and trading have seen remarkable growth over the recent quarters, with a 31% increase in alternative mutual funds seen at the end of 2014. Venture capital investments also experienced a 22% growth.
Based on a the Global Private Equity Report 2015, private capital equity grew by $499 billion last year, a whopping 130% increase over the past decade. Private equity funds held a record-breaking amount of dry powder, totaling in $1.2 trillion in 2014.
This is evidence that more and more investors are looking for non-traditional ways to invest. Risk appetites are increasing. Asset allocations have grown larger. And the demand for high-risk/high-reward assets is steadily rising.
Fortunately, Bitcoin is here to meet that demand.