Is Bitcoin Here To Stay

Many are asking this question, because the media is touting bitcoin and writing positive and negative articles about it, they want to know if it's real. The question among all this, Is bitcoin here to stay?


Many are asking this question to find clarity to whether they should pay closer attention to this unique occurrence.
 

Let's look at several points that are and will occur in the bitcoin currency arena which will cause it to gain more momentum and become a lasting currency or storage of wealth. 

  • Scarcity- Bitcoin only has a finite amount of coins that will be put into circulation, 21,000,000, so after that there will be no more. No one can print any or create anymore, that's it!   It's the law of supply and demand in it's purest form, when too many people chase to few goods then the price goes up.

    The price and interest goes up until people get discouraged or find another area of interest. Understanding how scarcity works is important in bitcoin since it is the only currency that is scarce. Other currencies are not, and since they are controlled by Central Banks,  they can be increased or decreased at the whim of the Central Bankers. Anytime currencies can be manipulated up or down there is no longer a scarcity issue.

    Bitcoin is finite and is not controlled by a Central Bank, so it is what it is, a finite amount in circulation regardless. Now many are saying that bitcoin will not be a currency, but a storehouse of wealth, either way it will always have value due to its scarcity.
  • Education- As people learn more about bitcoin and how it works more will join in the enjoyment of growth that bitcoin offers.

    As pointed out above with scarcity as a driving force of value and more people learning about how to by it, the value will rise. There are not many places where the little guy or gal can purchase bitcoin and realize the massive returns on it but as they become more plentiful, and people learn how to put their money in them, the scarcity will tighten up and again value will rise.

    Many are predicting that bitcoin will reach over 1 million dollars a coin, whether they are right or not bitcoin will be a major wealth builder in a global investment pool.

    Current currencies will shift into bitcoin and allow the transfer to purchase the equivalent of bitcoin, then bitcoin will have it's own value and either be used to purchase goods and services or exchange back to other currencies for use in purchasing goods and services.

    Once more places decide to take bitcoin instead of other currencies and it's scarcity is complete [All bitcoin is mined.] then the value will float depending what others are willing to pay for it.

So in conclusion-We must ask the question is bitcoin here to stay, and answer with a strong yes, as long as people perceive it has value and allow continue to use it.  Are people willing to part with their local money for bitcoin and use it to replace current currencies?  As long as they do we will have a surge in bitcoin and perhaps other cyber currencies. Economics is driven by people, and how the people interact with a particular item or process. 

Bitcoin is people driven, to scarcity, and once the people figure out how to make bitcoin work for themselves they will drive the demand. Remember, if bitcoin is worth the cash equivalent of 1 million, or 1 hundred thousand dollars, it doesn't matter, it will allow small individuals to come together with small amounts to equal the larger amounts. 

With individuals being allowed to participate in the larger amount with smaller pieces, unlike looking for one large investors to drive  value, the sky's the limit with bitcoin.

PS: Here you will get information about bitcoin and how you can learn and earn interest per day, also there is some fabulous videos to watch.  

About the Author Dr. Raymond Jewell

Ray has a Doctorate in Economics and has special interest in evolving currencies. Ray watched closely as the Euro emerged and made several predictions as to its viability. Bitcoin is another emerging currency with special aspects to it that will make it more unique than anything we have seen before.

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