Bitcoin mania is sweeping the world. Record prices are being paid for a commodity that simply doesn’t exist. Investors are being warned to avoid it like the plague and analysts are clearly confounded by the hype around the world’s most popular cryptocurrency.
Financial gurus are either predicting a Bitcoin bubble ten times that of the dot-com crash or a sustained BTC boom, where prices are tipped to reach $20k or more.
Some Sportsbooks and Online Casinos are now accepting Bitcoin as a new gen payment method, along with other alternative purchase methods (APMS) An increasing number of web-based and B&M businesses around the world support BTC.
Canadians can even buy wine at Rollingdale Winery in Kelowna or a meal at the Bestie Sausage Parlour in Vancouver or Remedy Café in Edmonton with nothing more than a strip of code!
Whether you love it or hate it, Bitcoin is trending big time. And of the world’s 195 countries, Canada is right in the midst of the cryptocurrency revolution! Let’s take a look at a few Bitcoin facts that’ll either induce you to buy the currency……or run screaming for the hills:
Volatility is the Game
In 2010, you could buy BTC for USD $1. At the end of November 2017, the price was $11 000. But it’s not all smooth sailing. After growing more than 1 000% since the start of the year and posting an impressive two month gain, the cryptocurrency hit the skids on November 30th, losing almost 20% of its value in just 90 minutes.
Why? The investor rush to tap into the deal of the century resulted in a cross-network outage. Several online exchanges and trading platforms either crashed or malfunctioned, generating unprecedented panic. When one considers the Bitcoin network uses the most powerful supercomputers in the world – and still failed – the scale of demand for a comparatively new commodity is something the world has never seen.
Easily Accessible in Canada
Canadians can easily add the ‘virtual gold’ to investment portfolios. There’s a choice of more than 20 BTC exchanges that accept a wide range of payment methods. But, if actually buying the currency appears too risky, folk living in British Columbia can invest in a share of the commodity via a fund managed Bitcoin pool.
The Canadian Bitcoin Trust is one of the first entities of this kind in the world. It follows hot on the heels of the first-ever BTC bank machine that resides at Wave’s Coffee House in downtown Vancouver. Today, there are more than 300 ATM’s in Canada that spew out the cryptocurrency. Only the USA, with 1185, has more machines in more locations.
Where’s the Value?
Although Canadians are clearly buying into the cryptocurrency, the big question is; where’s the value? The fact is there is no underlying rate of return. Today, right now, the value of BTC is equitable to only 2% of the world’s gold reserves. You can’t touch or hold Bitcoin, it’s a virtual commodity that cannot be used commercially and you don’t earn dividends or interest by holding the currency.
The value is entirely dependent on demand. And when you factor in that one man, the enigmatic developer of the virtual cash, owns a stockpile of 1 million Bitcoin, this new millennia cash equivalent is dangerously vulnerable to price manipulation.
Canada’s EtherBitcoin maniaeum
Bitcoin may be big today and gone tomorrow. But some pundits believe it’s Canada’s own cryptocurrency, Ethereum that’s going to drive the next big market boom. At just $436, maybe it’s a good time to invest in ETH instead!