CNBC Fast Money’s Brian Kelly outlines the top three reasons why he feels investors should be buying Bitcoin.
The Amazon Factor
Brian Kelly of CNBC’s Fast Money has promoted three major, key reasons to buy Bitcoin. The first reason, as Kelly explains, is that Bitcoin will “Amazon” the banks, meaning that Bitcoin will be to the banking world what Amazon has been to retail. Amazon revolutionized the supply chain industry for products to the consumer, essentially bypassing the middleman. Bitcoin is set to revolutionize the way transactions occur in much the same way, enabling direct payments between two parties without the need for a third party operator, across borders too.
Why buy #bitcoin? @BKBrianKelly has three reasons to get in pic.twitter.com/0acYhvDfe2
— CNBC's Fast Money (@CNBCFastMoney) October 30, 2017
Bitcoin – a Massive Addressable Market
How big is the Bitcoin market? Kelly believes there is an upside to the market, predicting that there is plenty of room to grow, seeing not unreasonable increases of 1o times. With a current market cap hovering around $100 billion, that would put the digital currency’s predicted future market cap somewhere in the region of $1 trillion, giving a single Bitcoin the value of $60,000. The rationale behind the valuation being that should Bitcoin be used for daily monetary transfers, the amount of daily transactions actioned by banks, for instance, JPMorgan, numbers upwards of $7 trillion. If Bitcoin grew to fulfil even a fraction of that, its a large addressable market.
Demonstrated Demand For Product
The increase in the number of new wallets and Bitcoin addresses being created is consistently growing, with charts showing (above) address creation now occurring at an exponential rate. Coinbase, a popular portal for buying Bitcoin and other cryptocurrencies reported that their signups have increased so significantly that they are seeing approximately 1 million new wallets and accounts being opened every month. That is an intense, so far sustained and demonstrable demand for Bitcoin.
Coinbase user signups have accelerated again to 50k/day or 1.5mil per month (data from last 4 days)#bitcoin https://t.co/B1T4BMZUzi
— Alistair Milne (@alistairmilne) November 1, 2017
With recent news about the CME Group offering Bitcoin futures by the end of the year and the market price hitting another all time high of $6,600 over the past 24 hours, Bitcoin’s growth, value, and adoption show no sign of stopping anytime soon.
In Bitcoin’s history to date, practically anytime has proven to be a good time to buy. Do you need further convincing? Let us know what you think in the comments below.
Images courtesy of Shutterstock, Blockchain.info, Pixabay