Wednesday, January 20, 2016

10 Arguments for Investing in Bitcoin

http://www.forbes.com/sites/laurashin/2015/12/11/should-you-invest-in-bitcoin-10-arguments-in-favor-as-of-december-2015/#2715e4857a0b40c5dd540ec6


The analysis posits that a certain amount of Bitcoin will be used for online payments, remittances, micro-transactions (such as paying a tiny amount to read an article in lieu of seeing ads), applications for the unbanked and other, unknown applications and projects growth rates for each application. It then calculates the Bitcoin monetary base required to support that amount of transactions and works backward using a 40% discount rate (to determine what the present value of Bitcoin needs to be in order to support that amount of economic activity in 2025). After adding up all the Bitcoin needed for online payments, remittances, micro-transactions, the unbanked and other applications in the year 2025, he concludes that one Bitcoin will, by then, be worth $17,473, and that the present value of a Bitcoin would need to be $604 today to support that amount of economic activity in 2025. If Luria’s projection becomes true, anyone investing today would see a 40+x return within 10 years.

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