The Jury is Out on Bitcoin

We all can understand why people that follow Bitcoin’s progress over the past few weeks are a “bit” nervous.

The rise in its value has been surprising and fast. Bitcoin aficionados will tell you that they knew it all along the way while doubters will tell you that it is only a question of time before the cryptocurrency will crash down to earth.

So who is right? What does the future hold for the new digital “money?”

Most people would agree that a large part of the rapid price rise is due to the speed which Bitcoin has been adopted worldwide.

Bitcoin is much more appealing to the generations who understand, and are comfortable with computing and technology. Nobody denies that it is complicated to get your head around – but that is a huge part of cryptocurrencies’ attraction. The kudos associated with owning Bitcoins, and being able to trade them is a huge success for the digital currency.

People act through the ways in which they can use it and, in doing so, the currency is rapidly losing the association with crime and underground dealings on the “Dark Web” which marred its birth ten years ago.

One of the latest developments is the ability to use Bitcoin in IRAs and 401(k) rollovers of which Noble Bitcoin is at the forefront. It is a reflection of how far Bitcoin has come that people feel comfortable enough in its promise to save the value for their retirement. The fact that IRS also approved Bitcoin as an instrument that can provide tax break benefits, just adds another layer of credibility.

And again, doubters will say that Bitcoin has no intrinsic value – but neither does the US dollar! This is often glossed over – but the greenback is a fiat currency. It is a piece of paper and a government promise.

With the US national debt approaching $20 trillion ($61,324 for each US citizen), troops about to return to Afghanistan – a war which has cost $1.7 trillion to date, and a fiat economy – the current financial system seems less viable by the day.

On August 7th, Reuters issued this statement – “Russia will speed up work on reducing its dependence on U.S. payment systems and the dollar as a settling currency in response to U.S. sanctions”.

RIA news agency cited Deputy Foreign Minister Sergei Ryabkov: “We will, of course, intensify work related to import substitution, reduction of dependence on U.S. payment systems, on the dollar as a settling currency and so on. It is becoming a vital need.” 

Russia and China have an interest in Bitcoin’s development as part of their economy. Its ability to be used across borders as an international entity – not tied to a particular country or any governmental system has been appealing to some governments. As America makes it more difficult for some countries with sanctions – it simply pushes those countries further down the path of finding alternative solutions. This is another nail in the coffin for the dollar.

It is unlikely that the blockchain, cryptocurrencies, and Bitcoin, in particular, are going away anytime soon. Their rise looks to be both spectacular and is likely to have an astounding effect on the global economy.

Russia and China have access to cheap power supplies, which makes Bitcoin mining easier for them to produce. They also have vast areas of land, which is unused for any other purpose, where mining computers can be built without interference, and in privacy. It is estimated that Russia has the potential to produce 30% of all cryptocurrency mining operations.

One Russian company, Russian Miner Coin, is even exploring ways to minimize power consumption in computers by using semiconductor chips, made by Russia, in satellites in order to minimize power consumption. This is an indication of how seriously cryptocurrencies are being taken by Russia.

The table below gives a cost-benefit analysis of Bitcoin. When all has been said and done, it is an individual decision as to what, and how you integrate Bitcoin or cryptocurrencies in your futures.

Noble Bitcoin understands that the purpose of having an IRA  is to boost your retirement fund and provide money into the future. The potential explosive growth of Bitcoin, Ethereum, and other Cryptocurrencies is something that cannot be ignored by the serious investor any longer.