Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming

  • Posted December 28, 2016

In 2016, Bitcoin and gold have seen massive rallies. Gold stumbled hard in the last quarter of the year, but Bitcoin surged even higher, back up to it’s record levels from 3 years ago. The current price of Bitcoin is $959 …… but just how far away is $10,000?

Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming chart

$10,000 Bitcoin

Looking at the history of price swings in Bitcoin, $10,000 is not that far away, but in truth, neither is $200! Bitcoin by it’s very nature has huge swings in part because the general public still has not grasped the world changing reality of digital currency and the blockchain. It is still considered highly ‘speculative’.

I’m not going to get into all of the politics of decentralized money, nor the safety of deposits on hand in any one bank, nor the general pros and cons of Bitcoin. Simply, I want to illustrate why $10,000 Bitcoin is coming.

Let’s start with the market capitalization of Bitcoin. Market capitalization is the total value of something. In the case of Bitcoin, the market cap is currently at a record $15.4 billion dollars.

This is calculated by taking the current total number of Bitcoins in existence 16,068,750 and multiplying it by the current price of $959. (note: Bitcoins will cease to be mined at 21 million, here you can track the market capitalization of all crypto currencies)

As Bitcoin is globally traded, $15.4 billion dollars is not much at all. Consider that Apple (NASDAQ: AAPL) alone has a market cap of $625 billion dollars…and consider that there is over $60 trillion in equities in general!

$10,000 Bitcoin would equal a market cap of a mere $161 billion dollars. That is about the size of Pepsi (NYSE: PEP) or Cisco Systems (NASDAQ: CSCO).

In time, if Bitcoin were to reach the level of capitalization as Apple is currently, Bitcoin would be valued at $39,000.

We are talking about a relatively new (about 10 years old), but definitely up-and-coming global currency, in a world with a $120 trillion dollar GDP!

You see, it’s nothing at all to get Bitcoin to $10,000. It’s all a matter of sentiment, and right now the sentiment out of China is quite notable.

Bitcoin rises in China

Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming chinaBitcoin’s latest push higher can be attributed to Chinese trading, as they have their own stock market concerns and yuan devaluations looming. China is a country of over 1.3 billion people, and their (PPP) GDP of over $20 trillion is the world’s largest!

Well, you can see Chinese Bitcoin inflows REAL TIME.

Truthfully, I don’t know if we will see the price at $500 again before we see $10,000. But I don’t really think it matters, unless you are a crypto currency day trader.

As Bitcoin popularity grows, euphoria takes hold, prices skyrocket, then governments will attempt to regulate Bitcoin use, people will panic, the price will fall, then people eventually start using it again, then it’s popularity grows, euphoria takes over, and on goes the cycle….albeit with a new floor and support.

Adding Bitcoin to your cash and tangible assets is not a bad move considering it’s potential. Crypto currencies and the blockchain are the future. $10,000 Bitcoin is not that far away.

 

Gold

While most of 2016 was bullish for gold, the price got smacked down pretty hard in the last quarter. But as it sits now, gold is oversold to the downside, and extremely undervalued.

Though the threat of deflation should always be minded, for this particular post, the short-term move for gold will be addressed.

Currently, Daily Sentiment Index for gold is at historical lows. Elliot wave cycles are at or near completion, and gold is poised for a rally. Further, the National Inflation Association has released their latest memo saying gold is “….due for an explosive short-term rally of $78 per oz!” See NIA lay out their algorithms why gold will rally in the short-term.

 

Conclusion

Heading into 2017, the Trump Rally may be nearing it’s end, and the global realities are coming back into focus.

Consider taking advantage of, or at least studying, the current opportunities in Bitcoin and Gold… may you prosper as $10,000 Bitcoin becomes one of those global realities.

bitcoin-address

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Here are some useful tools:
Bitcoin Wallet
Bitcoin Charts
Bitcoin Exchanges – BTCe  Bter
Crytpo Currency Market Capitalizations
Bitcoin real time flow
National Inflation Association

Merry Christmas
In God’s will
-Travis

 

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