Good evening or good afternoon, maybe good morning to you all.
I was reading a lot these days about cryptocurrencies and wanted to share my thoughts here on steemit on March 19, 2018.
Yes I included the date of posting as I believe someone will find this post later, maybe next year and see how my thought have been accurate or inaccurate :)
Prologue:
The price of BTC fell to 6K in February this year after the highs (20K) it achieved in DEC-2017.
As of March 2018, the price moved up to 11.7K and had another crash down to 7.3K. (At the moment of this writing, BTC is trading at 8400-8500 range).
Ripple XRP skyrocketed to 3.5 dollars from just quarter of a dollar and fell alongside of BTC as low as 0.5 in Feb. Curently trading within 0.6-0.7 range.
My 3 reasons for Bullish future, currently bearish for short term - meaning few weeks or couple of months.
1) US residents are now tax liable for trading crypto currencies.
Some will say, that this is bad for cryptocurrency prices but I say it is actually good and here is why:
- Can illegal business be taxable? - NO. If government thinks that it can grab a share from cryptocurrency gains, doesn't that mean that they expect people will continue to invest in cryptos? Otherwise they would just ban the cryptos and pull down the curtains but ... instead, they are imposing taxes on "profitable business"
- Point above, practically eliminates the chances to ban cryptocurrency trading in the US, thus motivating digital coin related businesses to focus on the US market, which is one of the largest markets in the world both by population and economy.
- Taxable trading will look less scammy and more reliable for recreational investors and they will enter or re-enter the crypto market with less or no fear to loose their money, thus creating more demand and pushing up prices.
2) There are three countries in the world with safe heaven currencies and all three are considered more less crypto friendly rather than crypto opponents - USA with USD, Switzerland with CHF and Japan with JPY.
3) Tons of money are invested in blockchain development, fastening transaction speed and reducing transaction costs. One of the recent example is "Lightning Network". Of course there is no future for blockchain without cryptocurrencies.
Epilogue:
I will be proudly remembering this post after few years, when even more of the world's population will be inducted in the game of cryptocraze or "digital gold rush" as being one without a coin will be gradually becoming as weird as being one without a cell phone - still using a pager from old times.