As Bitcoin has matured, it's become an investment that's impossible to ignore.
After a rocky period after it first exploded into the public consciousness in 2013, Bitcoin has outgained virtually every investment class. The price of Bitcoin increased 35% in 2015 and a stunning 123% in 2016.
Along the way Bitcoin has shown it can survive a variety of disasters- including an unsavory association with illegal drug buying and the bankruptcy of what was its biggest exchange.
In fact, Bitcoin is so resilient, and so technologically advanced, it's going to revolutionize the world's currency system.
With Bitcoin's tremendous potential, some proponents believe the Bitcoin price could rise to $10,000, $100,000, or even $1 million over the next decade. If Bitcoin prices do rise as much as some expect, even a modest investment of $500 or $1,000 could turn into the payoff of your life.
While there will be inevitable pullbacks, Bitcoin is built to continue appreciating over time...
Why Bitcoin Beats the Dollar
One of the biggest and often-overlooked reasons for Bitcoin's potential lies in the most basic of economic concepts : supply and demand.
"bitcoin miners" create the blocks that make up the foundation of the digital currency .
But the number of coins generated declines over time, tightening the supply.
When Bitcoin launched in 2009, the reward for mining one block was 50 bitcoins. That was cut to 25 bitcoins in 2012. And the reward was halved gain in 2016, to 12.5 bitcoins. The next halving is expected in 2021.
As time goes on, the supply of new bitcoins will get smaller and smaller, becoming a trickle until the very last Bitcoin is mined in 2140.
And that's it. No more new bitcoins. The Bitcoin supply will never grow beyond 21 million.
Now contrast this to fiat currency, such as the U.S. dollar.
The central banks that print fiat money have no limits. They just print more to pay the bills run up by free-spending governments.
But over the years the constant printing of new dollars has eroded 97% the buying power of existing dollars.What
cost $1 in 1913 would cost more than $24 today.
That can't happen with Bitcoin. It's controlled by a software algorithm, not governments. But supply is only half of the Bitcoin price increase equation ...