Cryptocurrencies are set to turn away from the silk road and onto the path of respectability, argues ParcelHero. It’s a move that will see Bitcoin reach five digits within months.
Bitcoin’s value has soared since the beginning of October, as crypto currencies move rapidly out of the dark web and into the light. The e-commerce fulfilment expert ParcelHero says the value of Bitcoin will continue to rise as its respectability rises. And both are set to climb a long way.
ParcelHero’s head of consumer research, David Jinks MILT, says the double results of potential inclusion in the CME futures market and potential acceptance by Amazon pushed up a Bitcoin’s value to $7,000 today.
“On the face of it, that doesn’t make sense. Few Bitcoin owners today actually spend their digital currency, no matter whether on drugs from the dark web, or furniture from retailers that already accept Bitcoin; instead the majority see it as an investment,” he says. “So why are Bitcoin buyers so excited about the prospect of Amazon finally adopting the cryptocurrency when they are unlikely to blow their hard earned satoshis on the site themselves? Because the more mainstream a digital currency becomes, the more it will gain in value.”
“The bigger the user base, the more the price of Bitcoin will both rise and – the ultimate measure for would-be institutional investors – also become more resilient.”
Just the simple rumour in mid-October that Amazon might announce the acceptance of Bitcoin at its Q3 results meeting helped drive up the value of a Bitcoin to a then record $5,800. What will happen to its value when it eventually is accepted?
Perhaps even more important than any vote of confidence from Amazon is the news that the US-based exchange CME plans to introduce Bitcoin futures contracts this quarter, subject to regulatory approval. “The great news for Bitcoin investors is this looks like becoming a reality very shortly,” Jinks adds.
CME sounds very positive about gaining regulatory approval. Terry Duffy, CME’s Group chairman and CEO, told CNBC recently: ‘We’ve been working with the regulator. They understand our application. And they understand our model very, very well.’
The reason that announcement has so boosted Bitcoin’s value is that the introduction of the digital currency could bring more institutional investors into the market. “Don’t forget only 21 million Bitcoins will ever be issued—and we are already at 16.3 million; so demand for existing Bitcoins is likely to rise exponentially over time,” Jinks explains.
“Once Bitcoin are traded like any other futures investment, and welcomed by Amazon as easily as pounds and dollars, then they will cease to be the enfant terrible of finance, and instead become a solid investment beyond the reach of national governments’ and banks’ interference.”
