Could Bitcoin Top $1 Million?

Since the creation of the Federal Reserve in 1913 the U.S. dollar has lost 98% of its purchasing power. Take a look at the stunning chart below.


If there is one reason why Bitcoin is surging, this is it.

If you’ve never heard of Bitcoin – it’s a fascinating story.

Bitcoin is a digital currency and payment system.

Although its origins are murky, it is believed to have been created by a mysterious inventor/programmer by the surname of Satoshi Nakamoto in 2009.

The value of bitcoin is that it is totally independent from the traditional banking and financial system. This creates a number of important benefits for Bitcoin users.

The problem with regular currencies is that politicians can always print more – and they frequently do. That’s why the value of the dollar has fallen 97% since 1913 in the chart above.

Bitcoin solves this problem. Unlike the dollar, it is not controlled by any central authority such as the U.S. Federal Reserve. That protects Bitcoin users from greedy politicians.

Bitcoin also enables its users to bypass capital controls and transaction fees from banks because it is a direct, peer-to-peer network. For example, merchants can bypass 2% transaction fees they pay to Visa and MasterCard.

That’s just touching the surface. Bitcoin also offers better security and privacy than fiat currency.

As you can see, the benefits of a digital, decentralized currency are huge.

And it didn’t take long for the market to figure this out.

Bitcoin caught on fast after its launch in 2009.

People all across the world began exchanging their U.S. dollars, Japanese Yen and Chinese Yuan for Bitcoins.

Merchants were quick to catch on too. They are used to paying processing fees to banks. Bitcoin lets them conduct those transactions for free. No middle man required.

As Bitcoin became more popular, its value sky rocketed.

When it was first released in 2009, one Bitcoin was worth $0.001. That is one, one thousandth of a penny.

By 2011, as adoption rates increased, the value of $1 bitcoin hit parody with the U.S. dollar.

That means investing $100 in Bitcoin in 2009 would have grown into $10 million two years later.

Things got even crazier from there.

By 2013, the value of one Bitcoin had surged to more than $1,200 – reaching parody with gold this time. Are you noticing a trend here? Take a look at the incredible chart.

Clearly, the world saw incredible value in a digital, decentralized currency and payment system. The innovation is on par with the creation of the internet. A totally new landscape for exchanging information.

Stories about the new Bitcoin millionaires splashed the headlines. Anyone who just happened to buy some bitcoin was now seriously loaded.

For example, Kristoffer Koch. He bought $27 worth of Bitcoin in 2009 for a masters project.

After forgetting he even owned them – in 2013 he realized he was a millionaire. Fore more details on this incredible story click the link below.

This Man Bought $27 Worth of Bitcoin in 2009 and Now They’re worth $980,000.

Not to be outdone, how about the guy who convinced the pizza man to accept 10,000 Bitcoin for two pizzas in 2010?

If he had held onto his bitcoin, they would have been worth more than $10 million by 2013.

The $7 Million Dollar Bitcoin Pizza

When the madness hit a crescendo, the price of Bitcoin crashed.

Beginning in the second half of 2013, it began a two-year spiral, falling from above $1,200 to just above $200. Take a look at the decline below.

What you can also see in the chart is that Bitcoin has hit a long-term bottom and is once again on the rise. After bottoming out just above $200, Bitcoin recently hit $450 – that means its value is up more than 120% in just the last 12 months.

Bitcoin’s Popularity is Surging

Despite the volatility in its price – which is totally normal for a highly disruptive technology – Bitcoin has been doing nothing buy growing and becoming more popular.

Venture capitalists are investing billions into further developing Bitcoin infrastructure and making it easier and safer for consumers to use.

Average daily trading volume recent hit more than 2 million, a new all-time high. So from a trading perspective Bitcoin looks and feels just like a stock trading on an exchange.

Bitcoin is hugely popular in China. Millions of Chinese citizens are buying Bitcoin to preserve their wealth against weakness in the Yuan and bypass strict capital controls that limit deposits and withdrawals in and out of the country.

In the meantime, more of the biggest companies in the world continue to accept Bitcoin as payment.

That includes Apple, Amazon, Tesla and Overstock.

Clearly, Bitcoin is no longer some weird-ass technology that dorks talk about in their Mom’s basement. Its one of the most cutting edge areas in all of technology and financial services. And it clearly has the ability to completely change the way governments, consumers and merchants do business.

My prediction is that we are still in the very early stages of Bitcoin and its true potential.

Today, Bitcoin is worth around $450.

Some analysts are predicting its value could hit $10,000, $100,000 or even $1 million for each bitcoin.

Will Bitcoin Hit $1 Million? Yes, and Here’s Why.

If that happened, buying one Bitcoin today for $450 would be worth $1 million.

That may sound insane. But Bitcoin is no different than a company. If you told someone in the 1970’s that one share of Berkshire Hathaway would be worth close to $200,000 in 2015 they would have thought you were insane. Today it’s true.

I encourage everyone to dial into the Bitcoin story. It’s a high risk-reward investment. But I think digital and crypto currencies are going to be huge.

Americans Are Buying a Record Number of Guns

The response to the terrorist attack in San Bernadino? Americans bought a record number of guns for the sixth month in a row in November.

Record gun sales are producing record revenue for gun makers.

Smith and Wesson’s (NASDAQ: SWHC) share price is up more than 500% in the last five years. Revenue is up 67% in the last year. Take a look below.


A number of my clients have owned gun stocks for a few years. But if you missed out on the party, I don’t think it’s too late. I think gun stocks still have more upside.

That includes Sterm Ruger (NYSE: RGR).

If anyone would like to invest in gun stocks let me know.

I hope everyone is ready to have a great holiday. I’ll be back in a week or two to say hello.

Mike

Disclosure: I own shares of Smith & Wesson and Bitcoin.

This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.

ABOUT THE AUTHOR

Michael Vodicka

Michael Vodicka is the president and founder of the Vodicka Group Inc., a licensed investment advisor (Series 65) and a financial journalist.