Then did BitCoin, the first cryptocurrency, make a 1000% price increase? I checked back on some old price charts of BitCoin, and it went from $.06 in 09/25/2010 to $8.05 07/18/2012, and to $62.50 in 03/23/2013, and to $641.23 in 11/20/2013. The reason I picked those dates are they are the closest dates to a power of 10 increase in the price. From $.06 to $6.00 is a 100 fold increase, and from $.06 to $60.00 is a 1000 fold increase, and from $.06 to $600 is a 10,000 fold increase. A 10,000 fold increase is the one that changes a thousand dollars to a million.
A 10,000 fold increase means add “four zeroes” to your original investment. So if you would have investmented $1,000in BitCoin on 09/25/2010 at $.06, you would have had $1,000,000.
So if you didn’t get in early on BitCoin, you can still make money. Some believe it will go from it’s current price around $2400 to $500,000 or $1,000,000 by 2030. But are there any opportunities today that can give you that 10,000 fold increase without waiting 13 years?
First, let me point out that after BitCoin paved the road, many other “alt-coins” followed. An alt-coin is some other cryptocurrency or digital currency that operates somewhat like BitCoin and can be traded.
The one that I’m investing is currently BitShares. It’s built on a platform that doesn’t harm the enviroment like BitCoin does. BitCoin requires tens of thousands of miners performing number crunching cryptographic calculations on special chips. That results in heat, and thus more cooling costs; so BitShares is much more ecologically friendly.
But beyond that, BitShares is 1000s of times faster than BitCoin. While BitCoin may or may not get improved in the future, BitSharea is currently capable of completing transactions in a few seconds instead of the 20 to 40 minutes it might take to confirm a BitCoin transaction. Alt-Coins and Crypocurrencies are still in intial adopters stage. Remember the first guys to have a TV on the block, or the first to have a pocket calculator, the first to have a video game, the first guy to have a cell phone or smart phone, and so on. There are always early adopters, typically the geeks who must have it first. But in the next two to five years, everybody else jumps on the bandwagon.
According to this blog: http://bitscan.com/bitnews/item/how-many-people-really-own-bitcoins-and-why-does-it-matter, there were only 2.5 million accounts that had money in them. That is .03% (under one third of one percent) of the 7 billion people on planet earth. If digital currencies become as popular as smart phones have, then
More people have cell phones than toilets.
More People Have Cell Phones Than Toilets, U.N. Study Shows
This article suggests that 70% of the people on earth will have a cell phone by 2020.
So imagine when cryptocurrencies go from under 1% to even 10%. This is likely to cause a huge spike in the prices of cryptocurrencies. As with cell phones, we have winners like Apple and Samsung and a few others, there will be some coins that win the race, and their prices will skyrocket.
I believe BitShares will be one of those alt-coins. Now, the amazing thing is that BitCoins today is like a pennystock. It’s cheap to buy, only $.07. That’s why I picked the closes price possible in my BitCoin example above (remember it went from $.06 to over $2700 at one point. That kind of profit makes Bill Gates and Warren Buffet look like ninnies. I think BitShares is set to do the same kind of price increase, and I believe it will happen in less time. It took BitCoin from 22 months to go from $.06 to $8.05, then only 8 months to go to $62.50, then only 8 more months to go to $641.23. But BitCoin was the pioneer. As people are now more accustomed to BitCoin and cryptocurrencies, hearing about it in the new everyday, the other coins will rise faster.
CSR is actually doing a Billion Dollar prize. The details aren’t fixed yet. But I believe it’s based on the idea that they are investing $1,000,000 in the BitShares Market Hero, and then expecting it to go up 1000 times in the next year or two, turning their $1 million into $1 billion. That means if BitShares simply goes from $.07 to $70 they will have achieved that goal. (Let’s do the math again – $.07 to $7.00 is a 100x increase, and $.07 to $70.00 is a 1000x increase.)
The Market Hero is a little hard to understand at first. I’ll save that for the next blog. But it’s based on BitShares and runs on the BitShares platform. You put your money in both BitSharea and the specific Market Hero to take advantage of a surge in each.
Disclaimer: I am not an investment advisor, and I cannot make any claim or guarantee of any kind. I just know that I will be investing in BitShares heavily in the next few months.
Bitshares is built on Graphene. Several sites and businesses thrive around the Bitshares/Grapphene ecosystem as shown on this diagram: