Bitcoin and other digital currencies have been the talk of the year. The reason for this is very simple; they have outperformed traditional asset classes by over 20X (data as of second quarter ending). Many still remain skeptical of currencies like Bitcoin due to the fact there is nothing backing the digital currency. When it comes to public figures, it has been a mix of opinions. Public figures such as Bill Gates have quoted "Bitcoin is the future of money and it can't be stopped". On the other hand public figures such as Jaime Dimon (President @ JP Morgan Chase) have called bitcoin a "fraud". Mark Cuban (investor) has stated to the public that Bitcoin is in a "bubble".
At the end of the day, it's evident nobody can tell for sure which way the currency is going to go. One thing we think Bitcoin has going for itself is "Demand". Bitcoin is structured so that there is only a certain supply of it available within the market place. When there is limited supply of something, and increasing demand that creates volatility and the potential for it to continue gaining value. Demand has skyrocket from countries like Japan who have passed laws recognizing Bitcoin as a legal tender. Countries like Russia have also seen increased demand. The most intriguing thing we see with bitcoin is the demand factor. In the United States, we face trillions in debt. How do we service that debt? Well it comes down to us "printing" more money to meet our obligations. This is why Bitcoin has grown in popularity. As demand grows in the currency it is driving prices up. There is no "adding more bitcoins". There is a set amount and its fascinating to see what something can become when more and more people are jumping aboard to use it. Many people like Mark Cuban have stated there is nothing backing it, and we just don't agree with that. We would argue "demand" is what backs it and it's evident just by looking at the growth the last year price wise and user wise.
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