Why retailers, investors and employees are turning to cryptocurrencies for everyday transactions.
Despite many warnings of a 2018-style dump after a plateau around Bitcoin’s $10k mark, predictions are that new institutional and retail investors will begin to show interest in Bitcoin investment as new coins such as Facbook's Libra gain more press traction.
These sentiments are supported by the co-founder of Morgan Creek Digital, Anthony Pompliano, after he was quoted saying that Bitcoin is here to stay. He also believes that Bitcoin will soon be on every institutional investors’ portfolio.
This comes as the Dallas Mavericks become the second NBA basketball team to accept Bitcoin as a form of payment for tickets and merchandise. The first team to accept Bitcoin, the Sacramento Kings, began as early as 2014 when the price of a single coin was trading at around $850 versus north of $10,000 today.
Earlier this month, New Zealand became the latest country to issue tax guidelines for companies that are paying employees in cryptocurrencies, in a move that brings the oft-maligned asset class in line with mainstream forms of payment.
With this movement for employees, companies and investors towards Bitcoin and other cryptocurrencies, what role will these currencies have in our everyday lives in the future?
Daniele Mensi, CMO of NextHash, commented, "The volatility of cryptocurrencies allows investors and companies to grow at a great pace, especially if political situations affect the value of a nation's centralised currency and slows growth.
“Retail and institutional investors have seen this and, despite some short term fluctuations, there is very rewarding, long-term growth in some of these cryptocurrencies.
“Therefore, it is no surprise that companies, investors, and individuals want to take advantage of the unique nature of these currencies. Some experts have estimated that Bitcoin could be worth in excess of $50,000 by the end of 2020, potentially increasing fivefold in the next 16 months.
“This may push more businesses to incorporate, accept and trade cryptocurrencies as part of their growth strategy. We may even start to see people holding money in several different currencies as they diversify their personal financial holdings."