Most investors in the crypto verse focus mainly on a cryptocurrency’s price. That is the nature of the beast, and the same thing happens in almost any other market (Forex, commodities, stock exchanges, you name it).
That emphasis on the price is known as “market technical analysis,” but it’s not the only way to go. There’s also a different point of view known as “fundamental analysis” which goes for intrinsic value rather than price.
Bitcoin as a payments company, not just as a coin
In this article, we’ll share with you a different way to approach Bitcoin. It is a currency for sure, but it has a strong use case that’s often ignored by analysts because of the stress in price.
Try for a minute to forget everything you know about BTC. Imagine it’s not a currency. Think of it as a global payments system, and you’ll start noticing some interesting facts.
2018 was a complete disaster for Bitcoin as you surely know already. It went down from $17,000 USD to $3,000 USD. So it didn’t do very well as a coin. But as a payment system?
If we considered it from that angle, it did very well, and it would have had around $300 Million in sales over the year. If we approach BTC as a payments company, it’s a very successful one. It already moves as much money around the world as MasterCard or Visa do.
Besides huge sales throughout the year, its profitability has increased exponentially over the last 11 years and the total fees paid to miners over the last eight years would be north of 1.5 billion dollars.
It’s not only a payments company. It’s a gargantuan one, and it’s thriving. It has no marketing budget, and the network only becomes stronger as it grows. So those number can only go up in the future.
Think about companies like Amazon, Tesla Motors or FedEx. They are global giants, and they lead the way in their respective industries. But they were not born so successful, each of those household names needed at least five years each to take off, and look where they are now.
And that’s precisely what could happen with Bitcoin in the future. Not necessarily as a currency but as a payments organization that will create billions of dollars in fees for miners.
And what about the price?
The fees went down during 2018, as the market has been in free fall for more than 15 months now. And that could mean that we’re about to see the market go back up once again, as it’s happened every time in the past after a crash.
The last time we had such a protracted period of losses was from 2014 to 2015. Then, the next year, Bitcoin went up by a factor of six and in 2017 by a factor of 40.
Looking at Bitcoin from this perspective shows clearly that it has a fundamental value that is not so obvious if you think about it as a cryptocurrency only (even if it remains the most important one). And those fundamentals could push the price back up in the next few months or years. It could even happen during this year.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
