Broader market conditions seem extremely favorable to Bitcoin at the moment. The Fed's ultra easy money policy will fuel another asset bubble, with artificially low interest rates allowing a lot of potential startups to borrow money for new business ventures. Institutional investors will see the overoptimistic growth predictions in these startups and look to pump money into them. Whoever is invested in these emerging markets will likely make a lot of money within the next 5 years. What will be the largest, most speculative, most credit-fueled emerging market? You guessed it: Bitcoin.
The catch is that in accordance with Austrian Business Cycle Theory, a lot of these new Bitcoin business that emerge will not properly reflect consumer preferences. The easy credit from the Fed will cause substantial malinvestment, and a lot of the new Bitcoin businesses will fail after the Bitcoin market inevitably crashes. I'm going to arbitrarily predict that the crash will occur near the end of the current decade. Chances are that the price of Bitcoin will crash too. But in the 2020s, after the junk is cleaned out, stable growth of the Bitcoin market will resume. The point is, to an optimist like myself, we are the "smart money" in the following chart:
Institutional investors have yet to participate in the market. In fact, almost no one even knows what Bitcoin is. So it's possible that there is a great deal of money to be made. Best of luck.
