Bitcoin Moves Higher On Sweden’s Election, Will It Cross $3,000?
via D. H. Taylor
- Swedish PM runs re-election funded entirely on Bitcoin
- Sweden’s LocalBitcoin sees surge in new users of 1,000 per month
- Currency continues unabated move higher towards $3,000.00
Bitcoin is nearing $3,000.00 once again. The crypto-currency has been here before but settled back down. Now, it is once again knocking on the door. Continually, I get more and more information streaming across my computer about larger acceptance of Bitcoin and how that will affect the coin’s value. Bitcoin has gotten more good news that is pushing demand upward and price is following. The $3,000.00 level is an eventuality as an entire new nation embraces the crytpocurrency.
Mathias Sundin, a liberal, Swedish MP, is running for re-election as a member of Parliament in the general election. He is running his campaign entirely on Bitcoin. His campaign promises are to fight against knee-jerk reactions meant to regulate the cryptocurrency.
By running his campaign using Bitcoin, Mr. Sundin, a self-professed Bitcoin enthusiast, has brought more awareness to Bitcoin. From that, LocalBitcoin has seen a large upswing in new users; the company reports 1,000 new subscribers per month.
The increased exposure has brought more and more buyers into the market, and this is helping to drive the price upwards for Bitcoin.
Continually, you are seeing more and more countries accept the currency as viable. While Bitcoin is mostly legal throughout the world, both Japan and Australia have legalized the cryptocurrency and made regulation less stringent, which is exactly what Sweden’s Sundin is trying to do.
Whereas all currencies in the world have an theoretical unlimited amount, there are a set number of coins in existence for Bitcoin: 21 million. Given the continued demand and limited supply the price moves higher and higher. There is another factor about Bitcoin that is pushing the price up: deflation and hoarding.
If you have a currency that is susceptible to inflation, meaning the purchasing value of the currency declines over time, then individuals who have the currency will get rid of them as fast as they can simply because the purchasing value declines with time. This effect happens because central banks continue to print money outside of the rate of growth of the economy’s expansion.
With Bitcoin, the set limitation on the number of coins means that the coin experiences deflation; the coin’s value does not erode over time but it moves higher. Because of this, there is a problem of hoarding. As the value of Bitcoin increases, individuals will be reluctant to spend their Bitcoin because they want to ensure the future value of Bitcoin over the present value of the item they are purchasing.
This is one of the reasons why Bitcoin’s value continues to increase, and with continued exposure and acceptance of Bitcoin, more and more individuals are getting involved in Bitcoin and pushing the price higher.
When you have a country’s leadership campaigning exclusively using Bitcoin, it adds a large dimension of acceptance to the coin’s allure and appeal. The surges in users being added shows how this is benefiting the currency.
Other countries have been legalizing the cryptocurrency; both Japan and Australia have done so in the past two months alone and are a big part of why Bitcoin is knocking on the $3,000.00 ceiling.
I am a big believer in Bitcoin for the previously mentioned reasons. The money in your pocket is losing value every day, whereas the cryptocurrency is doing just the opposite, gaining value. It only makes sense to buy and hold Bitcoin, accessing it whenever you need. In the long run you repurchasing power increases as more and more individuals get involved in buying the currency. The limited supply and potential of every person in the world using the currency has a disproportionate ability to push the it upwards for a long period of time.