FERRARI HAS JUST VALIDATED CRYPTO-CURRENCY, BITCOIN

If you do not have Bitcoin, Ether or any other cryptocurrency among your investment portfolio at this point in time, then you are about to miss out on one of the greatest wealth creation opportunities that ever was. At the time of writing this piece the US government looks close to accepting Bitcoin onto the Exchange Traded Fund (ETF) by the Securities and Exchange Commission in the United States.

And so? Someone might ask. Well, lets get into some precision. By bitcoin having a spot on the EFT, it means bitcoin will be backed by actual bitcoins rather than futures and derivatives. This means that it will become harder to dilute bitcoin since the bulk of investors are still on the outside of the scope of cryptocurrency. 

Just imagine huge investment funds such as BlackRock, Invesco, WisdomTree, BridgeWater and Fidelity with Assets Under Management (AUM) in the Trillions of Dollars swapping a small fraction of their assets for bitcoin, that will bring some serious value to the crypto space without a doubt. If this hasn’t yet caught your attention then maybe the next section will.

At this point in time (Oct. 2023) one bitcoin is going for about US$29,000. And for the same thing that was worth less than a dollar back in 2010 you might think it is too late to invest, or too expensive to risk your hard-earned money. My answer to that would be, you do not have to buy one whole bitcoin to benefit from its bull runs, even a fraction of a bitcoin can still bring you a fortune. 

It is predicted that one bitcoin will be somewhere between 500,000 and 1,000,000 dollars by 2030, that is about a multiple of 30 or 3,000% increase from the 29,000 in just about 6 years. For those who think that three thousand percent is too ambitious should remember that bitcoin value has grown over sixty thousand percent since 2010. This might be the last time we see bitcoin at under 30 thousand dollars.

That brings us to the Ferrari that we almost forgot about, or was wondering if that was a typo, no it wasn’t. Ferrari has begun accepting payment in bitcoin and ether for their luxury cars, yes you read correct, cryptocurrency. This move by the powerhouse car maker just clears the doubts of many potentially ‘doubting Thomases’ to ask the key trillion-dollar question, “Why would a reputable company such as Ferrari risk millions of dollars in a crypto space that has no future according to the millions of naysayers?”

Ferrari is not the first among major companies nor will it be the last to validate cryptocurrency, but the more such companies that have for a long time sat on the fence on issues regarding crypto get on board, the more value it will accrue, this cannot be overstated. Also, with the Securities Exchange Commission on the brink of making a major decision in the crypto space with an ETF spot, the sky can only be the limit for cryptocurrency.

As I end this writing right at the heart of Africa in Kampala, I am getting my 1,000 dollars which is losing value every year (inflation) from my drawer (I hope a rat didn’t find its way in to devalue it further lol…) and investing that 1,000 dollars, in 2030 I might have somewhere between 20 and 30 thousand dollars. Not bad for income I get while am asleep if you asked me.

Gerald Munduga

The Author is a Freelance Communications Specialist