Australia has removed taxation on Bitcoin and will allow the currency to be used just as cash.
Bitcoin’s acceptance is going to increase with another country’s ability to expand and grow the market.
The ability to hedge a Bitcoin is an attractive appeal.
Bitcoin now has yet another country that is legalizing the crypto-currency: Australia is paving the way for the coin to be used as money without any kind of taxation. This protects businesses that are involved in Bitcoin. This means there is even more potential demand for the currency as this follows Japan’s moves to do the same a little over a month ago. Bitcoin surged even further on the news, up another 15% in one day. This is the trend that will continue.
I have written a great deal on Bitcoin. I see the benefits despite any potential shortcomings in the structure of the currency. The most basic element of all of this is this: There are only 20 million Bitcoins in existence. There will never be any more. Ever. However, look at the paper in your pocket. If you live in a major country, that currency is getting diluted every day.
Take a good hard look at the balance sheets of all of the major central banks in the world: Bank of Japan (BoJ), United States Federal Reserve (Fed), Bank of England (BoE), European Central Bank (ECB). What do they all have in common? These central banks have all taken extremist Keynesian measures to shore up their respective economies. This was done by purchasing assets from banks on a massive scale. This freed up reserves for banks which are now in the process of lending out those excess reserves. That increases the money supply. That means more inflation. That means the paper in your pocket is worth less today than it was yesterday, and that process is going to continue ad infinitum.
Dislaimer: This is not investing advice, this website is for educational purposes only.