Why Bitcoin Is Destined for Bigger Things

As Bitcoin (BTC)  continues to whipsaw on political, social and economic influences, we take a step back to soak up the bigger picture. Whilst it's natural to get caught up in the short-term market fluctuations, crypto-bulls like U.S. venture capital investor Tim Draper recently declared that "Bitcoin is part of a major movement" and is still "the best place to put your money."

With this is mind, we used the CoinWatch Platform and news sentiment to delve into deeper into Bitcoin's long-term prospects.                                                              

Bitcoin Bounces Back

One indicator for Bitcoin's long-term growth is Bitcoin's ability to bounce back from market influences. Whenever a catalytic event occurs, like the fallout from the UPbit raid in South Korea, it usually sends tremors through the crypto market. However, the good news for Bitcoin is that enthusiasts like Crypto Hedge Fund CEO, Joe DiPasquale, speculated that this is just a temporary reaction while the markets mature. He said the "markets have overreacted in past" and "as the market matures, investors will grow a thicker skin."                                                     

Increasing Investor Endorsement 

Bitcoin still has a resounding bullish news sentiment and new-found endorsements from respected investors. This is a strong indicator that BTC has a promising long-term growth potential.

U.S. venture capital investor, Tim Draper recently declared in a media interview that despite these rocky fluctuations, Bitcoin is part of a "revolution for a better currency that is more secure, decentralized, effective, more useful and global." Draper continued "it's open to everyone and far better than the fiat currency."                

Validation from Traditional Institutions

Although some skeptical investor tycoons like Warren Buffett recently brandished Bitcoin as "rat poison squared", there have been gradual signs that Bitcoin and crypto are being validated by traditional financial institutions. In April, Nasdaq paved the way for established investors to reap the benefits from Bitcoin, by partnering with crypto-exchange Gemini. Major banking giants such as Barclays and Santander are now using blockchain technology for certain foreign exchanges and transactions. There are also rumored plans in the pipeline for other banking and blockchain partnerships.

Goldman Sachs is a holding in Jim Cramer's Action Alerts PLUS. 

Meanwhile, financial heavyweights like Goldman Sachs (GS - Get Report) who were initially skeptical have now created a crypto trading desk. Former Goldman Sachs executive Gary Cohn said of cryptocurrencies: "The world will have a global cryptocurrency at some point." Novogratz also predicts that the New York Stock Exchange will be active in crypto trading market within six months, which should be another long-term trigger for Bitcoin.

Bitcoin Breaks Into the World of Tech

Bitcoin has been gaining ground and breaking into the world of tech this year, which highlights its growing relevance. Since tech buffs are usually more acclimatized to change than older financial institutions, it's not surprising that leading global technology giants like Microsoft (MSFT - Get Report) are now using the Bitcoin platform for certain transactions. PayPal (PYPL - Get Report) has also jumped on the Bitcoin bandwagon and is accepting BTC as a payment method.

• Microsoft is a holding in Jim Cramer's Action Alerts PLUS.

While these new platforms provide more competition for Bitcoin, it also highlights the increasing relevance of crypto for the world of tech and finance. Competition also helps drive more development and long-term growth, so we'll have to see how this pans out for Bitcoin's future.

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