According to California-based hedge fund The Laureate Trust, bitcoin is expected to surpass PayPal in the amount of financial transactions this year. The volume of bitcoin transactions achieved $300 million per day.
The Laureate Trust expects that bitcoin could escalate by 50% in price in the near future and is likely to pass PayPal in transaction volume.
The Laureate Trust chief executive officer, Peter Tasca, commented: “Whenever you have an instrument that trades over 300 million US dollars a day, it must be recognized. The digital currency works, Bitcoin has greater volume transactions than Western Union and we anticipate it will overtake PayPal later this year.”
He also added: “We’ve seen governments all over the world impose restrictions on the currency and that is good. In a free market economy this creates a safe trading environment and reduces the volatility Bitcoin holders have experienced in the last six months. This digital currency was meant to facilitate the exchange of currency to be spent, not traded.”
The recent Mt Gox collapse, provoked by a theft of about half a billion dollars in bitcoin, brought new opportunities for digital trading firms. The companies became better regulated and financed.
It is forecasted that bitcoin will continue to increase in value.
Introduction of Circle.com, a consumer finance company focused on providing secure, simple, and less costly technology for storing and using money, is an important stabilizing factor for bitcoin. Tasca said he would like to see a larger number of companies like Circle. Still, its will not be so positive for PayPal.
“Circle.com has some very large backers and we expect them to continue to make tremendous progress in utilization of Bitcoin. I expect in the next 2-3 years we will have the option to have a Bitcoin debit card which is a tremendous opportunity for Circle.com. Globally debit cards account for nearly 30% of all spending, the consumer wants to remove bank processing and currency exchange fees and right now Circle.com is offering the consumer an easy way to use Bitcoin without the risk that is currently associated with the digital currency.”
The Laureate Trust company, which provides expert portfolio management, is based on four principles that include diversification, technical analysis, trend following and risk management. Due to this trading strategy approach, the firm returned a 10-year average of +31.6% per year. In 2013, this strategy returned +23.01%, net of all fees.
In 2014, the company introduced a Referral Fee Programme that involves payment of 2% of the initial deposit and a management fee. Tasca said: “We want our partners to benefit from every bit of success they help us generate.”
The Laureate Trust, a leader in mutual fund management, can generate revenues either in a rising or falling market.