Future of Bitcoin
Some speculate that Bitcoin and other “cryptocurrencies” will compete against Credit Cards in the next few years. Others believe it will be a ‘vanity asset’ that has no supreme practical purpose, yet it will still be highly sought after (such as a Berkshire Hathaway stock). Some argue that Bitcoin has no practical use case, that it’s too slow and expensive to transfer in small amounts. Others have faith that the Bitcoin Core (the code) will grow over time to allow faster transactions and cheaper fees.
This coin is generating massive momentum, and the price is not going down any time soon. Let me explain the future by sharing the past. Years ago, if a negative news article came out about Bitcoin, it would correspond to a noticeable drop in its value. In the early days, this cryptocurrency saw so many drops because negativity and fear (Fear-Uncertainty-Doubt) crept into the minds of its users and created tension. When Mt.Gox was hacked, and when so so so many coins were stolen, Bitcoin dropped. Many people thought, “That’s it. Bitcoin is dead. Party over.” It stayed at $300 for a couple years. Everyone who saw it at $1000 thought they missed out on selling it at its peak. Some people ‘settled their losses’ by selling at $300 and moved on to other digital currencies.
Then Bitcoin came back… really fast. It went back through $1,000 then $2,500, then $5,000. This happened faster than newspapers could release cover stories!
Right now (as of writing – Dec. 2017) the coin is sitting just below $11,000. It’s not going to stay here for long. It will drop due to some FUD, or it will spike again and encroach $15,000. This party is nowhere from being over.
“But … Bitcoin could crash again! It’s a risk! Right?” Yes, but not as much as you think.
Yes, it is a risk. If the year 2014 plays out again, (with a 10x modifier) it would be expected to crash back down to $3,000 and stay there for awhile before eventually spiking up to $110,000. However, markets are not predictable. And what I can say with confidence is that Bitcoin is less likely to crash 75% now than compared to 3 years ago.
Why is that? Investors! There are so many big investors in the crypto-game now compared to 3-4 years ago. There are so, so, so many people waiting for Bitcoin to drop like crazy just so they can gobble up “cheap coins”. The stronger the investment power, the more difficult it would be for the coin to drop. You see, let’s say the coin drops 50% over one week. Now we’re at $5,500 each. There will be so many people to see this as an opportunity to finally get in on the game. People will buy, and the market will surge. The more buyers = the higher the value.
There are too many people hoping for a 6-figure Bitcoin for them to allow this coin to drop very much.
Where will Bitcoin be in a few years?
Many well-respected minds see Bitcoin easily reaching the 6-figure range a lot sooner than you’d expect. Bitcoin has no concrete value right now; everyone who is a part of this industry determines the value by buying and selling. Some think that Bitcoin is worth 6-figures, but the market just has not realized it yet. Some people are dumping all that they can into the coin, waiting for the day when news headlines show $100,000!
Going further, there are some who think $100,000 is still “cheap coins” because their eyes are locked on 7-figures, million-dollar coins.
Adoption & Use
I do not know the source of this data, but I’ve consistently read lately that (as of writing this) Bitcoin only has a 0.12% adoption rate. That means of all the people alive, only about one in one thousand owns any. What happens if suddenly a quarter of the population wanted some coins? Now this is very sketchy math, but if you amplify 0.1% to 25%, that’s hypothetically a 250x increase in value… Ready for the math? That’s a hypothetical $2,750,000 per coin. Now THAT is where the minds of Long-Term Investors (Aka “HODL”ers) is at.
What do you think?
Regardless of what happens, Bitcoin is not going anywhere anytime soon, and even though investing in this currency is a risk, most consider it to be a good risk to take part in. Keep reading below!