Bitcoin is a digital asset and payment system that was created in 2009. It can be used to purchase goods and services, but bitcoin has been the subject of scrutiny from many financial experts due to its volatility. Bitcoin is often compared to gold because it is a scarce resource with limited supply, making it more valuable than most fiat currencies. In this article, we’ll explore the question: will bitcoin ever reach 100k?
Bitcoin has been on a bullish trend this year. In 2017, bitcoin’s value grew over 700%. Recently, in early April 2021, Bitcoin reached an all-time high of $65,000 – only to drop back down a few weeks later and hover around the $40,000 mark. At any point these coins could shoot up again due to random market movements or bad news around bitcoin.
Bitcoin is designed to be scarce, that makes it valuable. There are only 21 million bitcoins in the world and over 18 million have already been mined which means there just aren’t enough coins for everyone who wants them. The scarcity of bitcoin combined with its utility as a store of value will drive up demand – leading to higher prices per coin and increased odds of future gains during tough times like these.
So, what’s driving this growth? It turns out Bitcoin has proven itself useful not just on Wall Street but also across Asia where investors are using it as their new darling investment asset class due to heavy-handed regulations from China’s central bank to stop money flowing out of the country into overseas investments.
We have seen bitcoin’s price surge when China clamp down on its currency, the yuan. The most recent example of this was in January 2016 when Bitcoin’s value surged from $400 to over $1100 after rumors circulated that China may restrict transactions and make it more difficult for people to buy bitcoin with Chinese Yuan (CNY).
Lastly, as a store of value, bitcoin is an excellent option due to its digital nature which ensures there are no risks associated with storage or possession. Unlike gold which must be stored securely at all times and can easily be stolen by thieves – bitcoin relies solely on blockchain technology where each user has their own personal ‘private key’. This makes it very difficult for hackers or other threats to get access because it is so decentralized.
Bitcoin’s Value & the Future for Bitcoin Investors: A Closer Look at What Might Be Happening in 2017 – bitcoin has been on a steady climb since March of this year and many experts believe that it will continue to rise as more people invest their money into bitcoin. In fact, there are some who think that bitcoin might eventually reach $100,000 because it would then have reached parity with gold prices which currently stand at around $1200 an ounce (though recent dips from China may be affecting this). Their reasoning? If you had bought 200 bitcoins back when they were worth only about $200 each instead of paying for one ounce of gold ($1200), your investment would now be worth almost half-a-million dollars.
The future looks very exciting for bitcoin.
There are many people who think that bitcoin will eventually reach $100,000 because it would then have reached parity with gold prices which currently stand at around $1200 an ounce (though recent dips from China may be affecting this). Their reasoning? If you had bought 200 bitcoins back when they were worth only about $200 each instead of paying for one ounce of gold ($1200), your investment would now be worth almost half-a-million dollars. The future looks very exciting for bitcoin.
The main question seems to center around its sustainability – if and how long can the current growth rate continue? Bitcoin has been in a steady climb since March 2016 and many experts believe that it will continue to rise as more people invest their money into this digital currency bitcoin.
“We can’t see any reason why we would go below the current price,” says Glenn Hutchins, a bitcoin investor and co-chairman of North Island Holdings LLC. “The demand is there…I don’t know what to make of it when people say this bubble’s going to burst.”