Ever since the Bitcoin Cash fork in late August 2017, Bitcoin has been reaching new price-highs.
From the historical $5,000 per one bitcoin, it has already crossed the $6,000 mark in the eve of another fork – Bitcoin Gold.
All that, however, does not seem to be enough for Bitcoin investors as the most recent predictions suggest.
The former Fortress Investment Group Manager – Michael Novogratz – speculates that Bitcoin will reach $10,000 by the end of 2017 or shortly after, giving it the maximum of ten months from now onwards.
Despite what another investment mogul – Jamie Dimon – has been saying about Bitcoin, Novogratz has a strong belief in cryptocurrency and its underlying technology – blockchain.
The Growing Price of Bitcoin
Regardless of various speculations about Bitcoin, and cryptocurrency in general, being about to face a bubble, there is one fact: Bitcoin’s price is continuously growing.
Yes – it goes through its native price fluctuation and volatility, but it has been on a steady rise from the beginning.
While everyone gets excited about Bitcoin reaching new heights and every investor is nervously calculating the Return On Investment, Bitcoin is becoming more and more valuable.
So if you think that $6,000 is too much to pay, in the future, you may be considered as an early investor and take pride in buying Bitcoin at such a low price.
If you bought Bitcoin on January 1, 2017, you would have made a $500 profit by now. And only a few months ago, we were wondering how much more Bitcoin can grow. It turns out, in less than two months, Bitcoin went up by over $2,000.
In a one year period, Bitcoin has grown by 520%, so by the end of 2018, a price could go as high as $30,000 per coin.
Even though this number might be far-fetching, it does nonetheless indicates that Bitcoin will eventually become an incredibly valuable asset.
Bitcoin’s Growing Demand
It is crucial to remember how limited is Bitcoin’s supply. There will only ever be 21 million of Bitcoin, and a little over 16.5 million of Bitcoins are already in circulation – representing approximately $71 billion.
On the top of that, it is estimated that 25% of Bitcoins that are in circulation are gone forever. Some of them are in forgotten wallets, mined with an incorrect code or discarded. This only means that Bitcoin’s supply is shrinking down even more.
Bitcoin’s scarcity limits the possible supply of the cryptocoin even further. And with a limited supply, demand can rise even higher, forcing a price to grow.
There are definitely two sides of the Bitcoin debate and its value. However, Bitcoin’s total market value is over $100 billion, which is more than Netflix, American Express or General Motors.
That on its own signifies how important is Bitcoin for the financial market. With its large utility value, increased accessibility, and high liquidity, Bitcoin will not be swiped underneath the economic carpet easily.
If anything, Bitcoin will keep on growing, together with increasing interest and demand from investors.
So, if you are sceptical that Bitcoin will reach $10,000 by the end of 2017 – don’t. It is no longer a question of if, but of when.
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