Updated, 12/7/2017, 7:00am PT: Bitcoin's value continued it's upwards momentum yesterday and through the night. As of this update, the digital currency is now trading for more than $16,000 per coin. That's 25% more value than it was 24 hours ago.
Original, 12/6/2017, 10:30am PT:
The price of Bitcoin continues to rise at an incredible rate. Following Black Friday, the price of one Bitcoin topped $10,000 for the first time. Today, less than two weeks later, Bitcoin is trading at a more than 25% higher price.
Early this year, Bitcoin was trading for under $1000, but soon the cryptocurrency started crushing all time high values on a regular basis. In April, the price of one Bitcoin hit $1,300 for the first time, which eclipsed the previous all time high of $1,160 in late 2013. If you had bought in at $1,300, you would have doubled your money in a little more than a month. In mid-June, Bitcoin was changing hands for almost $3,000.
On September 1, Bitcoin nearly hit $5,000 per unit, but the value crashed to $3,100 the following week after the government of China announced that it would impose regulations on cryptocurrencies. We speculated that the dip could be a good buying opportunity for people who have faith in Bitcoin’s future. We would have never guessed that the investment would triple in value in three months, but that’s exactly what happened.
In October, Bitcoin hit the $5,000 milestone, and in November the cryptocurrency soared past $7,500, then past $10,000. Today, Bitcoin is trading for upwards of $12,500.
Will Bitcoin Crash? Experts Don’t Seem To Think So.
The value of Bitcoin has increased in value at a tremendous rate, and many people believe that the bottom will fall out sooner than later. Some people are calling it a bubble; others think it’s a Ponzi scheme. Still, many people have put their faith in cryptocurrency and its potential, including some of the wealthiest people in the world. Whatever your opinion of Bitcoin, there’s no denying that its making a lot of money for the people who own it.
Bitcoin is even producing some of the wealthiest people in the world. Last week, as Bitcoin rose past $11,000, the Winklevoss twins, who famously sued Mark Zuckerberg over the idea of Facebook, became the first Bitcoin billionaires because of their $11 million bet on the cryptocurrency when it was trading for a mere $120 per coin.
The upwards trend can’t last forever, but there’s no telling where it might stop. In the short term, you should expect the price to crash back down to reality. The comments section of Tradingview.com’s Bitcoin page is littered with technical analysis from users that suggests a correction is coming, and likely soon.
The long-term outlook for Bitcoin is of course unknown, but it has great potential to reach heights far beyond what we’re seeing, and financial experts are saying that Bitcoin could quadruple by next year. Michael Novogratz, a former hedge fund manager who bet big on cryptocurrency recently said he believes Bitcoin could “be at $40,000 at the end of 2018.”
Bitcoin has a finite supply. There will never be more than 21 million Bitcoins produced, and even with ASIC miners crunching away at the problem, it will take decades (and perhaps even a century) to uncover them all. As more people invest in Bitcoin and embrace its potential, the price of each coin should rise with the user base.
Tom Lee, a Strategist from Fundstrat, recently told CNBC that over the next 10 years, Bitcoin could reach $100,000 per coin. That sounds like a stratospheric number, but as Lee put it, if Bitcoin is embraced as digital gold and captures just 10-15% of actual gold’s market cap, each coin would be worth $100,000.
And believe it or not, $100,000 is far from the highest Bitcoin value prediction. James Altucher, a former hedge fund manager and current Managing Director at Formula Capital, recently said that he believed Bitcoin could top $1 million by 2020. John McAfee, the eccentric founder of McAfee Antivirus turned Bitcoin-mining-farm owner, also believes Bitcoin will hit $1 million in 2020, and he crudely put part of his anatomy on the line to prove his conviction in that belief.
It appears that the wild ride Bitcoin has taken us on in 2017 isn’t over yet.