April 6th, 2018
Getting rich quickly, for the most part, is somewhat of a myth. Wealth is something that is built overtime, throughout someone’s life, by making smart investments. Stock markets for instance, gain around 10% annually, including reinvestment and inflation. But 2017, was a huge exception to this. Bitcoin was making news almost every single day and its price trends were successful in garnering the attention of many investors. The market cap of all cryptocurrency at the beginning of 2017 was at $17.7 billions, but the end of the year it had crept up to $325 billion. This is a good return of about 1700% in just 11 months. For some people, that’s a lifetime worth of gains that were generated in less then a year.
Many investors want to know if Bitcoin can reach $100,000 in the future, this is a huge milestone that Bitcoin should be reaching soon. Currently, the price of Bitcoin is hovering just around $10,000 and experts believe the party is just getting started. To date, price trends for Bitcoin aren’t looking so good, but the price is expected to increase by the end of the year. Last year, some Bitcoin bulls started projecting that the world’s most popular cryptocurrency would hit $40,000 by the end of 2018. For some people it’s hard to believe, but only time will tell.
Many more experts and Bitcoin researchers are claiming that Bitcoin makes a run at $100,000 by 2020. As of right now, it seems to be a dream, but you never know. Bitcoin’s popularity is increasing and its acceptance among top businesses around the world is growing. There was a time when Bitcoin was hardly known or had a following, but now, almost everyone is aware of this digital currency. People these days are showing interest in this new currency, and this is helping its popularity grow.
First, the acceptance of Bitcoin as a form of payment needs to be expanded on an enormous scale. Retailers such as Dish Network, Overstock.com, and many more have already started accepting Bitcoin as a major payment system for their goods and services. When such popular and large scale businesses can accept Bitcoin, why can’t medium or small scales take a bit of risk? This will be a huge game changer and will drive the attention of younger generation to this new currency system.
Secondly, the updates that this digital currency are making and to its Blockchain have to pay immediate returns. The Blockchain is a decentralized and digital ledger that is responsible for recording all transactions efficiently and securely, without involving banks or financial institutes. Recent upgrades have focused on boosting Bitcoin blockchain capacity, thereby shortening transaction fees and settlement time. If future upgrades continue to garner popular interest, Bitcoin can make a huge impact.
Thirdly, we have to see continuous weakness in the US dollar. A failing US dollar generally makes investors hold on to their cash and to safety assets like gold, which is a finite resource. Bitcoins cap out at 21 million units, giving the sense of finiteness in the eyes of many investors. With dollar weakness, it may spur a continuous Bitcoin buying trend that will help the currency reach almost every household in the world.
Lastly, it is important to have retail investors’ emotions to drive the price of Bitcoin higher. Since no central bank or governments back Bitcoin, it relies heavily on the excitement, confidence, and trust of retail investors to push its price per coin higher in the market.