Will Bitcoin hit $100k?
Since Bitcoin (BTC) came to the fold, there have been thousands of other cryptocurrencies created. However, as it stands Bitcoin remains the largest and trusted virtual money platform.
When Bitcoin sprung up, it was relatively a low digital currency, but fast forward to 2021 and Bitcoin has gone on a record high of $50,000. Since the turn of 2020, Bitcoin has been on the steady rise, in spite of the ongoing pandemic, Brexit, and not to mention US-China tension. With this upturn in fortune, people are inquisitive to want to know if this cryptocurrency could get to $100,000?
Analyst forecast confidence for Bitcoin in 2021
With this cryptocurrency's steady rise, analysts and experts are quite bullish that before the middle of the year, Bitcoin would have gotten to $100,000. However, JPMorgan (US investment bank) has warned that even though there is a possibility of Bitcoin achieving the $100,000 mark, such achievements might be unsustainable. Furthermore, in order for BTC to match that of the gold market, it must have to at least get to the $500,000 mark. The market technical analyst for this cryptocurrency, Katie Stockton has voiced her opinion that all indications pointed towards a rise based on technical signs.
Traditional money managers looking at Bitcoin
As it stands, many investors, and when we mention investors, we mean some of the world's largest investors have taken the initiative to invest heavily in Bitcoin. Also, some conservative institutions are in on the act as well. All these investors are not investing to get quick rewards, but rather they are all in for the long term.
Take for instance, Elon musk had invested a whopping sum of over $1.5 billion into Bitcoin, and with such investment that speaks volumes. With how institutions are committed to investing large sums of money into Bitcoin, the cryptocurrency availability is being stretched.
Bitcoins wild rally
It is important to know that 2020 wasn't the first time Bitcoin (BTC) had experienced a surge in its price. At about May 2017, the price of Bitcoin went as high as $2000 and a couple of weeks later, increased further to about $3000.
After a couple of months that same year, it rose more to about $5000. Then, before the end of the year, that amount tripled and Bitcoin was just below the $20000 mark.
However, it is important to let it known that it wasn't all a smooth ride to the top, as there were moments when the price would fluctuate. Also, there was a time the price crashed by $300 in less than an hour just a day it sprung up to $3000. These fluctuations have been happening for subsequent years now.
Inelastic supply driving pricing
There are many ways to explain the upsurge in Bitcoin, but we shall look at it from an economic perspective. As things currently stand, miners have signed on 18 million coins, and the normal supply of Bitcoin is pegged at 21 million coins in general. When a good is valued, the pricing of that good is more likely to experience an increase. A lot of people have given their own insight on the look of things. Some have even made it known that the more the players involved, the more the value increases.
5 reasons why Bitcoin prices would likely keep increasing
Where people have suffered economically, especially with the ongoing pandemic, Bitcoin has continued to gain more ground. To this effect, it is important to list down the reasons why this BTC would keep being on the rise rather than drop.
PayPal & Cryptocurrencies: PayPal, the global digital platform that accepts payment made an announcement in 2020 that got people feeling excited. They made their intentions public by stating how they would introduce on their platform the buying and selling of cryptocurrency. This insight didn't end there, as they also let it out that the four traded currencies, which are; Bitcoin, Ethereum, Litecoin and also Bitcoin cash would be made available. With such announcement, the estimated users on the platform which is just above 350 million users would have the privilege of using crypto to make payments.
Easy Accessibility to Public: Nothing makes the public feel at ease than knowing Bitcoin is a legit payment option for them to use. As you would know, this cryptocurrency is a digital currency, and for that makes it a better store of value.
Institutional adoption: Another reason why Bitcoin would keep rising is that many institutes have viewed it as a better option to fight against inflation or market volatility. For that, some top companies have switched their cash treasuries into BTC. This vote of confidence from reputable companies have added more value to this cryptocurrency.
Bitcoin Halving Driven Scarcity: Most cryptocurrencies have limited supply, and Bitcoin is inclusive. In every four years, this cryptocurrency called Bitcoin experiences what is known as Bitcoin halving. The BTC network functions more as a result of having additional new Bitcoin to the market, which is achieved by Bitcoin mining. That being said, with Bitcoin halving, the BTC is made less available or scarce, which makes the price to go up. The more scarce the Bitcoin is, the more interested people would be in trying to purchase it, hence the upsurge in its pricing.
Acceptance from the center: The world is changing at a rapid speed thanks to technology. This effect is also telling on how we handle money with our day-to-day affairs. With this being said BTC which is a digital currency is widely accepted around the globe. As such, the global government is trying to devise a means of having their own digital currency created. As a result of this, many people are keen on acquiring the currencies hence, the prices are likely to be on the rise.
In conclusion, Bitcoin which keeps rising is well set to hit the $100,000 mark as all indications point towards it achieving that milestone. That notwithstanding, there is also every possibility of it being unstable for a while before reaching that estimated mark of $100,000.
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