Receive all Cointelegraph news immediately in Telegram.
If the Bitcoin supply remains limited to 21 mln units, Bitcoin price could reach $619,047.
Bitcoin first traded in 2009 for half a cent each. In just eight years, it has reached the lofty height of $4,477.
We have witnessed a number of spectacular crashes in the equity markets over the past century.
One of these is the historical NASDAQ crash of 2000-2002, following the dot com bubble. The index fell a stunning 78 percent during this two year period and ultimately reached a 6-year low.
In the years that followed, the market recovered and eventually reached new peaks. Today, it is up 26 percent from its dot com highs, and 486 percent from its lowest point.
This exceptional bear market, and the bull which followed, has made it a regular case study in finance. It’s also a great reminder that no matter how mature the market, crashes and recoveries do happen.
- NASDAQ recovered 482 percent from its lowest point and exceeded its prior highs
Bitcoin derives intrinsic value from the nature of its design. It is censorship-resistant, immutable and cannot be counterfeited.
These qualities make the king of cryptocurrencies particularly well-suited for the demands of an ever-changing world.
Given Bitcoin’s massive popularity and availability across all continents, entrepreneurs are launching products focused specifically on these markets.
Even mainstream media has begun to pick up the torch, with the Wall Street Journal and CNBC covering Bitcoin extensively.
Despite these positive developments, Bitcoin still faces extreme volatility and speculative pressure.
Investors are constantly moving in and out of their trades and this is one of the primary reasons that Bitcoin’s volatility persists.
Financial innovation will eventually bring more products such as exchange-traded funds (ETFs) and regulated futures markets. These will likely put a damper on Bitcoin’s infamous volatility.
Naeem Aslam, Trader and Forbes Contributor, calculates:
“There is a total of 20999999.9769 BTC, or in simple terms, there are nearly 21 mln Bitcoins. Over the coming 10 years, if Bitcoin demand increases by only four percent...you take away away four percent that global demand value (world market capitalization value = $72.3 tln + professionally managed global real estate market = 7.4 tln + global debt = $199 tln + MSCI All Country World Index Market Cap = $50.025 tln), it gives you the price for each Bitcoin at $619,047. However, if the Bitcoin supply goes unlimited, which is feasible - because in August we also had a forking event which gave birth to Bitcoin cash - things would change substantially. The value of new Bitcoin Cash for now is approximately $5 bln. If the supply is not limited, the core foundation of cryptocurrency would shift and a number of elements would come on par with the central bank’s currencies.”
Follow us on Facebook
For updates and exclusive offers, enter your e-mail below.
One fine body…
Thank you for contacting us! We will reply to you as soon as possible.
Thank you for your interest in our franchise program.
We are considering your request and will contact you in due course. If you have any further queries, please contact:
Reset letter sent.
Please checkout your mailbox for password reset details