Bitcoin is dominating the financial world breaking records every month throughout 2017.
Ever had a case where you wished you had bought something in the past that eventually went up significantly in value? Perhaps a plot in a low-value district which is now worth ten times more? Well, then you need to see how well Bitcoin investors have done in the past few months alone.
Bloomberg interview. “Bitcoin price predictions of between $100,000 and $1 Million per coin.” Source: https://www.youtube.com/watch?v=e6KRp91YAw8
In January 2017, Bitcoin hit $1000 and the world took notice. 5 months later Bitcoin doubled its value to $2000, and the media started filling up with stories of self-made millionaires who made their money from investing small amount of bitcoin. Another two months after that, Bitcoin shocked the world by tripling its value to $6000, only to increase one month after that to the staggering value of $8000.
At the time of writing these lines, Bitcoin has already reached the $13,000 mark, and it seems Bitcoin is hitting new highs even more frequently now.
In part, it’s simple math: the jump from $1,000 to $2,000 is much steeper in percentage terms than from $12,000 to $ 13,000. Still, as Bitcoin surpasses each new symbolic value, it attracts more attention, and with more attention comes more demand, and so its value continues to rise.
Billionaires such as PayPal’s founder Wenses Caseres confidently say Bitcoin can reach as high as $1,000,000 in the coming years, while software giant John McAfee publically predicted Bitcoin prices to reach as high as $500,000 by 2020, That would require an 800% increase per year, and with 2017 exceeding all predictions for Bitcoin value, their forecast for 2018 and the years to come for Bitcoin does not seem farfetched anymore.
THE ADVANTAGE: BITCOIN HAS LIMITED SUPPLY
The main idea behind Bitcoin and why it makes so much sense is very simple. Normal currencies are controlled by governments, who are able to print money when they need it. By doing so, they can cause the value of their own currency to go down overnight, for example, when they need to repay a debt. Bitcoin is solving this issue by completely removing the government’s control from this equation – meaning, there’s no central bank or government which can print Bitcoin. Moreover, Bitcoin was created with a mathematical limitation to the number of Bitcoins that can be created, and so it creates an economy where no government can intervene. With limited supply and a constantly rising demand, the moor people buy bitcoin , the more its value is going to rise.