The price of Bitcoin
The price of Bitcoin has come back near the level of the gold price. This happened when Japan decided that cryptocurrencies are a valid form of payment. At the time of writing this post, the price is around 1,217$ USD, so it is a good sign.
The price change direction often, and react on events that happen on the Bitcoin ecosystem. When a bad situation occurs, the price is going down or up. I follow the price since the summer of 2016, and I saw the price fluctuate between 800$ USD and 1,250$ USD.
Some events that caused the price fluctuation since last year:
- The demonetization of the money in India.
- Hyperinflation in Venezuela
- High volume trading in China.
- Regulation in China to control the trading exchanges.
- Japan recognizing cryptocurrencies as a valid form of payment.
The factors that will increase the adoption of Bitcoin
What factor do you think will help the price of Bitcoin increase in the next couple of years?
- The remittance industry: People love to send money back home to help their family. So transferring value with a cryptocurrency like Bitcoin can reduce the fees.
- Political uncertainty: Around the world, many problems happens like the war in Syria, the tension between USA and Russia. Cryptocurrencies can help to reduce the risk on your investments and keep your wealth with the concept of the store of value.
- Smartphone penetration: The use of a smartphone will increase around the world. Furthermore, the non-cash transactions will increase with smartphone wallets.
As you make know the supply of Bitcoin is set at 21 million. This is a good feature implemented, you cannot have more or less, but only what is set in the Bitcoin protocol. People often use the term digital gold to represent Bitcoin.
At the moment, before the next halving, 12.5 fresh new Bitcoin will come into the network every 10 minutes. Around 2030, the money supply will be around 20 million. The more people involved into Bitcoin, more the price should increase.
Bitcoin is like gold, you should be aware that finding gold is hard in nature, the same is true for Bitcoin.
Bitcoin has been the most popular dominant cryptocurrency over the last 8 years. Many times, during the short history life span of Bitcoin, people predicted the dead of this cryptocurrency from events like:
- Trading exchange being hacked
- Money use to finance the terrorist
- Scaling debate
You know what happen? Bitcoin has survived and today it is stronger. Lately, I read a lot of good news like:
- Bitcoin has reached over 1000 ATM around the world.
- Million of active Bitcoin wallets.
- The increase in the number of Bitcoin transactions.
- Cryptocurrencies regulations.
- The increase in the number of the stores who accept Bitcoin.
I can’t predict the price of Bitcoin in the future. I think it is a good investment opportunity to have in your portfolio. You should not miss the train and regret it later.
Do you think the price of Bitcoin will continue to rise to the sky?