Predicting the Bitcoin’s Future Value

The bitcoin is the most talked about, researched, praised and maligned cryptocurrency in the world. And this is because it has many faces, depending on what features one decides to capitalize on while using it. But one question abounds. What is the fate of its value in the future?

Depending on proponents and skeptics, the price of the bitcoin will either go down or up. So we intend to throw a few suggestions in the air, just to pique your curiosity to learn more about it!

###Why price may move up

Whether it has been spurred by speculation or by its sheer potential, the Bitcoin has been growing in value. This means that if you have Bitcoins today, and you stow them away in your wallet, they could be worth many multiples of their current worth in the near future. From a modest price of $0.0001 in June 2009, the coin is now trading at a whopping $4,600!
For starters, no one knows how much Bitcoin should be worth when it is purely used as currency. However, there are reasons why its uses seem to grow by the day.

-The Scale and Pioneer Advantage; Bitcoin is now big, with a market capitalization of $75 billion (about 35% of all cryptos) and a daily volume of $2.5 billion. This is expected to rise exponentially due to its advantages as a means of exchange and its advantage as the first coin.

-Increase in the number of speculators; The people who have invested thus far in cryptocurrency are early innovators. The late innovators and the laggards are soon joining after the initial skepticism is overran by the technology’s meteoric rise in value. There will definitely be a gold rush soon, and bitcoin will get the lion’s share.

-Increased types of usage; uses like the exchange, crowd funding, stashing of wealth and peer purchasing will make most altcoins a must have. However, Bitcoin will enjoy its rightful place as the storage coin of value and therefore it will be very sought after both for traders and long term speculators.

-Increased complexity in mining; Due to the increasing need for computer power in verification of blocks, it will continue to be harder and harder to acquire Bitcoin through mining, and therefore the few coins in circulation will be very sought after.

-The rise of other crypto-currencies; Since other cryptocurrencies are being developed each day, they will bear the brunt of panic transactions in the early economic tempests. People will rush to look for assurance and security to the Bitcoin before they run back to Fiat, and this will allow it to survive and thrive for many years to come until it stabilizes.

###Why price may move down

Because of the reasons why Bitcoin is being bought at current, it has exhibited a volatile nature. Therefore, its prices fluctuate, even as they grow. And if the oracle of the crypto doesn’t work as the majority predict, we could be seeing a price drop in the future. This could be due to several reasons.

1. Uncertainty over the future of cryptocurrency; This could happen if there's widespread skepticism and consequently lower demand of the cryptocurrency and the advantages they bring.

2. Government regulation; Though unlikely, should economies that are already riding the wave reverse their stand on the usability of the bitcoin, especially with the fears of so many coins finally replacing controllable fiat currency, then there is a danger that buyers will slow down on its uptake.

3. Change of reasons to buy; As seen earlier, the bitcoin is currently being bought by long term speculators and coin traders as the holder of value, much like gold. If altcoins stabilize to the level where consumers feel comfortable storing digital assets in them instead of converting them to Bitcoin, its appeal in this respect could diminish and hence its demand.

###Final Thoughts

To buy or not to buy? Some say the Bitcoin will hit the $100,000 mark in 10 years. Some say it will one day come back down to $3.5. Who knows? The simple fact is that it rose from $0.0001 in June 2009 to $2,700 in July 2017 to $4,900 by end of August. And it crashed to $4,100 in three days a week later and rose again. For now, it is not for the faint hearted, and with all the information you can get on this website and other relevant websites, it is you to decide!

About the Author: While not in the blogosphere, Johnson is a food scientist, crypto enthusiast, nature lover, traveler, and farmer.