As everyone already knows, 2018 hasn’t been a nice year for Bitcoin. In the closing weeks of 2017, Bitcoin saw a tremendous rise, with its value skyrocketing to a cool $19,783. However, the new peak was only short-lived as the crypto’s price took a plunge at the opening of 2018. Bitcoin ended up losing about 81% of its peak value during the plunge.
Bitcoin has struggled to keep a stand between bears and bulls ever since. However, the worst of the bear strike came a few weeks back when the price took a dip from the $6,000 range to test the $3,500 level. With that, a significant fraction of its total market cap has also been eroded, and that’s not good news. At the moment, the crypto is battling to keep its head just above $4,000.
Investing In Bitcoin
One risk with investing in Bitcoin is that it really doesn’t relate to any underlying asset or value, meaning that its value is dictated entirely by what other people are willing to pay for it. If people want it more, its value will shoot up. If they don’t, the price could touch down to almost zero.
Although Bitcoin has been in the woods for the better part of the year, it has attracted much more attention this year than ever. The price stagnation could be attributed to people’s skepticism of cryptocurrencies as well as the volatile crypto space.
Can A Lower Price Encourage Adoption?
One thing for sure is that a high-priced digital asset at this time in the development of the crypto industry could discourage its use. In such a case, a lower price could work to its advantage and earn people’s trust. In fact, the current troubles facing Bitcoin can be compared to the bursting of the dotcom bubble back in the 200s. In the burst, Amazon lost over 80% of its share value. Today, the industry has recovered and Amazon is one of the most valuable and expansive entities in the world. The same could be happening to Bitcoin.
How $100k Could Happen
If the above theory proved true, the next decade could see Bitcoin’s price skyrocket as demand rises. Of course, this is after cryptos, in general, have earned popular trust. If the crypto space handles at least $500 billion (roughly 10%) of global transactions, and Bitcoin gets to be used in 35% of them, then things could really look up for the top coin.
Since the total Bitcoin supply is capped at 21 million, it’s easy to see how a single Bitcoin could then be worth $100,000 in this case. However, if things go south and people shy away from using it, the price could plummet to near zero. It’s a tricky investment, but one that could pay off hugely if things to right.