In 2017, Bitcoin caught the attention of most investors and especially when the price of bitcoin skyrocketed in just a matter of months. Bitcoin started the year at $963.38 and ended at $13,850.40 for a gain of 1,338 percent. At one point in December 2017 the price reached the $20,000 level. As a result of this increase in value, Bitcoin and other cryptocurrencies got an unprecedented media attention and at the same time millions of people started venturing into cryptocurrencies. With an ever increasing in popularity, more cryptocurrencies with different features have been created. As cryptocurrencies becomes mainstream, the value of digital assets like Bitcoin will continue rising. In particular, Bitcoin is expected to skyrocket and experts are pointing out that very soon the price might hit the $100,000 level. Others are suggesting that in the coming years the price of Bitcoin can rise to a whopping $1 million but I suspect that was meant to get the media attention. However, these are some of the reasons why Bitcoin might rise to $100,000 in the long run.
1- Stability and security
The US dollar is the safest currency in the world and this stability is based on the faith we have towards the US government. However, this does not mean that the US dollar is immune to factors like inflation and as a result, the dollar still has many flaws and inefficiencies. But since Bitcoins are not controlled by any governments or entity, they can be more stable and reliable and as a result, most people use Bitcoins as safe haven asset in times of economic troubles.
2- Only a total of 21 million Bitcoins will be available
From the creation of the Bitcoin infrastructure, it was planned that only a total of 21 Bitcoins will ever be mined. The first Bitcoin was initially mined on January 3, 2009 and since then we already have 16.8 million Bitcoins in circulation. As you can see from these numbers, it is very clear that we have few Bitcoins that are yet to be mined. On top of this, as more bitcoins are mined, it always becomes mored difficult to mine because after each halving event, the reward for mining bitcoins declines by 50 percent. This makes bitcoin a very scarce commodity and based on the law of demand and supply, scarcity wilL only accelerate the increase of the price of bitcoin.
3- Increased flow of institutional capital
Many financial and investments institutions have showed a lot of interest in Bitcoin recently. Banks, hedge funds and other institutions are buying large amounts of Bitcoin and this is increasing the demand for Bitcoins; it is projected that this buying spree by the institutions will continue for a while and this will push the price of Bitcoin further on the upside.
4- Increase in Bitcoin popularity
What makes Bitcoin very special from other cryptocurrencies is that it was the first crypto asset to be invented. Over the years, Bitcoin has been accepted by businesses and investors all over the world. At the same time we have had a constant media coverage and out of this attention from the media, most people are now familiar with Bitcoin and it has already become a mainstream asset that is well understood by most people. New infrastructures have been created to facilitate transactions that are based on Bitcoin and this has attracted many people who are also eager to cash on this hype. As a result Bitcoin has gained a lot of traction and this will further contribute to the increase in the price of Bitcoin probably to the $100,000 mark.
These are just some of the few arguments that supports that the price of Bitcoin might end up reaching $100,000. It is very clear that Bitcoin is in a very strong upward move and there is a lot of momentum behind this move and in the coming years, Bitcoin will hit record prices and it might be a matter of time before we have a $100,000 Bitcoin.