You will be hard pressed to find anyone out there who has heard of the explosive growth of Bitcoin and not be amazed. While many are calling it a bubble I firmly believe that Bitcoin, and cryptocurrency in general, will continue to set new highs for a while to come before settling and becoming more stable in its price making it easier for businesses to accept Bitcoin as payment.
With that said I don’t think it will happen anytime soon. Bitcoin has not even begun to break into mainstream and is even further off from mass adoption. We are in such early stages and that became even more apparent when I was speaking to a friend who is 26 and he has not heard of Bitcoin. I know, hard to believe. It goes to show how we are still in the infancy stages of Bitcoin and cryptocurrency.
So let’s look at 2017 and what leads me to believe we will see a price of $10,000 before 2018.
On the 1st of January 2017 the Market Cap according to CoinMarketCap.com was just over $17 Billion USD. Fast forward to May 1st 2017 and the Market Cap soared to $36.8 Billion USD. That is ~116% increase in 4 months.
Fast forward again to today (17th August 2017) and we are at a $141.8 Billion Market Cap. That’s ~734% increase so far this year with Bitcoin currently holding just over 50% of the market share and current price $4,335.
The explosive growth is due to many reasons but one big factor is the mainstream media attention Bitcoin is getting causing average Joe to invest hoping to strike it rich with digital gold. With that in mind I don’t see the media attention going away, in fact I only see it getting stronger.
So where do I get my price prediction from?
When Bitcoin hits $5,000, which should be any time now, we will see more media attention which in turn will get more everyday people into Bitcoin causing more spikes in Market Cap and Bitcoin prices.
Keeping everything in mind I don’t see any issues with the Market Cap reaching $200 Billion in the next couple of months and if Bitcoin keeps its current market dominance of around 50% then we should see a price of just over $6,000. The % increase needed to go from $6,000 to $10,000 is only ~66% which as we have seen is not a difficult task for Bitcoin or cryptocurrency. With Xmas only a few months out I also expect to see a surge in new buyers who want to take their Xmas money and invest into Bitcoin rather than the latest toy giving Bitcoin a big price jump towards the end of December and start of January.
Am I right? I think so but we have seen crazier things happen. Either way, we are in for one hell of a ride and there is zero doubt that early adopters of Bitcoin and cryptocurrency will be the new generation of rich.