Introduction
Bitcoin is currently the most valuable cryptocurrency and one of the hottest assets for investors today. The cryptocurrency is priced at $11,333.83 and analysts think that it will reach $50,000 this year. Bitcoin took the investment world by storm when it reached and passed the $10,000 mark. Now, there are all signs that it will keep going up in value. Read on to discover the answer to, Will Bitcoin Reach $50.000 This Year?
Market volatility
Bitcoin is exhibiting the same behavior that technology stocks did during the boom in the late 1990s. Shares in companies such as Apple and Microsoft were rising in value tremendously in very short periods of time. Fluctuations in the prices of these stocks were frequent and significant.
Today, Bitcoin is exhibiting fluctuations in value of between 70% and 80%. This shows a high level of volatility in the cryptocurrencies market. This volatility is happening because the market is not yet mature. Cryptocurrencies have not yet achieved stability as solid assets worth long term investment. Therefore, the market is seeing quick-fire, opportunistic trading activity resulting in the volatility.
Mainstream appeal
Bitcoin is slowly gaining appeal in the mainstream economy. Many shops and businesses are beginning to accept it as a form of payment. It is even being used to pay for government services in the city of Zug in Switzerland. This gradual acceptance will help the masses understand Bitcoin. As such, it will inspire confidence as a stable investment and its volatility will go down.
Conclusion
While it is quite volatile right now, Bitcoin is slowly being accepted into day to day commerce. This will lead to general understanding of the cryptocurrency and it will see more people investing in it. This will drive up its value over time. Seeing as there is already quite some interest in the cryptocurrency, there will be heavy investment in it. Therefore, Bitcoin will reach $50,000 this year.