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If you have been in the Bitcoin and cryptocurrency space for some time now, you will notice the price of Bitcoin, just like most other cryptocurrencies have seen fluctuations. Bitcoin celebrated its 10th birthday this month, what has it achieved in the past 10 years? What can we expect in the years ahead?
In this section, we will discuss the current price of Bitcoin, a brief history of how it has gotten here, future predictions, the things that impact its price and how investors, traders, and enthusiasts should approach Bitcoin.
Current Bitcoin price
Currently, Bitcoin is trading at around $6,500. This current price is also one of the most stable ever since its hike at the start of the year. However, the current Bitcoin price is surprising to many who had expected the coin to make major moves ever since its all-time high. Nevertheless, given the highly unpredictable nature of Bitcoin, even those who had once made accurate predictions have seen their recent predictions fail to come true. Many predicted Bitcoin to take another run by June/ July of this year. Before we look into some more predictions, let us take a look at the price history of Bitcoin.
Bitcoin price history
After its creation, Bitcoin traded for as low as $0.003 and was only accessible on Bitcoinmarket.com. Four months later, Bitcoin grew over 1000% trading at over $0.08 per Bitcoin. The price of Bitcoin since then grew and it made its first major break in July 2011 at $31.
A few months later, Bitcoin saw its first “crash” which saw the coin trade at $2. By April of 2013, the price rose again and was trading at yet another record price of $266. Then after, Bitcoin broke through $1000 by November of that 2013 before correcting at around $200.
The next big move was in May of 2017 when the coin first tested $2000, hitting another milestone followed by another Milestone in September of $5000. The rest is History as, by December of 2017, Bitcoin was trading close to $20,000.
Bitcoin price predictions
The price prediction of Bitcoin has ranged from $0 to $1 M as both believers and naysayers have given their take as to what direction the coin is going to take. Below, we will look at some of the most popular predictions on the price of Bitcoin.
Joe Davis – $0
Joe is an economist working as head of Vanguard’s investment strategy group. According to Joe, Bitcoin is not a good store of value given its very high volatility and is based purely on speculations.
“As for Bitcoin the currency, I see a decent Probability that its price goes to Zero”
Kenneth Rogoff – $100
Rogoff who is a former head of the IMF (International Monetary Fund) predicts Bitcoin to drop to as low as $100 by 2028. He thinks the increasing value of Bitcoin is based on Money laundering and tax evasion as he sees no actual usability of the coin.
“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now. I would see $100 as being a lot more likely than $100,000 10 years from now”
Thomas Lee – $25,000
Tom Lee, one of the prominent figures in the cryptocurrency space sees the price of Bitcoin hitting $25,000 by the end of the year. Lee believes the price drop from its all-time high was caused by uncertainty within regulations and a bearish market.
“The reason Bitcoin looks really good here is the cost of mining around $7000 fully loaded. And the difficulty is rising. So, by the end of the year, it’s going to be $9000. We still think Bitcoin can reach $25,000 by the of the year or something like that”
Bobby Lee – $60,000
Bobby Lee, the head of Bitcoin Foundation believes we can see bitcoin trading at around $60,000 by years end. He believes Bitcoin might as well hit $1 M if we see the market cap of Bitcoin hit $1 trillion.
“When Bitcoin passes the $60,000 price level in the coming years, it’ll reach a total circulation value of $1 trillion. That will be a huge milestone for $BTC, and it’ll lead to more price stability, higher liquidity and even faster adoption worldwide. Virtuous cycle”
Furthermore, the current IMF chief, Christine Lagarde in her speech at a Singapore Fintech conference urged banks to consider creating their own cryptocurrencies as she believes failure to do so will see banks a lose their popularity to current cryptocurrencies.
“I believe we should consider the possibility to issue digital currency… There may be a role for the state to supply money to the digital economy” Christine said during her speech.
Who and what drives the price of Bitcoin
Bitcoin’s price, unlike fiat, does not depend on a central institution. Its price is determined by what the other person is willing to pay for them. Here are a few determinants of the coin’s price.
It is not unusual to see different dollar prices for Bitcoin when browsing through websites and exchanges. This is because Bitcoin is never traded in one exchange but rather multiple exchanges with each setting their own averages based on trades made on such exchanges.
The price of bitcoin is also very much influenced by the liquidity in the market. Just like the law of demand and supply, the more bitcoin in circulation and the greater the sell orders over the buy orders, the lower the price of Bitcoin could be.
“Hype” and Crackdown
The price of Bitcoin is also very much controlled by the media and the hype or crackdown surrounding Bitcoin at a certain point in time. Media hype is arguably one of the reasons we saw a spike to its all-time high. This means news and media attention is one of the biggest influencers of Bitcoin’s price. However, whenever institutions such as the SEC, governments or influential people crackdown on cryptocurrencies, it most of the times, leads to big sell-offs which cause its price to drop.
Nevertheless, we expect to see an increase in adoption of cryptocurrencies next year. This means we can expect to see many more people investing and trading in cryptocurrencies for their first time. We also, expect to see many institutions investing and offering services in Bitcoin. Nevertheless, an increase in adoption doesn’t necessarily correlate with an increase in Bitcoin’s price. Therefore, based on the above determinants of the price of Bitcoin, you now have an overview of when to buy or sell cryptocurrencies. Last but not least, though many may have very bullish predictions for the price of Bitcoin, it is always good to educate your self before investing in any asset.