While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
Bitcoin price is currently well over $50k with an outstanding 66% market dominance making it the highest valued cryptocurrency. The crypto developed in 2009 has seen its high prices realized through the end of 2020 and the first quarter of 2021. The records show an all-time high price of $61.55k, and future predictions lean on the increase in its price up to $100k. Certainly, the BTC rally doesn’t seem to have run out regardless of the 600% price surge since its launch.
Despite recent events of the global pandemic, countrywide lockdowns, market fluctuations, and various economic restrictions, Bitcoin as an asset has been on the rise. There are various reasons why the asset is to reach $100k value based on various reports and analysts’ predictions.
The Rise of Bitcoin
Bitcoin was the first-ever decentralized digital currency introduced in 2009, with its primary purpose serving as an alternative for current loopholes in the financial system. Its initial price was $0, and the first rise recorded in July 2010 was at $0.08. By 2013, Bitcoin transactions recorded were over 10,000, according to BitPay, and in late November 2017, the price surged to $10k. In 2018, BTC experienced the most critical crash, recorded a $3.2k value, and later rose to $10k in December 2019.
Since then, the price has increased with major turning points recorded from last year October. In January 2021, the price rose to $40k, and in mid-February, it surged to $50k. The recent upsurge as of March 13th show its increased price to $60k and hours later recorded its highest price at $61.5k
Reasons Accelerating the BTC Price
Since the beginning of 2020, BTC price surged from $5k to over $20k, and all fostered from two major events:
- COVID-19 pandemic: With Bitcoin assets regarded as a store of value, major institutions have sorted to restore their cash reserves into a digital asset. Such institutions include Square Corp, Microstrategy, and Tesla. The primary reason for this is that its attribute of being a store of value protects the asset from inflation. As the pandemic crippled various economic sectors, the assets’ value increased since it’s preferred to fiat currencies.
- The Third BTC Halving: Bitcoins halving event happens once every four years, and in May 2020, the third halving took place. It cut the mining price from 12.5 BTC to 6.25 BTC. As a result of this halving, the demand for Bitcoin increased due to limited coins in circulation. Also, this event supported the future prediction of BTC reaching $100k value.
As you have seen over the years, Bitcoin’s value has had significant upsurges and declines. However, its price will still increase in the future, reaching new heights of up to $100k. Various reasons support this prediction, and they include:
Comparison with Gold
Bitcoin has many properties similar to gold. Consider gold, it is a global store of wealth, and in this case, BTC is considered “digital gold.” Regardless of Bill Gates warning investors against risking crypto investments, investors indulge in considering BTC for carrying out transactions and payment systems. Janet Yellen, the United States Treasury Secretary, mentioned the digital asset as highly speculative, although crypto enthusiasts consider investing in the cryptocurrency.
From its launch over a decade ago, Bitcoin has raised many questions surrounding its security and other attributes. Most people were concerned about the common malware experienced in digital platforms and servers that included hacking of the asset. Others were concerned about the success of using decentralization, while others wondered if the halving events would destroy the system. It’s safe to say that Bitcoin has proven to work successfully and is impervious to hacking. After 12 years, Bitcoin has successfully proven that it is secure and built on reliable and unbreakable blockchain technology.
The Global Pandemic
Recent events suffered globally due to the coronavirus have exposed the vulnerabilities of the current market system. The downturn in the global economy has been a challenge since the outbreak. BTC proves to be a successful model of both payment and storage of value that reduces hand-to-hand transactions limiting the spread of the virus. Bitcoin’s popularity has increased due to this, and its resistance to inflation makes it a valuable asset in the market system.
Associations with Financial Institutions
Various financial institutions have taken up the use of Bitcoin in facilitating sales and purchases, especially on their online platforms. Institutions such as PayPal, JP Morgan, and even Visa have adopted digital assets by providing crypto services. As a result, its popularity has increased, indulging investors in purchasing Bitcoin, and increasing its value.
Bitcoin’s Liquidity Ratio
Investors prefer assets with a high liquidity ratio since these assets are easily sold and purchased in the market system. As such, Bitcoin holds the highest liquidity ratio among all cryptocurrencies, presenting a reason for its expected upsurge since it is easier to exchange the asset at market price.
Recent surges in the Bitcoin price can be narrowed down to two major reasons: better trust and global trends. These factors support the expected upsurge of the digital asset to an all-time high of $100k in the coming years.
After the steady rally set off in October last year, Bitcoin has soared to new heights where it crossed $20k in December 2020, crossed $40k in January 2021, and hit $60k by March. Bitcoin shows no sign of slowing down. From the analysis of past data on the crypto asset, predictions might be tricky, although you can get an idea of the expected trend, which increases towards $100k. Blockchain experts predict BTC becoming a mainstream asset class, and if trends continue, it will surpass the expected target.
Anthony Pompliano, partner and co-founder at Morgan Creek Digital, supports the analysis and quotes and aggressive price target of $100k in the next year. In his word, “I believe that Bitcoin will reach a $100,000 price point before December 31, 2021. My current confidence level of this happening is around 70-75%.” If his predictions are accurate, BTC’s market capitalization will reach $2 Trillion.