Think the rise of Bitcoin to $8000 is impressive? Try $500,000
Complex Made Simple

Think the rise of Bitcoin to $8000 is impressive? Try $500,000

Think the rise of Bitcoin to $8000 is impressive? Try $500,000

Experts were wrong before, but canyou ignore predictions like 1 Bitcoin reach half the price of a luxury villa in Dubai?

  • Bitcoin surged on Tuesday past $8,000, down from $8,337, but still 60% over last month
  • When on Monday the Dow plunged 617 points following US China trade fears, BTC skyrocketed in value looking more and more like as a safe haven asset
  • An $8 trillion dollar Bitcoin market cap will give each coin the value of ~$500,000

FOMO is in full stride. Are you lip biting for missing a nearly 100% rally, when you failed to buy at $4,200 at the start of April, when Bitcoin (BTC) antagonists and bears had their “I told you it’s a fad” fingers pointed at would be investors like you?

You’re going to need more that lip reconstruction surgery if you miss this boat or bandwagon, according to many experts who are claiming the roads to get-rich quick will be paved in gold if you buy BTC.

But first let’s understand why the sudden rise of BTC

High marks for BTC

Bitcoin surged on Tuesday past $8,000, down from $8,337, but still 60% over last month, trading at its highest level in nearly a year.

The total capitalization of all digital assets in circulation hit $243 billion on Tuesday, while an average daily trading volume reached $107 billion, according to FX street. 

Bullish experts tell CNN that the strong showing could signal that Bitcoin has a future as a worthy investment opportunity, despite a volatile past and sketchy history.

Dan Held, co-founder of Interchange, a company that advises businesses on how to manage their crypto assets said the currency's resurgence might be the first inkling that it holds weight as a "risk off" trade — an investment treated as a safer bet when markets are tumultuous, like bonds or gold.

When on Monday the Dow plunged 617 points following US China trade fears, BTC skyrocketed in value looking more and more like as a safe haven asset.

"It's Bitcoin's moment to shine when people momentarily give up on the government or the banking system," Held added.

But it wasn’t momentary. BTC continued to climb early Tuesday even as the major indexes did well, and it held steady for much of the day.

Why more of the same is expected

In the history of cash, governments like Germany in WW1 printed so much money that devalued national currency spirals downwards. More recently, Venezuela devalued its bolivar by 95% to tame rabid hyperinflation.

“Entire life savings can become worth next to nothing in just months. Being uncorrelated to any fiat currency or other asset class on the planet, cryptocurrencies like Bitcoin can be used to escape from national economies in a way not previously possible.

“Bitcoin, even during the worst days of the recent bear market, often represented a better bet than currencies of some of governments.”

Also, Bitcoin and Blockchain offer the unbanked access to banking facilities from anywhere via a mere smartphones or currency exchange outlet.

But could manipulation be at play here, similar to what was suspected in the run up to $20,000 in December 2017?   

But the most likely fact for the rise is that the ledger behind cryptos in general, blockchain, is becoming getting more mainstream. JPMorgan Chase,  announced a new digital coin earlier this year. JPMorgan and Microsoft recently announced plans to partner and expand on blockchain platforms. And ICE the owner of the NYSE, launched a futures exchange for bitcoin and other cryptos.

Where the BTC ceiling?

Level’s Josh Rager notes that over Bitcoin’s three completed cycles, the trough to peak gains decreased by around 80% each time, which is a concept defined by the law of diminishing returns. “As Rager notes, 2011’s rally saw a return of 320,000%; 2014, 58,500%; and 2017, 12,000%. Thus, if history is followed to a tee, BTC will rally by 2,400% off its bottom, giving it a potential high of just shy of $80,000,” reports EthereumWorldnews

As reported by Ethereum World News in early-March, crypto personality $carface notes that if BTC continues to follow its multi-year trends of boom and bust, the asset could appreciate to $102,000 and to $336,000 if it follows historical trends of rallying 5.1 to 16.89 times higher than its previous peak.

Moreover, some are sure that in the next couple of years and decades, Bitcoin will begin to absorb some of gold’s market capitalization, which sits at $8 trillion. An $8 trillion dollar Bitcoin, as American investor, hedge fund manager, and CIO of Morgan Creek Capital Management, Mark Yusko speculates, will give each coin the value of ~$500,000, writes EthereumWorldnews.

Author
Hadi Khatib

Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it. [email protected]

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