As per the recent updates from analysts, bitcoin is going to achieve million-dollar value.
The chances are that it will reach this value by the end of the coming year. Although the reports presented a few months back were expecting bitcoin to reach $500,000 value in 2020. But the recent projections are doubling the amount, and you may find this popular cryptocurrency touching the peaks of 7 figure value.
If you look at the current market trends; Bitcoin is experiencing a crazy ride from the past 18 months. Investors are worried as the leading cryptocurrency is falling down with prices lower than 50% of its remarkable records till now.
But the great news is that stats reveal its rise in the coming year, and it will prove its long-term value by competing for the market variations.
One bold prediction about rising in Bitcoin price was made in November 2017, and at that time, it rocketed to $20,000. But then it went down by almost half the value. For the previous few weeks, it is bouncing between $7000 to $11000. However, most of the time, it is observed to be fixed at $8,900.
As per some dynamic trackers that are continuously monitoring the performance of Bitcoin, the price of this cryptocurrency is currently ahead by almost 20% from what it was expected to be.
The scenario for Bitcoin’s $1 million estimates:
The overall supply of bitcoins is restricted to only 21 million. Out of that cap, the cryptocurrency market has already lost 36% unmined coins. The estimated amount of this loss is somewhere around 7.56 million bitcoin units; note that, it is inaccessible to the investors due to some human errors. Hence, the current value of bitcoin in the market is around 13.77 million tokens. It is expected that it will last up to the end of the year 2140.
Now, let us consider the case when one BTC costs $1 million. In this case, the total market capitalization for this cryptocurrency will be $13.44 trillion. With this, the Bitcoin network will get richer than the combined worth of China and few largest companies including Facebook, Apple, Amazon, and other top 50 billionaires in the world. BTC will even share around 11.7% of the world’s GDP, 32.5% of the overall money supply and 19.5% of the global stock market.
This process needs more stable and higher demands of Bitcoin in the coming future. Note that, this digital currency has deflationary nature, and it means the purchasing power may automatically boost with time. Also, the supply rate for Bitcoin reduces by some extends after every four years. It is a part of the popular theory of demand vs. supply that is applicable to all assets on a real-time basis.
In order to reach the highest expected value of $1 million, Bitcoin must displace various mainstream assets. If we look at the stats, more than 1.7 billion people around the world are not able to access any banking service. But on the other side, 2/3rd of the current population is actively connected to the internet via their smartphones. Hence, we can say that people can make financial transactions easily with the help of smartphones as compared to the bank.
With bitcoin, people living at farthest corners of the world can avail direct access to goods and services by using digital transactions.
Economically weaker countries:
While discussing possible growth in this cryptocurrency, we should also talk about the economically weaker countries as well. At present, Zimbabwe and Venezuela are experiencing worse phases of hyperinflation due to some poor political concerns. In such nations, people have lost their national currencies, and many of them adopted for BTC due to its government independent operations.
Other than this, digital currency also serves people who want to get rid of capital restrictions and wish to bypass stricter investments. Bitcoin history is loaded with many such cases. Wide range of people all over the world these days are shifting to cryptocurrency to ensure restriction free investment opportunities.
People that are in trouble due to national currencies consider Bitcoin as the most valuable solution to meet their financial needs. Many experts are working hard towards the development of sophisticated tools for bitcoin trading. The financial firms are also preparing to adopt bitcoin, and all these activities will naturally strengthen the $1 million projection for Bitcoin.
Some analysts also believe that in order to make Bitcoin acceptable worldwide, the regulatory authorities also need to show a positive attitude towards cryptocurrency. The fact is that people cannot adapt bitcoin fully until the national representatives keep on spreading negatives about it. In case if people are threatened against bitcoin, it may soon become an asset for criminals. In simple terms, regulations can play an essential role in the rise of Bitcoin as the world’s most valuable digital currency.