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Bitcoin is no doubt the oldest and most valuable cryptocurrency in the market. Since its launch in 2009, it has been getting from strength to strength.
Currently, it accounts for 30% of the total cryptocurrency market valuations with its value exceeding 1 trillion dollars. This makes It bigger than some prominent global companies. A single bitcoin is currently trading at an average of 60,000 dollars.
As the market leader, Bitcoin has set the pace for an industry that now has thousands of cryptocurrencies in circulation. Thanks to Bitcoin, the world now understands what decentralized money is.
The price of Bitcoin
The Price of bitcoin has always been a matter of concern across the investment world. Initially, when the cryptocurrency knowledge was limited, the majority of the analysts considered it as a fake scheme meant to siphon money from naïve investors.
Some even predicted the coin could fail in the long term due to a lack of any financial ethics.
However, over a decade later, the coin remains strong with more investors than ever before. The price keeps hitting new milestones year after year.
After the recent rally, investors are now focusing on the sentimental price of 100,000 dollars. There is a general feeling in the market that it is no longer a matter of if but when bitcoin will get to this price.
Supply is a key element that influences the price f bitcoin. It has a hard cap of 21 million coins out of which 19 million coins are have already been mined.
As an element of price, supply is key in determining how far the price of Bitcoin can get. This means there are only 21 million bitcoins to serve a global market of 8 billion people.
With the demand for the coin increasing, the supply cap will only trigger the price to rise further. Getting to 100,000 dollars needs at least 50% price gain from the current levels.
As more institutional investors put money in the coin, this will only pressure the price to rise further.
Recently, there have been some government regulatory activities indicating support for the coin. The major such action came with the adoption of Bitcoin as a legal tender by the government of El Salvador.
The country has since been using it to facilitate transactions through a dedicated wallet. If successful, this will act as an example of how other governments could adopt the asset.
US regulators have also given the go-ahead for a first Bitcoin ETF. These actions indicate governments are slowly accepting the existence and importance of bitcoin.
With the required legal support, Bitcoin is likely to keep rising and more people use and invest in it. Ultimately, this will lead the coin getting to $100,000.
Bitcoin maintains the advantages of market leadership. Since it was the first cryptocurrency in the market, most investors consider it the safest to put their money in.
It is also readily available in almost all trading exchanges making it easier to trade due to accessibility and acceptability.
These characteristics are strengths that are critical in growing its price making it a possibility of getting to the $100,000 price tag.