Most adults strongly believe that getting rich quick can only be done in a casino with a little bit of luck. Basically, a person's wealth depends on how wisely he manages his savings.
However, 2017 made many skeptics think about it. The jump in the price of bitcoin in an instant made some crypto-investors rich. If at the beginning of the year the total market value of all cryptocurrencies was $ 17.7 billion, then by the end of the year it reached $ 325 billion.
Such growth in just 11 months is a sufficient reason for many to reconsider their lifestyle and take the risk of investing in a mysterious project called Bitcoin.
What the experts think
Nevertheless, a number of experts believe that the most interesting is yet to come. At the beginning of the year, it seemed incredible that Bitcoin could jump in price to $ 10,000, but this became a reality in November. Despite the current drawdown, there are more and more suggestions in the crypto community that the value of one bitcoin will grow to $ 40,000 next year .
Some are sure that this is not the limit. For example, James Altuscher, an American hedge fund manager and entrepreneur, told CNBC that he is convinced that Bitcoin may well reach $ 1 million by 2020.
Prior to this, the founder and CEO of MGT Capital Investments, John McAfee, tweeted that a limited amount of bitcoins will only contribute to the price increase, and now financial advisers of all millionaires of the planet are advising to invest at least a small part of their fortune in bitcoins.
Million for Bitcoin laugh or reality?
A million dollars for one bitcoin - it may seem ridiculous to some. But do not forget that $ 10 thousand for 1 BTC once seemed an unthinkable amount. This bold prediction has a chance to come true by the end of the decade if four factors come together.
First of all, bitcoin must become a recognized means of payment. Some trading platforms, for example, Overstock, started accepting payments in bitcoins from their customers a few years ago, but this is not enough. If such giants as Amazon did it, the situation would change radically. At the moment, Amazon has no plans to accept payments in bitcoins, but it's worth noting that the company has registered 4 domain names that contain words related to cryptocurrency. Amazon may not be ready to join the crypto community just yet, but is definitely watching the market.
Secondly , the modernization of the bitcoin code and blockchain can make the currency even more attractive to existing investors and those who have not yet been interested in it. This requires that the next updates focus on increasing throughput, reducing transaction times and lowering transaction fees.
Third , Bitcoin will continue to rise amid a weakening US dollar. The falling dollar is fueling assets like gold, which are essentially limited resources. Bitcoin also belongs to limited resources: the total number of its coins is 21 million.
And fourthly , investor sentiment plays an important role in the fate of bitcoin. Since cryptocurrency is not controlled by governments and central banks, it largely depends on the public opinion about it. One positive statement from a reputable expert can be enough for hundreds of new small investors to enter the market.
What could prevent Bitcoin from reaching a million dollars
Still, $ 1 million in 3 years is an unlikely development of events, even under all favorable circumstances. There are two major obstacles to achieving this mark.
To begin with, bitcoin can simply lose its dominant position on the crypto market . It's easy to create your own blockchain and your own cryptocurrency: anyone with the time, money and programming knowledge can do it.
Every month, a couple of hundred new cryptocurrencies appear on the market, each of which is a potential competitor to Bitcoin, and there is a very high probability that one of them will attract the attention of large investors.
Another obstacle is the inevitable decline of euphoria , which is currently gripping the largest trading floors. The market does not forgive those who give vent to their emotions. When a clear market and government policy for bitcoin finally appears, the excitement around it will subside, and the price growth will slow down.
The Topic of Article: $ 1 million for 1 BTC by 2020 - is it real?.