Will Bitcoin Ever Reach $1,000,000?

Posted on: May 10th, 2019 by jms No Comments

 

I recently read an article on TradingView.com that predicts the price of a single Bitcoin will reach $1,000,000 by the year 2028, at the latest.

 

The article offers a few reasons why, but I’d like to focus on just 1 point that was made in the article.

 

Looking at the red line in the chart above the author asks…

“How high is the probability that Bitcoin will follow a course along the red dotted lines?”

 

The author goes on to say…

“The entire crypto market must collapse. For this case the market is already too large. I am writing this because many people compare the crypto market with the tulip market hundreds of years ago. The cryptomarket is no longer a closed system. It is a global phenomenon with market power.”

 

The author’s assumption is very true. Bitcoin is no longer a closed system. It truly is a global phenomenon with real market power. We can no longer compare Bitcoin to the Tulip Mania. The Tulip Mania was an isolated event that occurred in one region of the world, and when the crash happened the price of tulips never rose to extremes again. The events of the Bitcoin bubble may have started out following a similar pattern as the Tulip bubble, but it hardly ended in the same way. Here are 3 very distinct differences.

 

  1. The price of Bitcoin came crashing down after the initial craze hit the mainstream, but all hope was not lost. The prices of Bitcoin are rising again and major investment firms are now starting to get involved long after the crash.
  2. Bitcoin offers a utility that has major banking institutions reconsidering the way money is transferred. Cryptocurrencies are not pretty flowers that will eventually wither and die. They are part of a breakthrough technology that will likely become a new norm soon enough.
  3. Bitcoin is part of the global market now. It’s not isolated to a single region. There are systems in place, and being improved every day, that are making it easier and faster to make transactions with Bitcoin and other altcoins at a global scale.

 

To top it all off, large investments are still being made to mine for new Bitcoins, with mining prices ranging anywhere between $531 to $26,170 around the world. So while the mainstream craze that caused the price of Bitcoin to skyrocket and crash may be over, the sentiment towards Bitcoin as a real investment option still exists.

 

 

But with all this in mind can we really justify a valuation of $1,000,000 by the year 2028 for a single Bitcoin?

 

What’s your take?

 

Will Bitcoin price ever reach $1,000,000 USD?

 

 

 

References:

 

Why will 1 Bitcoin really be worth more than USD 1 million?, TradingView, 15th of April 2019,
Website Link

 

Dutch Tulip Bulb Market Bubble Definition, 26th of April 2019,
Website Link

 

Here’s how much it costs to mine a single bitcoin in your country, Market Watch, 11th of May 2018,
Website Link