As the fastest ever-changing financial asset continues to gain traction at the speed of light, renowned financial data media company, Bloomberg Intelligence gave critical insights on why bitcoin, in just about five years’ time, could hit a valuation of $100,000.
The report said:
“Bitcoin’s foundation is firming for further price advances, if its history is a guide. Since initially reaching $10,000 in 2017, the benchmark crypto corrected about 70% and remains in an extended period of consolidation around that level.”
You should also remember that in 2013, Bitcoin was trading barely at a price of about a thousand dollars. It corrected about 80% and consolidated in 20 17, after initially reaching $1,000, it added a zero.
Considering normal maturation, about double the time frame from $1,000 to $10,000 would come in around 2025, for Bitcoin to potentially add another zero.
Recall Nairametrics, about a few days ago, also highlighted some key fundamentals showing that Bitcoin looks more like a bargain to hold.
It should be noted that BTC has a circulating supply of 19 million coins and a max supply of 21 million coins, meaning there are just about 2 million left to be mined.
- Taking into account that about 4 million Bitcoins have been lost forever as a result of BTCs owners dying, and their next of kin not having access to such cryptos, it is fair to say there are only about 15 million BTC presently in circulation to cater for over 7 billion people fighting to have a stake in Bitcoins, meaning that as BTC becomes scarce and more popular, it becomes a matter of time for the crypto asset valuation to hit the roof.
- As the general economic law states, when demand is high and supply is limited prices of such products will usually go up.
- Bitcoin has established a robust support level at $10,000, defended on several occasions throughout September.