Once a scarce asset available to a tiny community of miners and enthusiasts now has become one of the most favourite subjects at the dinner table and social media. Bitcoin and other cryptocurrencies are 21st-century investment representing the accessibility of information ensured by the digital age and technologies. While it is still a controversial question whether Bitcoin is an investment or speculation such as forex terms
, it is clear that the price of this asset is extremely volatile. Certain factors clearly have an impact on the price of Bitcoin, such as regulations and hacker attacks; other factors are there to be discovered.
The Bitcoin price is a practical indicator of Bitcoin’s real-world value, relative to other assets and currencies. While many factors affect the Bitcoin price in varying periods, user base, developer activity, and global adoption have been the three key factors behind the long-term increase in the price of Bitcoin for the past eight years.
As an increasing number of users start to use Bitcoin, the demand for the cryptocurrency and speculation around the cryptocurrency market will further rise at a rapid rate. It is reported that 26 years from now if the user base of Bitcoin continues to grow at this pace, nearly everyone in the world will use Bitcoin. Analyst forecasts
Not only cryptocurrency enthusiasts have boosted the popularity of Bitcoin. There are numerous analysts forecasting mind-blowing value for Bitcoin and extreme profits for those holding them:
- Bitcoin will hit USD100,000 in 10 years with 10% of USD5 trillion average daily volume in the foreign exchange and USD1.75 trillion market capitalization. /Key Van-Petersen from Saxo Bank;
- Bitcoin will hit USD100,000 in 2021 according to Moore’s Law (golden rule of digital technology);
- Bitcoin will reach USD5 trillion market cap in next 10 years /Aaron Lasher, Breadwallet.