Bitcoin Is Approaching 10,000, But How High Can It Go?
Despite increased competition from Bitcoin Cash and other cryptocurrencies, Bitcoin remains the undisputed king of the cryptocurrency world. The leading cryptocurrency recently reached a new milestone as it hit an all-time high of $9,942.
Bitcoin has been nearing the $10,000 mark for several days now and as of this morning, the coin’s value rose by 2.14%
One of the more interesting things about Bitcoin’s sudden rise is that it was preceded by a dip in value. A surge in the value of Bitcoin Cash saw Bitcoin decrease in value. As of last Friday, it was worth $7,958. A few experts and analysts even discussed the possibility that Bitcoin would continue to fall in value though they stressed it was merely a possibility.
Well, it turns out those theories have been proven wrong as the cryptocurrency has risen by nearly $2,000 since last Friday. Traditionally, major rallies in value such as this are followed by declines, but, so far, Bitcoin has continued to rise so it is unclear when it will stop or how much it will be worth when the currency stabilizes.
While speaking with Business Insider, billionaire Mark Cuban said that he believes the coin will continue to rise in value as more investors enter the market. He also said that he believes the coin’s value is driven, in part, by the fact that early investors view the coin as more of a collectible than a true currency.
“The number of people opening up new accounts and buying bitcoin, even fractionally, is skyrocketing,” Cuban said. “Yet the people who have it as a true store of value have no reason to sell it as long as demand continues.”
Another reason many hoarders hold onto Bitcoin is simply because they don’t have much to spend it on. Only a relatively low number of merchants accept the currency so even if they want to spend it, their options are limited.
“They can’t spend it, so they keep it,” Cuban said. “If big holders don’t sell and the number of Coinbase users keeps going up, the sky is the limit.”
In terms of the coin’s upper limit, he said he believes it could reach as high as $40,000 by the end of next year.
That being said, the coin does have a few issues. One of the largest is the lack of major institutional support. This is slowly changing as large investors begin looking at the currency. However, a number of major Wall Street firms have spoken out against Bitcoin.
Once Wall Street is on board, we’ll know the coin has truly entered the mainstream.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.