On November 29th, 2017 bitcoin breached US$11,000 at some platforms for the first time reaching its historical maximum. The value of bitcoin rose almost 1000% for the past year, from less than US$1,000 to US$11,000.
Opinions regarding the future differ greatly. Some analysts are still assuming that it is a bubble, yet they were saying it is a bubble when bitcoin was worth less than US$1,000, then when it was at US$5,000 and now when bitcoin is more than US$10,000 some are still assuming it is a bubble.
The rise of bitcoin this year was triggered by a number of events, starting from global hackers demanding ransom paid in bitcoin (ransomware), bitcoin splitting in 2 variations, political situation in China and Russia that also influenced cryptocurrency market, CME group announcement that it is planning to introduce bitcoin futures by the end of this year, bitcoin’s technical upgrade cancellation, as well as increased demand for bitcoin due to the fear of investor of missing out.
Despite a huge increase in price, it is never too late to buy bitcoin. The number of investors increased dramatically for the past week, despite the price jump and uncertainty about the legal standing of cryptocurrency. New coming investors keep opening accounts at different trading platforms. As an example, total number of accounts of Coinbase platform has already reached 13.5 million with a huge increase of opening new accounts from November 22nd till today. And the number of Coinbase accounts tripled since November 2016.
Not everyone is positive regarding bitcoin’s future. Some analysts call bitcoin a “scam”.
George Soros systematically predicts that bitcoin bubble will burst soon, probably he will be the last one to ever buy bitcoin, if ever.
Another pessimist is a Jack Bogle (Vanguard founder, who started the first index fund in 1976). He suggested to “avoid Bitcoin like a plaque”, explaining that “bitcoin has no underlying rate of return” adding that “there is nothing to support bitcoin except the hope”, yet he admitted that “bitcoin may well go to US$20,000”, at the same time assuming that it will get back to US$100.
J.P.Morgan CEO Jamie Dimon, joined the company of Soros calling bitcoin a “fraud”, and he got even further by saying in September 2017 that he would fire any employee in a second for trading bitcoin for being “stupid”. Hopefully many employees got fired for being “stupid” considering a huge raise of bitcoin.
Those “predictions” appear in media from time to time without proving the speakers right so far.
Yet there are other analysts who managed to foresee the raise to certain numbers way before it happened.
At the end of October Max Keiser, financial analyst predicted that bitcoin is nearing US$10,000 in the near future (while bitcoin was US$6,300 at the date of an interview) and suggested that long-term prognosis for bitcoin is US$100,000.
Same long-term prognosis of US$100,000 per 1 bitcoin is given by Kay Van-Peterson who predicted that bitcoin will reach US$2,000 easily in 2017.
As bitcoin reached US$10,000 bubble warning multiply yet Keiser who gave US$10,000 prognosis reaffirmed long-term US$100,000 target. He also said that once the cryptocurrency reaches US$1 trillion in market capitalization, that would bring bitcoin to a price of up to US$45,600.
According to Cryptocurrency Market Capitalizations, the market capitalization of 1,324 cryptocurrencies already grew from US$17.5 billion to US$317 billion.
Michael Novogratz, a hedge fund billionaire who predicted the currency reaching US$10,000 milestone at the end of 2017, predicted that bitcoin can hit US$40,000 by the end of 2018. As well as he predicted triple price for Ethereum, which currently breached US$500. Yesterday on November 28th 2017 Michael Novograt also assumed that cryptocurrency market capitalization will reach 2 trillion by the end of 2018.
Basically Kaiser with his US$100,000 price target also means bitcoin market capitalization will be reaching US$2 trillion.
Once bitcoin hits US$100,000 mark, we can make May 22nd an official US$1 billion pizza day. A well-known story of Laszlo Hanyecz who bought 2 pizzas in May 2010 for 10,000 BTC and if bitcoin ever reaches US$100,000 then it will make those 2 pizzas bought in 2010 worth US$1 billion.
As more major retailers (like expedia.com already or overstock.com that declared it will start accepting bitcoins for payment next year, or Amazon buying multiple cryptocurrency domains is rumored to start accepting bitcoins), as well as auction houses starting to accept bitcoin for bidding, with more and more investors engaging in trading, combined with other positive indicators like expanding user base, increasing trading volume, makes a US$100,000 target appear more and more realistic, putting an end to banking system. So it is a right time for bankers to start trading bitcoin.