There are at present a little more than 16.5 million Bitcoins available for use, representing about $71 billion. That may appear like a great deal, however, compared to cash available for circulation– about $5 trillion worth – and Bitcoin is only a tip of an iceberg.
Bitcoin is seeming unstoppable, rising over 54% in value the first two weeks of August alone. As of late August, its value was at $4,625 per coin. In one year Bitcoin has shown a rise more than other assets, that is rising over 520%.
But is this rise sustainable or this will crash? Well, there are various reasons that suggest Bitcoin may reach $10,000.
It’s essential to note exactly how rare Bitcoin is. There are at present a little more than 16.5 million Bitcoins available for use, representing about $71 billion. That may appear like a great deal, however, compared to cash available for circulation– about $5 trillion worth – and Bitcoin is only a tip of an iceberg.
Over this, it is evaluated that somewhere in the range of 25% of all Bitcoins mined are lost forever, either as a result of improperly created wallets, lost keys, disposed of hard drives or carelessness.
There is a limit to total number of Bitcoins that can be owned. If demand increases, the prices will definitely go up.
Why will demand increase?
This is a debatable question that whether the demand of Bitcoin will increase or not. Bitcoin’s total market value is higher than the likes of Netflix, General Motors, and American Express,
We may think of following reasons which can bring in about huge demand of this cryptocurrency
- It’s potential: Maybe the biggest utilize case for Bitcoin is a fungible instrument: It can be utilized like fiat cash, to purchase and sell products of significant worth as a form of money exchange. It is likewise quick and cheap to move in comparison with conventional banking.
- Easy to Trade: Bitcoin is gradually becoming easily accessible. There are exchanges to trade Bitcoin. New ATMs are also opening up. CoinMarketCap has listed over 75 exchanges that actively traded at least $1 million in Bitcoin within the last 24 hours, and according to Coin ATM Radar, there are over 1,400 Bitcoin ATMs currently operating which a huge number since last year.
- Liquidity: Because of high day to day exchange volumes and a solid open request book, Bitcoin can be purchased and sold quickly in larger amounts. It can be changed over to different currency or to a local currency almost immediately.
- Asset: Bitcoin can be kept as an asset, just like gold. Just $1,000 invested in 2010 would be worth of $70 million today. Its value is estimated to increase over its lifetime.
- Decentralized: Like the fiat currency, which is controlled by the bank Bitcoin is not owned by any organization. So bitcoin can survive in the market where a currency is under some political influence or developing countries where banks are still not operational. For trading Bitcoin or for payments to be made we just need an internet connected smartphone.
More money is going in Bitcoin, which means more people are buying it. Its future prospects are looking good. It’s just a matter of time when bitcoin will touch $10,000 mark.
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