The price of the cryptocurrency has been rising exponentially for three years straight, increasing 0.09%, 0.22% and 0.66% on a daily basis in 2015, 2016 and 2017, respectively. In fact, 2017 saw some of the largest surges in the value of bitcoin, with the digital currency rising from $980 to over $4,000 through the first eight months of the year. So, where will it go from here?
Now in July of 2018 the price is sitting in excess of $8,000. So you see the potential upwards volatility at play.
According to Jameson Lopp, a software engineer at BitGo, if the 7-year trend persists, the cryptocurrency could be worth $250,000 by 2020. While it might seem like a wild guess, Lopp based his calculations on the daily price change over the seven-year period, excluding 2014, when Mt. Gox declared bankruptcy, significantly hitting bitcoin’s value.
Lopp’s calculations suggest that the average rate of increase, on a daily basis, for the value of bitcoin is likely to be 0.42%.
On the other hand, Ronnie Moas, founder of Standpoint Research, told CNBC that bitcoin was likely to touch $50,000 in 2027, representing a CAGR of 28%, while analyst Kay Van-Petersen of Saxo Bank stated that the cryptocurrency could account for 10% of the average daily volume of the forex market, which stands at $5 trillion, over the next 10 years. This implies that the market capitalization of bitcoin could touch $1,75 trillion!
While analysts and experts might differ on the exact value, one thing that is common is that they all expect the price of bitcoin to continue to possibly surge over the next decade. This, then, suggests that it might be a good time now to start trading in this currency. It certainly feels like bitcoin could be the currency of the future.