One of the first questions new investors have about Bitcoin is its fluctuations in price. Bitcoin hit its all-time high back in December the 17th, 2017. This was a value of almost $20k. Since then, after many fluctuations and variations in price, Bitcoin now rests at around $8k.
The major question in the minds of the investors and users is obviously about whether Bitcoin will reach this previous high, and will it be able to surpass it. After all, they want to see the potential and how it benefits them before anything else. The opinion on this return to glory is highly varied.
The current price of Bitcoin is worth more than 150% of its price in January this year. This makes it one of the best-performing assets of 2019. At this rate, it’s easy to say that Bitcoin is on a highway set for success, with some people predicting it to rise to a price of $1 million in around 5 years, with more ambitious analysts putting it by the end of 2020.
Bitcoin goes through a routine halving every four years. This works to decrease inflation but also increases the price of a Bitcoin. Basically, every four years, the price in Bitcoin for solving a Blockchain password by a miner gets halved. For example, if the reward of solving a password was 8 Bitcoin 4 years ago, it would be 4 Bitcoin per password when the halving happens this year.
Another reason to believe in the return of Bitcoin is the greater interest companies are showing in the crypto. Besides just companies keenly eyeing investments in the crypto, there are many individuals also looking to get into the cryptocurrency.
One of the companies that recently announced its interest in Bitcoin is China’s, Ali Baba. Bakkt, a Bitcoin venture, is being backed by Starbucks as well as software giant Microsoft and the Boston Counseling Group.
Users of this app will be able to spend Bitcoin for Starbucks coffee, though currently transferring Bitcoin to the company is too slow of a process.
There are many skeptics who claim that Facebook’s upcoming Libra cryptocurrency will go on to surpass Bitcoin before Bitcoin can surpass its previous cap, and thus, Libra will prevent Bitcoin from reaching its high. However, many sources claim this to not be true and looking at the rate of Bitcoin’s current growth, it does not seem as though Bitcoin will fall much further. If anything, surpassing its old high may not seem such a pipe dream anymore.