It seems like a ridiculous claim. With Bitcoin crashing from a record high at the end of 2017, how could we expect a price of $1 million or above? Anti-virus software pioneer John McAfee is extremely optimistic about the future of cryptocurrency, suggesting that the bitcoin price will continue to skyrocket and hit $1 million by the end of 2020.
Bitcoin Price: An Optimistic Outlook
The Bitcoin price was all over the news at the end of 2017, with the value surging to levels that were far beyond what analysts initially expected. With all of the hype surrounding the currency’s meteoric rise, amateur investors turned to the virtual coin in droves in order to capitalize on the exponential growth of this new investment opportunity. Those same investors were no-doubt devastated after the currency dropped more than 50% in the coming weeks, but some experts are holding out hope for the Bitcoin price to bounce back and surpass anything we’ve seen before – with McAfee even suggesting we’ll see it grow to over $1 million.
To experienced investors in cryptocurrencies, this recent crash was par for the course. While many first-time crypto buyers tried to cut their losses after seeing the value continue to go down, those that held out are already starting to see the Bitcoin price rise – slowly but surely and with plenty of bumps around the rise, but it’s possible that experts may be right in their anticipation of this virtual coin continuing to show promise.
Bitcoin Price: How Does It Work?
When discussing the trajectory of Bitcoin price – and any cryptocurrency value for that matter – it’s important to keep in mind how these currencies function by default. While many traditional investments are tied to something with real-world value – such as the performance of a company – Bitcoin price is based purely off of speculation. It’s a foreign concept to many new to the investment scene, and the volatility of cryptocurrency isn’t always stressed to newcomers who are looking to buy. Government regulation and even just unsubstantiated rumors can cause the Bitcoin price to plummet, leaving new investors with a massive loss on their hands if they aren’t willing to weather the storm.
We saw this volatility in action just a couple of months ago, where we saw a Bitcoin price of over $17000 – a price that was beyond anything we could have anticipated – crash down more than 50% to below $6000. For those that are hopeful about the future such as John McAfee, this is just a bump in the road on the continued rise of virtual currency. To other experts, this may be a sign that the Bitcoin price bubble has burst and may hold no hope of regaining that high we saw near the end of December.
In truth, both parties have some evidence to back up what they’re saying. It’s impossible to predict with great accuracy where we’ll see the Bitcoin price in a few months – or even in a few weeks – but that doesn’t keep financial experts from continually revising their predictions in hope that they can keep up with the rapidly shifting value of these virtual coins.
Trouble Ahead For Bitcoin Price
While John McAfee could certainly be right when he predicts a $1 million value for Bitcoin by 2020, there are also some significant obstacles that the currency will have to surpass if it’s ever to reach that point.
As mentioned above, the volatility of cryptocurrencies is a given, and each time in the past that we’ve seen a massive crash the Bitcoin price has managed to bounce back and proceed to exceed previous predictions. The situation is a little different this time around, however, and the current political environment could spell trouble for the world of cryptocurrencies.
One reason that the Bitcoin price and the price of other cryptos have managed to thrive thus far is the fact that there has been little to no regulation on these newcomers to the investment scene. What started several years ago as a niche investment for techies has exploded to become the hottest topic in investment. With a market cap in the hundreds of billions, it’s now impossible for financial regulators to brush cryptocurrencies aside as a fad. If there’s one thing that’s certain, it’s that cryptocurrencies are here to stay, in one form or another. While we may not see that $1 million valuation that McAfee expects, the impact is undeniable and we’ll continue seeing cryptocurrency hit the news for years to come.
With how accessible cryptocurrency is to amateur investors, the volatility and lack of regulation that allowed the Bitcoin price to explode is becoming a bit of a problem. Many people have lost a money due to lack of information or the inability to assess risk, and regulators are looking to protect the average investor as well as maintain the stability of the traditional financial industry.
While some cryptocurrencies like Ripple are attempting to play nice with traditional banks by cooperating with them and marketing their currency as a service, many other virtual coins are flying in the face of traditional investors which is drawing ire from different governments.
The Mixed Potential For The Bitcoin Price
At the end of the day, it’s truly impossible to say one way or the other whether the Bitcoin price will go as high as McAfee suggests. While we continue to see steady gains when compared to the same time last year, the political environment has also changed which has caused some experts to express concerns. With as many articles there are that claim a Bitcoin boom, there are an equal amount that warn of the eventual crash.
If there’s one takeaway from the trajectory of the Bitcoin price it’s that even experts have trouble anticipating where the value will go. Those who invest in Bitcoin do so knowing the risk, with the hopes that they’ll reap the rewards – perhaps to the order of $1 million.