How high can bitcoin go?

By CryptoEnthusiast | Bitcoin blogs | 7 Feb 2021

How high can Bitcoin go?
We’ve seen all the predictions, ranging from $100,000 to $600,000 for this bull run but realistically how high can bitcoin go?

What gives bitcoin its value?
Bitcoins value is derived from its scarcity, reputation and utility. These factors all contribute to bitcoins growing value, more so as confidence in governments falls.

Bitcoin is a capped crypto, only 21,000,000 can ever exist and its estimated 5,000,000 have been burned/lost. At present around 19,000,000 have been mined meaning theres only 2,000,000 left to be distributed via mining over the next 100 years or so. This scarcity makes bitcoin desirable. As it does indeed work as a currency, it being deflationary creates demand similar to that of gold.

Bitcoin is the first cryptocurrency and has built a strong enough reputation to remain dominant even when faced with fierce competition from rivalling currencies and legislations. Bitcoin being semi anonymous, impossible to forcibly confiscate and holding its value makes it an attractive currency for people who want anonymous purchases and people who want to hold wealth that the government cannot take. Confidence in government spending has fallen as the government attempts to speed up the recovery of economies so financial control is more important now than ever. We’ve all seen headlines of police failing to retrieve seed words therefore being unable to confiscate peoples cryptocurrencies. This wealth security makes bitcoin appealing and therefore gives it value and it probably Bitcoins biggest advantage over competition.

I know, bitcoin is a bit slow and fees aren’t exactly the best, but with no intervention from centralised third parties you can move $1000 of wealth for less than $5. Thats a small price to pay for the freedom to transfer wealth without government control. Bitcoin is the most trusted transfer of wealth in cryptocurrency due to the lack of centralised control therefore it can safely be assumed miners wont collaborate to cause a 51% attack. This is a potential threat to any crypto but the decentralised nature of bitcoin is one of its biggest securities.

So how high can it go?
Well all factors considered; we don’t know. It depends on fiat inflation, social situations (for example how BTC fell last march due to covid) and on confidence in cryptocurrency in general. One thing is for sure, should Bitcoin hit zero, it will bring the whole crypto industry down with it.

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New to crypto but loving the scene! Planning on reviewing altcoins, faucets and current economic crypto climate

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