Since I wrote my first post about the Bitcoin price dropped on November 28th, 2020, the Bitcoin price has increased from $18,199.23 to $22,952.56 which is 26% gain. If you invest $100 at the time, you will gain $26 as return.
The price continue climbing steadily but there are some correction (overbought indicate in red dot that similar to 2017) in the future. In 2017 near end of year, the Bitcoin hits $19,891 before the price collapses into around $6,000 due to technical difficulty of using Bitcoin as currency for daily transactions.
The idea then was to replace currency transaction from dollar to bitcoin. However, it never had completed such tasks due to high transaction fees from almost $50 per transaction to $12 recently. But thanks to SegWit (Segregated Witness) had reduced transaction fees and more innovated solutions.
SegWit doesn’t reduce the number of transactions, it makes each one cheaper.
Challenge of replacing currency may not as Bitcoin intended to achieve but it starts another journey to become digital gold.
People now stored Bitcoin the similar way to store gold and start of believing that digital gold may achieve or better than gold.
So where is Bitcoin is heading toward?
I believe that we need to know how to evaluate the intrinsic value of Bitcoin. Also, there are more and more companies may hedge their assets using Bitcoin to continue inflate the price of the digital gold.
We will learn how to estimate the value of Bitcoin in my next article. However, I wish the best of you and your family in holiday seasons and to believe that Bitcoin is a viable solution of digital payment method in the future!
Disclosure: I/we have no positions in any cryptocurrencies mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies is mentioned in this article.