Do you want to know how Bitcoin Will Reach $100,000 dollars in a Few Years. Have you ever wondered why Bitcoin is so big, and why it’s the world’s most popular cryptocurrency? Have you thought about possible price moves in the future, but never quite understood what makes the Bitcoin market move? We’ve all done that before. In this article, you’ll learn how Bitcoin will reach 100,000 dollars in a few years. Also, we will describe the principles that make Bitcoin a strong market participant, external factors that cause Bitcoin price rises, and why the next few years are critical.
The first key thing to consider about Bitcoin is its mathematical scarcity. The number of bitcoins that can ever be created is capped at 21 million via the block generation algorithm. No matter what, more bitcoins can never be created beyond that cap. We all know that fiat currency can be inflated and hyperinflated - look at what happened in Weimar Germany, and more recently, Venezuela. People lost their savings overnight due to government’s mistakes with money. Funnily enough, people began plastering their house walls with money because it became cheaper than using actual wallpaper. You might think that gold is safe, but there are tons and tons of gold reserves waiting to be mined. Atom transmutation will soon allow scientists to add electrons to existing elements, effectively turning something else into gold. The only truly scarce quantity in the world is something that can mathematically be verified to be so - and Bitcoin is cryptographically scarce.
This scarcity is exacerbated as time goes by. People lose their wallets. Bitcoin holders pass away. Coins get sent to the wrong address by accident. Over time, the supply of accessible bitcoins decreases at a faster and faster rate. It’s simple economics - if supply decreases, price increases. Assuming that the demand for bitcoins remains constant, we’re looking at massive continued price jumps due to bitcoin’s naturally scarce nature.
This is becoming increasingly relevant due to the upcoming Bitcoin block halving in about 100 days. Every four years, Bitcoin’s inflation gets cut in half, further reducing the quantity supplied. Each halving in the past has led to a massive jump in Bitcoin’s price. With worldwide awareness and adoption levels for Bitcoin at record highs, who knows what the next halving will result in? It’s possible that we may witness an unprecedented boom in Bitcoin’s price after this halving, mirroring the halvings that came before it.
These are merely the intrinsic values that Bitcoin manifests, allowing it to obtain a constricted supply nature. However, when performing price analysis, we can’t simply look at the scarcity - we have to look at worldwide factors as well. There is a myriad of different things that will come into play this decade, and all of these new factors will have a profound overall effect on the price of Bitcoin.
Let’s start off with the changing demographics. The boomer generation is aging, and millennials are coming into the forefront. Millennials are tech savvy and suspicious of authority - they’ve seen too much government incompetence, and have studied a lot of history. They know how hard inflation can hit, and how financial institutions can’t always be trusted. Since they have pre-existing technical knowledge, Bitcoin isn’t a new and scary concept for them (like it is for some of the older folk). This makes young people naturally much more inclined to park their money in Bitcoin. This effect will continue to roll over the cryptocurrency market even harder as the younger generation starts getting gainfully employed. Changing demographics are by far one of the biggest factors that will affect the crypto market in the next few years, especially considering the fact that young people like to keep everything online. It’s all about security and speed - no millennial is going to go out to a pawn shop and purchase physical gold when they can buy bitcoins with a click of a button.
Another key factor is global tension and macroeconomic stability. We know that when the economy is good, stocks and housing prices are strong. However, we also know that the economy goes through boom and bust cycles. When the bust comes - and it will - stock prices will be decimated, the housing market will crash, and people will lose jobs. In such situations, it’s not unheard of for the government to shut down, for fiat money to lose purchasing power, for banks to go bankrupt, and more. People are thus craving a safe haven to park their wealth - a haven that not only keeps their money safe during a recession, but one that actually appreciates in value. Gold is one of these things, but due to accessibility and storage issues, it’s becoming less popular amongst young people. Bitcoin has proven to be a beautiful hedge against global instability. When some bad economic news is announced, it’s usually coupled with a jump in Bitcoin’s price. This is due to the fact that the market views Bitcoin to be a safe haven, and not tethered to the moves that the traditional financial market makes.
Global tensions are rising - sentiments between powers such as US and Iraq or India and Pakistan are not looking great. There is a non-zero chance that a war could break out within this decade, and if that happens, people will flock to Bitcoin, and make it their asset preservation mechanism.
All of these factors - Bitcoin’s intrinsic principles, changing demographics, and global tensions - they all come together and ultimately move the two market forces - demand, and supply. With supply continually falling and with demand being pushed up thanks to all of these factors, there is a great chance that Bitcoin will hit unprecedented heights in the coming years. $20k? $50k? $100k? Who knows? The sky's the limit.