Article written on November 7, 2017. Updated on March 20, 2023
Bitcoin too expensive? Or dirt cheap?
The experts are diametrically opposed. One says that bitcoin is in a bubble and you should absolutely NOT get in. The other says that the price could go to the $100,000 mark. Well, NOBODY can see into the future, so I can’t predict what the price will do either. Of course it can collapse completely, however the digital currency has been around for several years and has proven to be a strong currency. Although I am normally a very cautious investor, I also expect the price of bitcoin to rise a bit.
Supply and demand
Everything in our modern economy revolves around supply and demand. If there is a lot of demand and a lot of supply, prices will remain the same or perhaps fall. If there is little demand and much supply, prices will fall. If there is little supply and a lot of demand… the price will go up.
Up to 21 million bitcoins are being spent, and that is currently happening at an increase of just 12.5 btc per (approximately) 10 minutes. There are currently about 16.6 million in circulation (update January 2021: 18.5 million). The increase is halved every 4 years, making it even more difficult and scarcer. Bitcoins can therefore not just be printed or added, such as euros or dollars. So the supply is relatively low. However, the demand has been increasing for a long time and more and more investors see bitcoin as a long-term investment. Result: in the (short term) the price will certainly rise somewhat, in the long term it is and will of course remain speculation.
However, Bitcoin is still in its infancy and can go either way. However, the currency is widely used in China and Chinese transactions and that is very beneficial for the exchange rate. More and more users (demand) will and want to start using bitcoins, while the number of available coins is increasing very steadily and at some point they are all forgiven. The general expectation is that the price will have risen sharply.
Investment larger companies
Now that larger companies are also investing in Bitcoin, for example Tesla, who bought a total of 1.5 billion dollars worth of bitcoin in January 2021, it seems that we can expect that bitcoin can go to extremely high prices.
The only real danger that can cause the price of a bitcoin to stagnate or fall, of course, is competition. It may be that another crypto currency becomes more and more popular, so that the bitcoin receives less demand and therefore will fall in value.
No one can predict it, not even me. But as long as I can earn FREE bitcoins and the price continues to rise, I’m in!
Is this perhaps feasible?
Wheel of Fortune - Claim your free spins today
To become a member of freebitco.in, sign up for “Wheel of Fortune – Claim your free spins today”. You will then receive an email from freebitco.in every day, giving you one free spin per day. While you always win something, there is always a chance that you may hit the jackpot.