Is Bitcoin going to $1,000,000?
What to expect from the world's largest cryptocurrency in the coming months and years
Bitcoin is the largest and the most stable cryptocurrency in the world. It was invented to be like a new, digital, and modern form of gold. It is already treated as money due to its characteristics. Bitcoin is scarce, storable, divisible, portable, durable, verifiable, fungible, salable, and recognized across almost the entire globe.
It is also decentralized. Thus, its existence and value are not tied to any government, company, agency, or financial institution. Additionally, it can be broken down into smaller fractions if for someone it would be too expensive to buy the whole coin.
In the last several years, Bitcoin has sent millions of people around the world into an emotional and investing frenzy as it has seen unprecedented price growth.
In the past 7 years, it has surged by ~3,000% and the only major theme that has outperformed Bitcoin over this period was Nvidia stock.
Moreover, since January 2017, Bitcoin has risen by a whopping 6,715% even outperforming the aforementioned Nvidia.
However, do not be fooled by easy gains as in comparison to gold or stocks Bitcoin is quite a volatile asset as it has not become as mature yet. Similar to gold and stocks it is also a cyclical asset but in the past has been hit by much sharper bear markets.
Historic drawdowns have been as much as more than 80%. Imagine that you invested $10,000 and you lost $8,000 in just 3 months. Would you still hold it?
Being mindful of significant risk in regards to investing in cryptocurrencies let’s analyze what’s next for Bitcoin prices in the short-term as well as longer-term. The below piece answers the following questions:
1) Is Bitcoin ever going to $1,000,000?
2) How quickly it could get to $100,000?
3) Is a bear market coming first
4) What are the best forms of investing in this cryptocurrency?
5) How much share potentially Bitcoin could have in an investment portfolio?