So we're all very excited to see Bitcoin continue to climb to incredible highs! Breaking records nearly every day! Currently as I write this, Bitcoin is at $4303 USD! But is it becoming overvalued? Or is there just an incredible influx of demand like we've never seen before?
We all know that no market continues to climb without correcting from time to time. We know it all too well in the crypto world, especially considering what we saw in 2014 and again of course in June to August.
These healthy corrections are necessary to lead in to the incredible rallies we've seen. The fact that in about a month, Bitcoin went from $1800 USD to $4300 tells us that it might be getting overheated.
There's no reason to panic of course! It's just worth considering. We've had some fun and I think it's clear that we're coming up on another breather in the coming weeks. Some disagree and say this is just a transition period:
I respect these opinions and there's a good chance they are right. I just feel this climb might be a bit over the top. My personal prediction is that Bitcoin will correct around $5000 USD and following the correction we'll probably see a rally to more than $10,000 USD.
People will eventually want to take profits and it'll result in a lot of newbies selling off out of fear as per usual and the contagion will cause a drop to a floor most likely between $2800 and $3400. My predictions can very well be wrong. I've been right and I've been wrong many times with my predictions. I'm just analyzing past corrections and the fundamentals we've seen in those corrections.
Long term however, we are definitely going to see a MASSIVE Bitcoin value! Most of us predicted that Bitcoin would hit $5000 USD by the end of the year and it's starting to look like we undervalued our predictions!
This brings me to question the point I always make that at the 7 year average daily rate of growth, Bitcoin will hit 250k by 2020. Maybe John McAfee knows something I don't and it WILL hit 500k in 3 years. It's hard to say, but Bitcoin is definitely going far and beyond anything I could have predicted in such a short time period.
Let's hope for the best! But no matter what, Bitcoin isn't going anywhere! In the end, none of us truly know what's going to happen next, but I know personally that I'm incredibly excited!
Yes for sure it is getting overheated but remember markets can remain overbought for an extended period of time.
Interesting how BitCoin is racing away from the other coins. I think there is a huge potential for the other coins because people will eventually start play with their BitCoins and invest them into other coins as well. Particularly Steem could need that. Right now the Steem to BitCoin price is falling into the bottomless pit.
I think Bitcoin IS making a transition from just a payment system to the internet of money trough Segwit. Furthermore it looks like the adoption rate is huge so I think the future is very bright. I think the price will rise much further, but of course as in every asset that is traded, traders will take profits and there will be corrections on the way to the moon.
Cool post! You could be right, but we've seen profit taking all the way up. Just yesterday it fell almost 300$ and then gained again within a 5 hour candlestick. It corrected from $3000 to $2500 between july 20th and july 26th.
In my opinion these are real correction, they are just happening really fast because people take profit and at the same time people are eager to get in for another 100+% ride (and of course new longs entering)
I agree that we must and should see a bigger correction at some point. It can't go to 50k without anything but daily corrections. True. And who want's that. That's what bubbles are made of. Corrections are healthy.
I agree that a larger correction will come soon. I personally think there is a pretty big chance that it will happen at 5000$ , like you predict. But I believe there is a bigger chance we'll see 10k before the "big correction". If BTC then corrects down to 7-8000$ and continues to climb again, you should really strap in, for that thing is going to skyrocket right to 30k.
I believe Bitcoin is something of a hyperreality thing. It's something brand new, something never seen before, and it's a currency and a store of value. It could be worth incredible figures.
If it captures 10% of the gold markets value we have 30k bitcoin. If it grows as large as the gold market, which it most definitely can, we see 300k. And even the gold market is small.
So 30k is absolutely realistic in a shorter perspective (like 1 or 2 years)
300k is absolutely a possibility
And beyond that point is even possible if large masses of people adapt.
Not to mention other cryptos and the entire market combined.
One should sell and buy back at the next fall but I do not dare ..
Bitcoin needs to fix its processing ability in order to make itself a more viable currency. It can't compete with fiat right now considering Visa can handle some 10,000 TPS. BTC is at some 7 TPS. As for its price, it will keep going up as long as people are willing to buy at these prices and others are willing to hold on. This is the beginning of the BTC mania so there is no telling where it will go. BUT, Bitcoin needs to be more scalable for it to make it to the big, big time.
Bitcoin will scale and the more the price is rising the faster this will happen. Adoption will be followed by full blocks and full blocks cause incentive to find scaling solutions. In a free market a solution for a bigger problem will give a bigger reward so solutions will be found. The drama about the scaling issue retarded the rise of Bitcoin more than the issue itself
We all must not forget that at the end of the day we're looking at something priced in USD. With people trading, and taking profits, what is the actual end goal? For a couple million people to make off with a couple million USD or an adoption so large that it doesn't even need a USD price and that in the end most people are buying and selling items in real life with very small micro fractions of bitcoins? I don't have skin in the game so maybe it makes me see things differently than someone who sees their digits getting larger against another digit. If the USD value graph is to go down at a parabolic rate, bitcoin would go up on that same growth curve, wouldn't necessarily meant it's going up.
Adoption is huge but let's just make sure we're looking at all sides and not just the money
Bitcoin does not need to be assessed by the USD value. For example, if you look at the hyperinflation in Venezuela compared to the free market Bitcoin value, the hyperinflation is technically more that 17000%.
Once the USD falls, which it will, you will judge prices in Bitcoin based on the denominations of Bitcoin. People once bought products in half cents, cents and nickels. A dollar was a lot to most before inflation truly hit. One can do the same thing with either Bitcoin as a dollar and the smaller denominations which many of us see in our wallets when we buy products or services.
As for whether Bitcoin itself or USD designates the value change, the USD may be devaluing but not enough for Bitcoin to go from $1800 to $4400 in less than a month. In comparison it's minimal. If it devalued that fast it would be one of the most dramatic hyperinflationary events in history. lol
nice post, love the rollercoaster gif hehe.
I think unless Bitcoin encounters issues that it can't overcome and I believe there are still some major issues on the road ahead.
It will grow astronomicaly, for as long as my immediate surroundings still don't understand what Bitcoin means and how it works we are very much at the start.
Well written! I also believe that a correction to around $3000 is coming in the near future. On a separate note I find it very interesting that LTC for the most part held steady through all this money moving into BTC. Makes me even more bullish about LTC!! Upvoted and followed
The main reason why John McAffee said his statement with such confidence is because he believe that the US economy is on the fringe of breaking down. We are facing such economic uncertainty that Bitcoin is actually looking like a good alternative to people! The geo-political instability caused by N.Korea has also put a huge upward pressure on BTC prices as stock investors are trying to dodge losses in traditional markets.
Good article. The political instability and the issues with fiat, like inflation and the US Bond bubble, will hopefully lead to a lot more adoption of btc.
I already understood that it is impossible to predict the growth or fall of the bitcoin prices :)
We'll probably see McAfee eat pu$*y on his own television network, not his own dick on FOX ;)
Those who keep their bitcoins will have money in the near future and long future. I don't dare to trade or exchange my bitcoins! Nevertheless I did trade other coins because I see they are at the same rate or lower rate, like ETC. The other day a famous antivirus company said they expect to see 1 BTC = 1 million dollars. Wow!!! That will be terrific! To be millionaires with just one coin that no one dare to spend. Ja, ja, ja!! Upvoted. Good ride!
I think someone is manipulating the price again, buy buying a lot of bitcoin with invalid money.