London, UK, 7th August 2021, ZEXPRWIRE – Bitcoin is a store of value and a payment system with much lower fees than traditional systems. As demand for bitcoins increases, so will its price. The value of bitcoin has skyrocketed in recent years. FinancialCentre broker, David Green says that It’s possible that the meteoric price rise could continue much higher over the next 10 years as well, potentially reaching $700000 per coin.
What are some of the reasons for bitcoin’s rising price?
1. Bitcoin is a Store-of-Value (SoV)
In Venezuela, many people are buying bitcoins to protect their savings against hyperinflation. This means that instead of putting their savings into Venezuelan bolivars, which have been rapidly losing value recently, they’re now instead of putting their savings into bitcoin. This trend can be attributed to Venezuela’s disastrous monetary policies that have destroyed the value of its fiat currency. On the other hand, Bitcoin is a stable store of value; in fact, over the last year or two, I have seen many people claim that it is one of the only true stores of value left in this world today.
2. Bitcoin is a Payment System with Much Lower Fees Than Traditional Systems
In addition to being used as a store-of-value, bitcoin is now also being used for payments and transfers (much more so in countries like India where the banking system is too slow). As adoption continues to grow, it’s reasonable to expect that demand for the payment system will increase and thus also demand for bitcoin.
3. “The Flippening.”
Bitcoin Cash (BCH) has been around since August of 2017, but many people don’t realize that it is now the 2 nd largest cryptocurrency in terms of market capitalization. Many people are excited about the battle between BCH, XRP, and ETH that will likely ensue in the coming months. BCH has a lot of potentials if Bitmain’s plan to merge it with Bitcoin Core is successful, because then bitcoin miners would be able to mine both BTC and BCH simultaneously (at the same time).
4. Segregated Witness (SegWit) Activation
The SegWit upgrade has been in the pipeline since 2015, and many people had hoped that it would be activated by now. This is important because transactions will take up less space on each block so that more transactions can be packed into each block. Transaction fees are based on the amount of data attached to a transaction (the larger the transaction, the higher the fees), so this means that SegWit activation will lead to lower transaction fees.
5. Lightning Network (LN) Activation
The Lightning Network (LN) will enable millions of transactions to be handled quickly and cheaply off-chain, with minimal processing on the main blockchain. The LN is expected to be rolled out in stages until early 2019, so this gives us a lot of time for speculation and a much lower entry point for new investors.
6. Big Investors and Financial Institutions
They are Investing in BTC In recent months, big financial institutions such as Fidelity and Nasdaq have started investing in bitcoin. As large institutions continue to invest more money into cryptocurrencies, this will attract mainstream investors who are still on the fence about bitcoin and other cryptocurrencies.
7. Bitcoin ETFs Approval
The SEC has rejected all applications for the past two years, since 2016. Many people have speculated that the SEC is delaying this decision until they are certain that bitcoin has become too big to fail. If this ETF gets approved, on the other hand, mainstream investors will be able to invest in bitcoin through their standard brokerage accounts.
8. Lightning Network Will Decrease Demand for New Bitcoins from Miners
The Lightning Network is expected to eliminate the need for millions of transactions to be confirmed on the blockchain. This means that there will be much less demand for new bitcoins from miners, which could lead to a downwards shift in mining difficulty (which has been increasing exponentially).
9. Mining Centralization as Massive Chinese Mining Pools Sell Off Equipment
In recent months, massive mining pools such as AntPool and BTC.com have stopped selling new mining equipment because they no longer need to grow their mining power to remain competitive. This is often perceived as a sign that the “gold rush” is over and that these companies are now cashing out with the money they made during this rally. Although the price could rise astronomically in the future, it’s reasonable to expect that the gains from mining will be linear and much smaller than what we see right now.
10. High-Frequency Trading and Automated Trading Bots
This market is still very immature, and it’s mostly made up of retail traders who are prone to making mistakes. Most automated trading bots are still in the testing phase, but some will almost certainly be rolled out on exchanges before 2019. As this technology improves and becomes widespread, it will most likely impact prices because massive amounts of buying/selling are executed automatically by computers.
Based on these reasons and a few others that I didn’t have room for, the bitcoin price might go up to $700000 by 2028.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.