Another Broken Record on the List of Bitcoin
The price of bitcoin topped $3,000 for the first time in history on June, the 11th.
August 1 approaching
This is particularly interesting, given the fact that its transaction fees are on the rise, its settlement periods increasing, and its community divided over what next actions to take.
Indeed, in order to make Bitcoin more scalable, the community needs to reach a consensus but recent developments have been far from harmonious lately.
The situation is particularly stressing because the deadline of August, the 1st set by the New York Agreement is approaching.
Despite this hectic situation, Bitcoin’s price is still bullish and breaking records. One explanation of this trend is the strong speculation over Bitcoin. The currency has been making the headlines recently, and hungry speculators have been getting on board for short-term profits.
The other reason is that some investors are simply confident in the community, and believe the New York Agreement will have a positive impact on Bitcoin. Such is the case of Saxo Bank’s analyst Kay Van-Petersen.
More Rallies to Come
When Bitcoin was trading at around $750, Kay Van-Petersen accurately predicted that its price would hit $2,000 in 2017. His forecast was soon realized at mid-May 2017.
The same analyst now thinks a market price of $100,000 by 2027 is a conservative prediction. He estimates the future market capitalization of Bitcoin to reach $1.75 tln by that year, and its daily traded of volume to reach $500 bln out of the total $5 trl traded in foreign exchanges.
“There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering”, bets Kay Van-Petersen.
That being said, I must warn readers that his words must be taken with a grain of salt. Indeed, the first-mover advantage offered dominance to many players in the past, but history shows that it is not always how things turn out.
Internet Explorer and Nokia were the first in their field, and have now lost their number one position. Everything is possible in the cryptocurrency market, and August, the 1st would give us more clarity into how Bitcoin may evolve in the upcoming months and years.