There are quite many solid reasons still indicate that this coin will hit $50,000 or even higher in 2019. Most of these reasons are hinged on the concept of supply and demand which affects asset values while some are based on expert opinions and psychology.
Supply is Limited
Bitcoin is designed with a supply limit of 21 million, and currently, there are about 16.8 million coins in circulation having been already mined. This supply cap has a direct effect on the prices of the coins in circulation because when the supply eventually reaches its limit, the coins will be unable to meet the demands thus causing an increase in the price of bitcoins. In addition, the way the mining process (the method used for the creation of coins) is set up is such that as more gets created, the production of the next becomes harder.
The bitcoins are decentralized, which means that governments and central banks across the world cannot shut down the network or use monetary policies to amend the flow. You can evade the system if you are a Mark Zuckerberg or an Edward Snowden.
Considering that mining is majorly done by computers, the computer power needed to create them is also on the rise. This causes an increase in energy costs which will also affect the price of the bitcoins in circulation shooting it higher since an increase in mining cost slows down the creation of new bitcoins thereby changing the value and prices of the ones being circulated.
Bitcoin was first
Bitcoin is the first digital currency ever created and its presence over the years even through surges in prices at different periods has given it some sort of edge and credibility over other coins. As a matter of fact, people tend to refer to all cryptocurrencies as “bitcoin colloquially”. This has made bitcoin the most preferred coin by so many new investors, and this preference has a direct effect on its demand, supply, and value.
In addition to the effect of its position as the first coin, it has also gotten the acceptance of several investors and has received the fairest share of attention from media outlets. Different companies sprung up just for the sole purpose of trading this coin, and several supportive efforts have been directed towards its current and future value. Some recognized bodies and even nations such as Switzerland have started accepting bitcoin as means of making transactions, and this keeps giving more credibility to the coin as it makes prospective investors more assured since they are putting their money into an investment considered viable by governments and financial institutions. All these make bitcoin a highly demanded digital currency and keep increasing its value. Bitcoins are interchangeable. Want that Lamborghini, that yacht or the villa across Jumeirah beach? Bitcoins will serve you well. If you are a fan of decentralization and complete liberation, bitcoins are for you. They are also for you if you have a phobia of germs, and get all panicky while touching germ-laden fiat currency. If you don’t like the FED, they are for you. If you are Al Pacino and don’t want to pop-up on any radar – they’re definitely for you.
Bitcoin’s Adapts Well To Changes
Another vital reason why bitcoin will hit as high as $50,000 or even more in 2019 is its adaptability nature. It is trite that Bitcoin is first a software before anything else and just as expected of any software, it can incorporate added features and increase functionality when the situation so demands. As the cryptocurrency ecosystem keeps growing, any currency that wants to survive has to possess the ability to adapt to changes easily and swiftly. Luckily, bitcoin has a support team made up of knowledgeable and experienced development experts.
Thus, features like the Lightning Network which Bitcoin’s open source developers are currently working on will affect the value of this digital currency. The Lightning Network aims to increase the network’s usability by offering free and instant payment medium to trusted parties. According to the advocates of this network, it will reduce network congestion and may even render several alt-coins useless. Although Lightning developers have mentioned that it is not ready for a mainstream adoption on the network, the speed with which it has developed has however occasioned an increase in the value attached to Bitcoin. .
The etymology of the word bitcoin has no traces. It’s an inside job well handled and maneuvered. BTC and XBT symbols represent the bitcoin. A wallet stores all the nitty gritty which is indispensable to transact bitcoins. While wallets are thought of as holders, the bitcoins are inseparable from the blockchain – darn it! Hence, good riddance for the consumerist society – anti-fascist slogan go hoo hoo hoo!
Privacy is not a concern with bitcoins. The identity of the holder or owner is not revealed. However, if you are exchanging your bitcoins for traditional currency, the local law enforcement may demand your true identity and personal detail. Yet as far as the ownership is concealed and the addresses are the only reveal, you are safe.
History of Bitcoin’s Price
Since its invention to date, bitcoin has experienced several price crashes and value depreciation. However, it has always found a way to stage significant price comebacks after each drastic fall. For instance in September 2017 after the ban on Bitcoin in China, there was a 40% fall in value from $5000 to $2972, but got as high as $19,000 before January 2018. BTC price history is here.
This implies that even with the current price fall, the historical trend suggests that there will be a major price comeback. Reports indicate that a fall in price has never made bitcoin holders sell their bitcoins because they are well aware of the trend and the value of bitcoin.
Different investment and cryptocurrency experts have given a different prediction based on well-conducted research and experience in their respective fields. For instance, Sam Doctor, head of data science research at Fundstrat has stated that he believes bitcoin price will be about $36,000 by the end of 2019 and with its range being between $20,000- $64,000. He also added that the primary net sellers would be the bitcoin miners and investors.
Also, a professional analyst who works at Saxo bank, Kay Van-Petersen, predicts that Bitcoin would reach $100,000 at the end of the year, meaning that it will possibly be higher by 2019. It will be noted that Van-Petersen predicted in December 2016 that Bitcoin would hit the $2,000 mark in 2017 and at that time, Bitcoin was still trading below $900. The price went past $2,000 in May just as the analyst predicted.
Even though the price of bitcoin keeps fluctuating, experts have stated that this is as a result of volatility which is a common feature of new markets. Thus, the price of bitcoin based on the aforementioned reasons still has the full tendency of hitting as high as $50,000 in 2019.
If you listen to too much news and analysis, bitcoin may seem to you to be a mere speculative economic bubble which will burst soon. On the contrary, the bubble has not burst as yet. Bitcoins though being up and down have gone up as in aggregate. It is predicted that in 2019 bitcoins will be worth 50K USD a piece when octopuses from mars fall out from UFOs to execute the perfect Martian job for the cryptocurrency. Sorry Matt Damon!
In addition to those reasons, there are also technological innovations and recent regulations that support bitcoin thus making it easy to draw a conclusion that the digital currency is here to stay and its value will keep increasing. Now is the right time to invest in bitcoin!