Will Bitcoin hit $5000? That is the big question. And what should you do? Should you invest in the hope that Bitcoin will hit the new $5k benchmark or should you stay away from Bitcoin? If you have invested $900 in Bitcoin as late as January this year, your capital has more than quadrupled.
If you were an early bird and invested in Bitcoin in 2010 – a mere seven years ago when the price was at $0.08 – your $900 then would be worth $48 million today.
The problem is that in 2010 very few people other than the tech gurus knew much about Bitcoin. Your possibility of exposure to Bitcoin if you are a regular man in the street was probably extremely limited. Even today, you may still need to know How To Buy Bitcoin.
You may well think that they have missed the boat. However, the point is, what will you think when the price hits $5k or even $10k – will you still think that you have missed your chance?
The rise from $0.08 to $4300 is a steep one. It is a 14,000 vertical rise. What if the vertical rise is projected to the future? What would we be looking at?
If the predictions on the above chart are correct, investing $1000 now will turn to$140,000 in the next five years. And although the past is surely not a mirror of the future, there are plenty of indications that show the potential of Bitcoin hitting the $5000 benchmark and much more.
Bitcoin Projections – Will Bitcoin Hit $5000?
Fidelity the blue chip brokerage firm has just issued a statement saying that its customers are now allowed to create Bitcoin accounts. Bitcoin is a decentralized currency. Its value is determined by demand and supply.
It is also determined by the internal politics of how the blockchain that Bitcoin is built on is operated. Recently we had the uneventful, even if much anticipated Bitcoin Hard Fork. The fork was uneventful simply because the support shown by transacting clients for Bitcoin remained strong. Bitcoin did not falter – it didn’t even just plough on. It soared to new dizzying heights and traded at above $4000 earlier this week!.
Bitcoin has been anointed as a new asset class by mainstream media with Fidelity. This has given added confidence in the trading and holding of bitcoin as a digital asset.
And it is not just Fidelity that has given the green light to Bitcoin. Plenty of other industry experts and players are predicting a busy future.
In a recent article by CNBC , Independent stock research analyst Ronnie Moas said in early July that he expected Bitcoin to surge 80% and hit the $5000 mark before the end of the year.
Naturally, such hopeful predictions create other questions.
- Should you invest in Bitcoin as a digital currency?
- Is it a good idea to hold Bitcoin be part of your regular portfolio?
- Should you consider Bitcoin as part of your retirement account or IRA?
Will Bitcoin Hit $5000 ? Three Good Reasons Why to Invest in Bitcoin
#1 Bitcoin is gaining mainstream credibility
There is no question that Bitcoin’s murky past and association with shady deals is clearing up. Bitcoin is gaining mainstream acceptance as becoming the new gold. Countries like Japan, are accepting that the currency is a legitimate form of payment. As recently as yesterday Australia is setting the wheels into motion to follow suit.
The credibility level and the cognisance of Bitcoin is certainly growing exponentially. This is yet another reason why the target of $5000 per bitcoin does not appear to be hypothetical. And the question of “will Bitcoin hit $5000”? does not sound like a fairy tale question.
#2 Finance and Industry Experts Are Endorsing Bitcoin as a legitimate asset class
Bitcoin and crypto currencies are becoming much harder to ignore. As the prices surge and market caps grow, digital currencies are also becoming the focus of experts.
In a white paper by Ark Invest and CoinBase – Robert Greer a theory pioneer in assessing asset class said the following:
“Bitcoin exhibits characteristics of a unique asset class — meeting the bar of investability, and differing substantially from other assets in terms of its politico-economic profile, price independence, and risk-reward characteristics,”
#3 Bitcoin is Limited in Supply
In total, Bitcoin tokens will eventually amount to just $21 million. There is not an unlimited supply of bitcoin. It is not a printable asset like FIAT currencies. Therefore, eventually, the supply of Bitcoin is limited.
Up to now, some 17 million Bitcoins have been already mined. It is expected that all Bitcoin tokens will be mined by 2040. After that the supply chain will dry up. Therefore the availability will be what it is.
The market cap for Bitcoin today stands at more than 71 Billion, and although in the vast majority, investors think that this may be a bubble, this value in the world economy cannot be ignored.
You can now trade Bitcoin with 24 Option with a starting capital of just $100
Three Good Reasons Why Not to Invest in Bitcoin
#1 Bitcoin is a Digital Currency and You Will not be able to hold it as a real coin
This is arguably the classic punch line that anyone who does not understand how a block-chain works, uses. It is true that the digital currency is not tangible. However, with the same argument, is the money in your bank account real? If Banks fail, as they did in 2008 Financial Crisis – the value of your bank account will be as good as a burst bubble.
#2 Bitcoin is Very Volatile
Yes, Bitcoin and other crypto currencies are very volatile. Bitcoin has had some major dips. As recently as July, the currency hovered around the $2500 mark in anticipation of the Bitcoin hard fork. It has also witnessed stellar surges – which is why the question of “will Bitcoin hit $5000” has been prompted.
In countries, where Governments are unstable, and the currency in these countries could be worth nothing overnight, Bitcoin is being regarded as a far more stable asset. Countries like Venezuela, Libya, Turkey, Tunisia and plenty more are definitely looking at Bitcoin as a safer option than their own currencies. Therefore, the volatility is rather relative.
#3 Bitcoin Has Been Traditionally Used by Cyber crooks as ransom money
It is true that Bitcoin has been used as medium of payment for extortion fees in cyber crimes. Bitcoin has also been subject to ponzi schemes. It has been known to be a key asset used in the purchase of drugs and arms.
So has cash.
Crime is crime. There will always be crime. With the move of governments to legitimise exchanges and place more transparency and audits on account holders, the net for cyber crime keeps tightening up.
Will Bitcoin Hit $5000? Conclusion
It is likely that if you will be reading this article in a few months, or even a few weeks, this question could be a foregone answer or a fait accompli.
Investing in Bitcoin is not for the feint hearted. You need to not just have a high-risk appetite, but you also need to become properly informed. If you are considering investing in Bitcoin, you should also look at properly storing your Bitcoin.
Despite the fact that Bitcoin is poised to keep climbing, it is still dangerous to think that there is no way that you can lose with Bitcoin. As always investors should exercise caution and due their due diligence.
Author: Mariella S.
Disclaimer: This article is not to be construed as investment advice. It merely reflects the opinion of the author.