Bitcoin Price Soars to New All-Time Record High Above $4,600

The number one digital currency has gone and done it again. The bitcoin price has scaled to over $4,600 for the first time, pushing its market cap value to over $76 billion.

At 13:54 UTC, on the 29th August, the bitcoin price was recorded at $4,602. As a result, the combined market value soared to $164.4 billion.

At the time of publishing its price has dropped to $4,542. However, it marks a significant time for the digital currency.

Since the beginning of 2017, the bitcoin price is up by around 350 percent from roughly $1,000 on the 1st January. It has since quadrupled in value. On the 13th August, bitcoin finally managed to scale the $4,000 mark amid strong Japanese interest. Geopolitical turmoil in North Korea has also impacted its price as investors continue to consider it as a safe haven.

The week prior to that the bitcoin price had re-scaled the $3,000 mark when it reached $3,200 for the first time. Since then it has continued its upward trajectory, pushing the currency to new heights.

Ethereum Scales $360

Ether prices have also surged to new heights not seen in two months.

At the time of publishing, ethereum is trading at $369, pushing its market cap to $34.8 billion. In 24 hours it has risen by 7.30 percent whereas in seven days it has increased by 17.24 percent.

As can be seen from the chart below, ethereum’s price dropped to a low of $149 on the 16th July. Since then it has steadily been climbing up in price back to its current listing. Prior to dropping to $149, ether prices were trading below $400, at $391. It has yet to re-scale to that previous high. However, with its steady price gains it’s expected to see new heights.

Litecoin Climbs Above $60

Fifth-placed litecoin has also recorded new highs. Strong trading has helped to push its price over the $60 mark for the first time.

This price rise is due to increased trader interest from Japan and Korea. According to a report, Korean exchange Bithumb was responsible for over 20 percent of trading in litecoin in the past 24 hours.

At the time of publishing, litecoin is trading at $62.51, with a market cap value of $3.2 billion. In the past 24 hours its value has decreased by 1.07 percent. Meanwhile, in seven days its has risen by 34.13 percent.

At its peak, litecoin was trading at $64.92 on the 28th August. Yet, considering litecoin was trading just above $4 at the beginning of 2017 this is a significant milestone. It remains to be seen how much further the currency can go.

Charlie Lee, the founder of litecoin, recently took to social media to express his delight.

New Price Heights

What we are witnessing now, however, is just the start. According to Ronnie Moas, Standpoint Research founder, he predicts great things for the market.

Back in July, Moas said that bitcoin would reach $5,000 by 2018. He also said that ethereum would rise to $400 whereas litecoin double to $80.

At the time Moas said:

“$5,000 could happen in a few months. It’s only starting to gain traction right now. It’s starting to spread like wildfire right now.”

He determined that its price would go up as demand increased for its coins. At present, 16.5 million coins out of the capped 21 million has been issued.

Since making his prediction in July, Moas has increased the value to $7,500. This was after the bitcoin price scaled $4,000. He believes, though, that by 2027 each unit of bitcoin will be worth $50,000.

Furthermore, Moas thinks that the combined market cap will reach $2 trillion in 10 years. At a conservative estimate, he thinks that one percent of the $200 trillion global market will be invested in cryptocurrencies.

He said:

“A lot of people say there is a bubble out there. I see a bubble when you get down below the top 50 cryptocurrencies. There are more than 800 names right now. In my view, what happens outside the top 50 is irrelevant.”

Whereas, Aurelien Menant, CEO of regulated digital currency exchange Gatecoin, has said in the past:

“I would not be surprised to see the bitcoin price doubling again to around $6,000 by the end of the year.”

One bullish analyst thinks bitcoin’s price will reach $15,000 by the end of 2017. Even though there are only four months left of the year veteran trader masterluc has great confidence in bitcoin. Masterluc is of the opinion that bitcoin will continue its bull run into 2019. At which point he thinks that its worth will between $40,000 and $110,000.

Long-Term Price Heights

Others, however, have been thinking long-term for the currency’s future. So much so, that Dennis Porto, bitcoin investor and Harvard academic thinks it will scale $100,000 by February 2021. He thinks this is possible by simply following Moore’s law.

However, Kay Van Petersen, Saxo Bank analyst thinks it will reach $100,000 by 2027. Many may have confidence in Van Petersen’s prediction considering he correctly predicted when bitcoin would reach $2,000.

Some less bullish estimates include one from Tom Lee, a strategist at Wall Street firm Fundstrat. He thinks that bitcoin’s worth will be between $20,000 and $55,000 by 2020.

In a report, Lee said:

“We believe one of the drivers [of bitcoin] is crypto-currencies are cannibalizing demand for gold. Based on this premise, we take a stab at establishing valuation framework for bitcoin. Based on our model, we estimate that bitcoin’s value per unit could be $20,000 to $55,000 by 2022.”

At the time Lee’s prediction was considered bullish. However, since then others have made bigger predictions for the currency.

It remains to be seen who is right. Yet, at present it seems that the market will continue its upward trajectory to reach new heights.

Caution Urged

Interestingly, Llew Claasen, the executive director at the Bitcoin Foundation, has urged investors to be cautious with their investments.

Speaking at a recent conference in Africa, Claasen spoke about the potential bitcoin has in the continent. Yet, he stated that users should only invest what they can afford.

He said:

“To be honest bitcoin is not a great form of cash right now. Don’t think of it as cash, think of it as a digital form of gold that enables you to save outside of the current financial climate.”

Featured image from Shutterstock

Saxo Bank Analyst Believes Bitcoin Could Reach $100,000 in 10 Years

An analyst who rightly predicted that Bitcoin would reach $2,000 in 2017 has gone on to predict greater things for the digital currency in the future, claiming that it can reach $100,000 in 10 years.

In December 2016, Denmark-based Saxo Bank released a report called Outrageous Predictions for 2017. At the time, the price of Bitcoin was trading around the $750 mark and seemed a long way from attaining anything what we’ve seen so far in the first half of 2017.

In the report, the bank made a number of forecasts on an array of things such as Brexit, stocks, banks and commodities around the world. It also mentioned Bitcoin. More specifically, Kay Van Petersen, a global macro strategist at Saxo Bank, predicted that under Trump’s presidency and his spending ‘binge,’ which would push the dollar sky high, emerging markets would be forced to seek alternatives.

This, in turn, produces an ideal environment for Bitcoin to test the $2,000 mark, he adds, which it did when it reached that price on the 21 May, 2017. It subsequently continued achieving new heights where it nearly attained $2,800 before falling back down to $2,300 on 30 May after a price correction saw its bubble burst.

Now, though, Van Petersen is back with new predictions and is looking ahead toward the long-term growth of the digital currency.

Bitcoin at $100,000?

Quoted in a report from CNBC, Van Petersen is reported as saying that in 10 years, ‘bitcoin’s market capitalization would be ten times the average daily volume, giving a figure of $1.75 trillion for the market cap.”

In 10 years time, there will be 17 million Bitcoin in circulation, which, when divided by $1.75 trillion, would equate to each Bitcoin being worth over $100,000.

Not a bad estimation considering how far the digital currency has come in its relatively short life span and the fact that it has achieved so much in the first part of 2017. With the price of Bitcoin steadily rising, it seems probable that Bitcoin could quite easily reach $100,000 in 10 years.

However, while Van Petersen states that his prediction is ‘conservative,’ he believes in the future of digital currencies.

“This is not a fad, cryptocurrencies are here to stay. 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.”

It is hoped that improvements to Bitcoin scalability issues will put an end to the gridlock that many users are experiencing with their unconfirmed transactions. This is one problem with the currency that the community is struggling to resolve in a timely fashion.

On the 24 May, the Digital Currency Group (DCG), which represents 56 companies in 21 countries and makes up 83.28 percent of hashing power, $5.1 billion monthly on chain transaction and 20.5 million Bitcoin wallets, revealed that a scaling agreement had been reached for the activation of Bitcoin Core’s Segregated Witness (SegWit) and a 2MB hard fork implemented within six months.

The agreement also lowered the threshold for activation from the original 95 percent to 80 percent of the network’s mining power. The arrival of this news also pushed the price of the digital currency up to over $2,300 for the first time.

In an interview with CoinGeek, Massachusetts-based software developer Gavin Andresen, was hopeful that a solution will be reached to ensure Bitcoin’s future:

“I’m hopeful the agreement announced today (SegWit plus a 2MB blockchain increase) finally breaks the gridlock. I think everybody using the Bitcoin blockchain and all the companies that have to deal with customers that are using the Bitcoin blockchain see that network is near a breaking point.”

Room to Grow

When Bitcoin first came on the scene in 2009 there were only a few select people who truly understood what is was and what Satoshi Nakamoto was attempting to achieve with it.

Now, the digital currency is known all around the world, is accepted in many shops in various countries and is undertaken as a form of payment for countless day-to-day services. Not only that, but several people have undertaken round-the-world trips only using Bitcoin as a form of payment.

In such a short time, Bitcoin has managed to demonstrate it has real world value, but it also has plenty of room to grow and expand on what it’s doing at the moment. Van Petersen believes that, with time, these developments will appear.

“Volumes are going up, volatility is going down. A lot of people talk about the volatility, but if you are in Zimbabwe or Venezuela, this volatility is nothing. This is the interesting thing to me. I think in the West, a lot of people view it is as speculative, but emerging markets will get it, their needs will be different.”

Growing Risks for Investors?

Interestingly, while Van Petersen is predicting great things for the future price of Bitcoin, a report from the Nikkei, states that with soaring Bitcoin prices, investors face growing risks.

Unlike investments in assets such as stocks where price-earning ratios and other measures aid investors’ decisions, when it comes to digital currencies there is ‘almost no yardsticks for investment,’ the report states.

It’s not surprising that there have been comparisons to the Dutch tulip bubble in the 17th century, and yet, the buzz around the price of Bitcoin and where it’s heading hasn’t done anything to stem its flow.

It’s because of this that the digital currency community remains excited about the path that the currency is on and what it achieve in 10 years time. Within that time could we be using the currency more easily and freely in shops and how we undertake our day-to-day transactions? Will banks be less relied upon? And just as importantly, will we have reached a solution to the cryptocurrency’s scaling issues by then?

Who knows, but if Bitcoin is to reach $100,000 in the next decade, it would certainly be an exciting time for the digital currency community. So much so, that it may even be worthwhile holding some Bitcoin in a secure wallet to reap the rewards further down the line.

As of the 1 June, 2017, the price of Bitcoin is trading at $2,440.

Featured image from Flickr via tiendientu vietnam.