Value of Bitcoin Reaches All Time High and Beats Gold

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Untouched Bitcoin Volume Reaches All-Time Highs — Two Major Factors at Play

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The amount of Bitcoin BUY NOW (BTC) which has not been transferred in more than five years has reached a new all-time high. This statistic is coupled with overall stability in the price of Bitcoin when compared to the majority of altcoins, leading to a number of suggestions for the cause.

A million bitcoins remain in the possession of its elusive creator, Satoshi Nakamoto. New statistics, however, show that as of July 19, there is a total of 3,847,859 BTC that has remained untouched for more than five years. A number of conjectures about what these statistics actually mean for the Bitcoin network as a whole have been offered.

Bitcoin Transitioning to a Store of Value

Many industry insiders have long argued that Bitcoin is a store of value (SoV) asset similar to gold. With mathematical scarcity, the coin represents a potential hedge against economic chaos. The increasing amount of nonmoving coins could validate this argument as a shift in this direction.

“The amount of Bitcoin (BTC) supply that has been untouched (i.e. not transferred) for at least five years recently reached an all-time high. This potentially signals that BTC is increasingly becoming a store of value, as opposed to a medium of exchange.”https://t.co/GGrqOZHmnT pic.twitter.com/TwJG18lFp7

Satoshi initially described and offered Bitcoin as a currency, or medium of exchange (MoE). However, the decentralization of the network protects the asset from fluctuations due to political or economic unrest. A shift toward SoV from MoE indicates a bullish future.

Human Error at Play

However, in response to the Store of Value argument, crypto Twitter regular Tuur Demeester pointed out that five years is a long time to hibernate and that there is a very good chance that the majority of these stagnant coins have simply been lost.

I’m not so sure… 5 years without updating your cold storage method is a long time in Bitcoin. Imo most of these coins are likely lost. pic.twitter.com/lJmEOiPvY3

Demeester’s analysis would suggest that human error has caused the stasis of most of the untouched coins. Interestingly, he points out that the lack of updating one’s cold storage in more than five years only furthers cements the hypothesis that the coins are lost.

Losses Are Gains

Such losses have far less of an effect on the Bitcoin platform since they do not represent a change in thinking for the community at large. At the same time, losses nearing four million bitcoins only increases the scarcity, cutting the total theoretical supply from 21 million to about 17 million.

Such a supply decrease should increase the price per BTC since the demand is determined by market forces. Evaluating exactly how many coins are actually lost, however, would be a nearly impossible task.

Whether the coins are being stored for their value or have been lost may never be known. Nevertheless, increasing numbers of untouched BTC does limit liquid supply in the marketplace, and in turn, overall scarcity.

Do you think the increasing number of untouched bitcoins comes from loss or from HODLers When traders think about cryptocurrencies, they focus more on how they can profit from the price swings. But, what happens. More ? Will these factors have any significant impact on the price in the long term? Let us know your thoughts in the comments below!

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Value of Bitcoin Reaches All Time High and Beats Gold

Last year everyone was going bonkers for Bitcoin, and that’s no surprise, seeing as how the number one cryptocurrency had an absolutely explosive price performance in 2020. Things have cooled off in 2020 as prices fell significantly, however many are still bullish about Bitcoin’s long-term potential.

To that end, the scarce, deflationary quality of Bitcoin makes it totally unlike traditional fiat currencies, which are usually prone to inflation and even hyperinflation in the worst of cases. That means as more investments pour into BTC, its price will likely continue to see upward pressure because there will be no supply response.

Think about how when the price of oil surges, more companies begin producing oil, which then increases the supply and acutely deflates the price of oil accordingly.

No similar supply response can never happen with bitcoins. There will never be more than

21 million, and even contemporary estimations say more than 3 million BTC have been lost for good, making BTC considerably scarcer than many realize.

That means the BTC could potentially shoot up exponentially in future years. But how high? Let’s take a look at some of the more prominent projections we’ve seen thrown around in recent days.

Wall Street Macro Trader Novogratz Sees $40k BTC

Once renowned for being a prominent Wall Street hedge fund manager, Mike Novogratz has now set his sights on the cryptocurrency space, and he’s not turning back. Running the crypto-based Galaxy Investment Partners, Novogratz is betting big on the Bitcoin boom in general as his mid-term BTC price projection suggests.

“Bitcoin could be at $40,000 at the end of 2020,” Novogratz said. “It easily could.”

And for Novogratz, there’s no confusion as to why that particular price point may end up really materializing. In a November 30th interview on Fox Business, Novogratz unabashedly declared that “Bitcoin is going mainstream.”

And Novogratz knows what “mainstream” and “institutional” looks like; he used to run a Goldman Sachs trading desk in Asia before becoming a hedge fund manager at Fortress. If he thinks the “herd” is coming, as it were, then we all best pay attention.

Going much more long-term, Novogratz said it was within the realm of possibility that the bitcoin market cap could one day reach the current market cap of gold, which is around a whopping $8 trillion USD.

If this reality were to materialize down the road, that would put each BTC around the $390,000 price point.

Max Keiser Projects $15k Soon, $100,000 On The Horizon

Firebrand Bitcoin pundit Max Keiser has never made his love for BTC and its potential a secret.

As such, you’ll commonly find him on Twitter making new price predictions based on the Bitcoin boom’s momentum.

For now, he’s pegging his short-term bitcoin price target at $15,000. That’s a reasonable figure, to be sure, especially with BTC’s parabolic price performance in Q3 and Q4 2020.

Beyond that, though, Keiser has his eye set on the impressive $100,000 BTC price milestone.

Central Banks are capitulating. Path to $100,000 accelerating. Fiat currencies going the way of Cowrey shells. Nation states, as we’ve known them, are dead. #Bitcoin is God. The day of reckoning is upon us. pic.twitter.com/OVhSRg73cB

Adam Back Agrees: $100k Coming

Love him or hate him, Adam Back is an OG cypherpunk who’s made incalculable contributions to the cryptocurrency space as a whole. There’s a reason Satoshi Nakamoto reached out to Back (and Wei Dai) first in starting up Bitcoin.

In other words, Back’s been around the block once or twice. He knows the ecosystem as well as anyone.

And it’s his opinion that the next major target for the bitcoin price to hit is $100,000, echoing Max Keiser’s aforementioned prediction.

Right with the institutional interest and news expected next year, be careful selling: only sell what you can afford to. $100k is the next number. (Or with 1,000,000:1 stock split 1c=1bit, next number is 10c/bit.) https://t.co/2ldMTpWhzG

In a recent tweet, Back even went as far to say that users should “be careful selling” bitcoin in 2020 because the price could rocket so acutely over the next 12 months that people would’ve made considerably more by just holding.

John McAfee: Bitcoin $1,000,000 Each In 2020

John McAfee is best known as the creator of the popular McAfee antivirus software. He’s also become a Bitcoin aficionado over the past several months, and he never hesitates to voice his opinions on the cryptocurrency craze accordingly.

And his opinions are exceedingly bullish, to say the least. McAfee was projecting $500,000 BTC in 2020 just a few weeks ago, but he modified his claim to be even more bold as bitcoin’s market surge has been moving faster than he anticipated.

Now, McAfee thinks $1 million per bitcoin will be reality by the end of 2020. That’s almost an unfathomable possibility at the moment, but maybe we haven’t seen anything yet. Especially if institutional interest keeps exploding.

When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2020. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD

But McAfee has even bolder ideas, to be sure. In an even newer Twitter exchange, McAfee explained that he believes the BTC price could reach into the billions one day.

Specifically, the tens of billions as he argues:

There are only 21 million Bitcoins. There are 2 billion working people in the world. Final Bitcoin value = (average individual economic productivity) × (number of productive people) ÷ (21 million). A GROSS simplification, but the answers is in the tens of billions $ per coin.

That’s certainly the most aggressive price prediction anyone’s made for BTC yet. But if that insane price materializes, McAfee will end up looking like even more of a madman genius than he already is.

Falkvinge Sees $2-5 Million Bitcoin As Possible

Swedish Pirate Party founder Rick Falkvinge is a big proponent of Bitcoin Cash (BCH), going so far as to sarcastically call himself the CEO of Bitcoin Cash.

But that doesn’t mean he doesn’t respect the beast that BTC is and could be.

“Bitcoin] can easily go to more than $1 million per bitcoin.” Falkvinge said during a recent interview. But that’s just Falkvinge’s conservative estimate. He’s actually more bullish than that, asserting that BTC can go as high as $5 million:

“If cryptocurrency fulfills its promise, and there’s no indication it wouldn’t, then the equivalent of one bitcoin needs to be in the $2-5 million dollar range.”

Tim Draper

The cryptocurrency expert and venture capitalist, Tim Draper, has also given its opinion about the future price of Bitcoin. According to him bitcoin and blockchain technology are one of the best things that happened for businesses.

Mr Draper said in 2020 that Bitcoin could reach $10,000 in just three years, something that happened in 2020, exactly on the date he predicted. When he explained that bitcoin could reach that price ($10,000), the cryptocurrency was traded just at $413 dollars.

At the same time, he said that in the future Bitcoin could keep growing. About that, he is convinced that the cryptocurrency is the future and that the virtual currency market will gain its place among fiat currencies.

“Bitcoin is the future currency. Why would I sell the future for the past? Why would I go and grab some weird fiat subject to the will of some governments?” he commented during an interview with Bloomberg.

“The world market for cryptocurrencies is 6 trillion dollars, and I think that that it will be crypto. And I am really excited about all the extraordinary things that can happen because of crypto and bitcoin.”

Cameron Winklevoss

Cameron Winklevoss is one of the two popular Winklevoss twins. The co-founder of the cryptocurrency exchange Gemini, stated that bitcoin could be worth 40 times its current value.

In order to explain why bitcoin could grow up to 40 times, he compared the cryptocurrency market capitalization with the market cap of gold.

During an interview with CNBC he said:

“So if you look at a $100 billion market cap today, now last week it might have been more like 200, so it’s actually a buying opportunity, we think that there’s a potential appreciation of 30 to 40 times because you look at the gold market today, it’s a $7 trillion market. And so a lot of people are starting to se that, they recognize the store of value properties.”

He has also said that due to the fact that bitcoin has a fixed supply, it is still a very underappreciated asset. Indeed, he stated that he and his brother believe that bitcoin disrupts gold.

The Winklevoss twins emphasized that they will not sell their bitcoins even if the price surpasses $380,000 dollars. This is a special number, because if bitcoin reaches this price level, its market capitalization will be equal to gold’s market valuation.

Jeet Signh

An important portfolio manager that worked for more than six years in the cryptocurrency world, predicted this year that Bitcoin could reach $50,000 dollars. While speaking at the World Economic Forum in Davos, he brought some calm to the cryptocurrency market. “Bitcoin could definitely see $50,000 in 2020.”

At the moment of the statement, Bitcoin was traded over $11,000, days later it reached the lowest point in months when it was displayed in cryptocurrency exchanges under $6,000 dollars.

But Mr Singh said that the kind of volatility that bitcoin experienced is not unusual nor unexpected. And that’s confirmed when we pay attention to the charts. In the past, Bitcoin suffered important corrections in just a few days.

Mr Singh commented:

“If you look at Microsoft of Apple when they went public their stocks were very volatile because the market wasn’t mature. There are not so many vendors right now who can accept cryptocurrencies but there’s huge adoption on the black market.”

Cryptocurrency adoption keeps growing all over the world. In past articles we wrote that enterprises are investing in blockchain technologies and virtual currencies. Businesses all around the world, including small shops and merchants, are adopting bitcoin and other currencies as a means of payment.

If the adoption trend continues, bitcoin could lead the market towards new all time highs. Additionally, payment processors are working with cryptocurrencies trying to spread their benefits.

What’s the BTC Price if Crypto Market Reaches Stock Market Size?

Let’s get really speculative just for the purposes of illustration the growth that’s possible in the coming years.

The current market cap of all global stock markets is around $100 trillion USD. Woah, right? Accordingly, let’s say that the entire cryptocurrency market one day reaches this $100 trillion cap.

And let’s also say that BTC maintains its current position as hovering around a 50 percent share of the entire crypto market (though, of course, there’s no reason to believe it’ll stay at 50 percent forever).

That would put Bitcoin as having around a $50 trillion market cap. At this point, all we need is to divide $50 trillion by the number of bitcoins in existence.

Let’s go with 17 million instead of 21 million since many bitcoins have been lost already.

Alas: $50 trillion divided by 17 million =

$2,941,176. Round up, and that’s $3 million per bitcoin.

Now, we can’t count our eggs before they’ve hatched. There’s still quite the mountain to climb for the crypto market to get even close to hitting $100 trillion. But maybe it’s possible in 30 or 40 years. Maybe not at all.

It’s going to be a wild ride no matter what happens between now and then, that much is for sure.

Bitcoin Price History

As the first cryptocurrency, Bitcoin’s long price history should come as no surprise. Bitcoin was created in 2009 by Satoshi Nakamoto, an alias for a person or group who has still not been revealed. Over the years, it has hit many highs and lows, To better understand the past of this cryptocurrency, as well as its potential in the future, take a deeper delve into its history.

The First Transactions

The very first transaction involving Bitcoin occurred between an early adopter and Nakamoto in January 2009. The first transaction in the real world is the notorious instance when a Bitcoin miner chose to buy pizza from Papa John’s. He famously spent 10,000 Bitcoins to buy two pizzas in 2020 in Florida. That transaction alone perfectly shows the dramatic change in value that Bitcoin has experienced over the years.

2020 and Earlier

The very first major jump in Bitcoin price took place in July 2020. At this point, the value of Bitcoin went from about $0.0008 all the way up to $0.08, a truly dramatic increase in price. At this point and in the following year, very few exchanges supported trading of Bitcoin. There was also extremely limited liquidity at this time due to cryptocurrency still being relatively unknown. That meant that when the price started an increase in June 2020 from about $0.95, the approach was among the steepest recorded. Unfortunately, the drop also followed suit. By mid-June of that year, Bitcoin was up to $320, an all-time high. By November, it had declined 94 percent all the way to $20.

January 2020 Crash

Following this dramatic fall, investors were hesitant about Bitcoin. 2020 began with Bitcoin at $4.50. During January, it got back up to $7. This time, the crash occurred before Bitcoin reached its previous high. Once it hit $7.40, it went back to $3.80, a decline of 49 percent.

Rallying Prices in Late 2020

2020 saw the beginnings of Bitcoin’s rise to fame. It began the year at around $13.50. By April 2020, it was briefly above $220. This was short-lived, however, going back to $70 by the middle of April. This crash was much more significant than the earlier ones, with some calling it the first true crash.

That crash was made up for by a rally in October and November of that year. By early October, Bitcoin was at about $100, and it hit $195 by the end of the month. In November alone, Bitcoin had an unbelievable rally, going from $200 to more than $1,120. The causes of this rally were fairly obvious to most people, as more miners and exchanges were supporting Bitcoin. In addition, China had entered the marketplace.

The Aftermath of 2020

Unfortunately, these new highs for Bitcoin were so far from the past figures that the price was very volatile. The volatility was fueled by rumors of poor security on Mt. Gox exchange, which was part of about 70 percent of Bitcoin transactions of the time. This was likely a contributing factor in the drop of Bitcoin’s price from $1,230 on Dec. 4, 2020, to $750 by Dec. 7.

There was some trading stabilization in January 2020, with the price staying about $920. When Mt. Gox filed for bankruptcy protection in February, another Bitcoin crash occurred. Between Feb. 4 and 16, it declined about 71 percent from $911 to $260. By March, it had recovered to about $620.

From there, the price of Bitcoin hit a more gradual decline. In mid-July 2020, Bitcoin was priced at about $600, which dropped to just $315 by early 2020. It remained stable over the summer before spiking in November up to $460. By the end of November, it was back to about $360.

2020: The Leadup to the All-Time High

The most recent exciting news in Bitcoin history began in November 2020 and led to the current all-time high for the cryptocurrency. In 2020, Bitcoin went from trading at just over $900 to about $20,000. This was a journey with many ups and downs along the way, a drop in trading volumes due to the People’s Bank of China tightening oversight of Bitcoin exchanges and the U.S. Securities and Exchange Commission rejecting a Bitcoin exchange-traded fund.

Summer of 2020 saw Bitcoin reaching a new all-time high. In May, it hit $2,000 for the first time ever, and just a few weeks later, it was already over $3,000. Unsurprisingly, each new milestone was followed by a quick drop in price and other turbulence. Even so, the rally was enough to continue the upward trend, reaching $5,000 in September before dropping back to $3,000 and rebounding by mid-October. From there, Bitcoin had a steady rise.

Reaching the All-Time High

By December, Bitcoin was on track to hit its all-time high thanks to a dramatic and steady increase in price. On Dec. 17, 2020, it reached $19,783.21, the all-time high that has yet to be broken. Unfortunately, that high was followed by a drop of about 30 percent, with a market correction that brought it down to under $11,000. The price did recover, reaching $16,000 again on Dec. 27.

The Bitcoin Crash in Early 2020

After Bitcoin nearly reached $20,000, it was not able to maintain those figures. January did see a high of over $17,500 around the 7 th , but this was short-lived and followed by a steady drop. By the end of January 2020, Bitcoin was at just over $10,000. By Feb. 5, it was under $7,000. It rallied again, getting over $11,000 in early March, but this was followed by a drop back below $7,000. The largest recent high for Bitcoin was in early May, when it was above $9,500. By late June, it was under $6,000. Following a rise to more than $8,000 in late July, Bitcoin has remained around $6,000 to $6,500, other than a brief spike up over $7,300 in September.

Bitcoin virtual currency reaches all-time high price

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The value of virtual currency Bitcoin has reached an all-time high, trading at more than $33 (£22).

Its appreciation – up from just $2 in November 2020 – has been attributed to increased trust in security efforts.

The surge coincided with Japan-based MT Gox, Bitcoin’s biggest exchange, announcing a tie-up with US firm CoinLab to bring its operations to the States.

However, recent high-profile thefts continue to worry some investors.

In September last year, 24,000 Bitcoins – which at the time were worth £157,800 – were stolen from another large exchange, Bitfloor.

In June 2020, a huge instance of fraud led to a market crash, with the value of Bitcoins at one point plummeting to almost zero.

But since then the currency has steadied somewhat, thanks in part to adoption by key websites such as Reddit and Kim Dotcom’s file storage site Mega.

Other reasons given for the rise in value include the popularity of gambling websites accepting the currency. Bitcoin casinos have been reported to be bringing in about $500,000 (£330,000) profit every six months – with more growth expected.

‘Light years ahead’

Unlike other currencies, Bitcoins are not issued by a central bank or other centralised authority. Instead they are created in a process called “mining”, in which coins are issued to a user when they solve a complicated mathematical problem using their computer.

Part of the attraction is they can be used to make transactions that are difficult to trace, offering privacy to their users, and the currency has been adopted by Wikileaks and other sites to receive donations.

Bitcoins can also be exchanged for “real” money – the value of which is tracked by services like Mt Gox.

Mt Gox’s move to the States was announced in a statement from Peter Vessenes, chief executive of CoinLab, the firm that will administer the exchange in the US, in partnership with Silicon Valley Bank.

“There are two major difficulties Bitcoin exchange customers have traditionally faced: banking troubles for the underlying exchange, and security of their coins,” he said.

“When our team discussed how to tackle these issues in the US, it seemed clear that Mt Gox had by far the best security record in the Bitcoin exchange landscape.

“After I personally came to Japan and audited their fraud and security procedures, I understood why – they are light years ahead of other exchanges at this stuff – the fraud and security experience (some of it hard-won) they bring to the table is incredibly impressive.”

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