We have seen a lot of speculation when it comes down to the bitcoin price and mass adoption of blockchain technology, alongside with its digital currencies. A lot of the pessimists and your typical haters were having a feast after our beloved forefather of digital currencies plummeted into an abyss for the first time after peaking at $1,200. Five years later and we have climbed to never before seen heights of $6,850 per ONE bitcoin! If you spent $100 to buy bitcoin when it was valued at $0.01 then today's price means that you have pocketed $68,500,000.00 U.S. Dollars. Talk about bitcoin creating millionaires out of peanuts!
Bitcoin Market More Stable Due To Hedgefunds Long-Term Positions
Back in the early days of bitcoin, money that was coming into it came from the early enthusiasts which mean that median sum was rather small. There were people buying up BTC in high volumes back then as well just it wasn't nearly as spread as today. When you have a lot of small orders coming in while people jumping off the boat in bigger amounts (early mined coins) then that will result in fluctuating price. We all know that bitcoin supply is limited to 21 million units out of which about 24% are not mined yet, nevertheless, this sets the ground for huge scarcity. A lot of the big hedge funds have started diversifying their portfolios into blockchain currencies and assets, especially now with bitcoin becoming much more of a white-collar currency, instead of being associated with only illegal dark web transactions. What does this mean for an overall bitcoin ecology? Big hedge funds taking long-term BTC positions are effectively taking, even more, bitcoin out from the active circulation.This in result drives up prices because of bigger "effective" scarcity. Any blockchain community member HODL'ing their crypto is helping along with price appreciation.
Bitcoin $10,000 Before The Year Is Out?
Some of the crypto connoisseurs started speculating about bitcoin reaching the price of $10,000 as early as we broke the $2,000 mark earlier this year but while many people decided to laugh at such remarks then now it seems like we are on the path to breaking that! One thing that is certain is that no bitcoin fan out there has anything negative to say about this bull run! Long live blockchain technology and the digital currencies!