Is $ 100,000 worth of Bitcoin possible?

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ALL CRYPTOCURRENCIES ARE BASICALLY SIMILAR

Bitcoin, Ethereum, and other cryptocurrencies all have one basic attribute: Cryptocurrencies are private money transfer processes.

All cryptocurrencies operate in a decentralized control system. This allows transactions to bypass the oversight of a central banking system; which is attractive to avoid regulation and taxation.

Other than that, there are no fundamentals. Most certainly, there are no basic principles that differentiate the different crypto raffle candidates; and nothing that would command a 15-1 price differential for Bitcoin over its closest apparent competitor, Ethereum.

So, again, we ask? What Makes Bitcoin Worth $ 60,000? Does Bitcoin today occupy a prominent position in its respective industry comparable to that of Ford Motor Company a hundred years ago?

BITCOIN AGAINST FORD AND SONY

A century ago, the name Ford was synonymous with automobile. Other automakers have offered variety and choice to potential customers, which has tarnished Ford’s conservative image and the lack of alternatives for buyers.

General Motors replaced Ford as the barometer of the automotive industry, and GM maintained its status as an automotive icon for many decades.

Not too long ago, some 40 years ago, Sony set the standard for retail electronics (televisions, CD players, etc.). The advent of home video playback (VCR) and recording devices was marked by Sony’s newcomer, Betamax.

Unfortunately for Sony, they seemed as stubborn as Henry Ford when it came to customer choice and new technology. Sony refused to offer a product in the new VHS format and ultimately lost a considerable market share.

Is Bitcoin on the verge of something similar to what happened with Ford or Sony?

RISK VS. REWARD FOR BITCOIN

Whatever one thinks about the fundamentals of Bitcoin, it is very true that Bitcoin has turned out to be a speculation of enormous importance. The question is “Can Bitcoin maintain and increase its high price?” “

The 52 week low for Bitcoin (BTC-USD) is $ 12,980; that’s where he was sitting about a year ago. Recently, it set its most recent 52-week high at $ 66,930.

That’s over five times more in less than a year; a gain of over 400 percent.

Along the way, however, the price of Bitcoin has nearly halved after hitting the $ 60,000 plateau earlier this year. That’s a lot of volatility for investors with a delicate stomach.

By the end of Bitcoin’s phenomenal price explosion in 2017, it peaked at just under $ 20,000. Then its price imploded even more dramatically, dropping to the $ 4,000 level in 2018.

Volatility aside, the odds are not favorable for those looking for much higher prices for Bitcoin.

When it approached the price of $ 20,000 at the end of 2017, Bitcoin’s increase could be measured in percentages counting in the thousands.

After its subsequent drop from the $ 20,000 level, Bitcoin’s price did not exceed $ 20,000 until three years later, in December 2020; in essence, zero return for three years.

At $ 60,000, Bitcoin has only risen two hundred percent since then. This is nothing compared to Bitcoin’s percentage gains in its early years before 2017.

The wait for Bitcoin to hit $ 100,000 is really not that appealing and doesn’t really entice someone who owns it at $ 60,000.

Given Bitcoin’s history of volatility, the odds of a price drop of $ 40,000 from its current price of $ 20,000 are equally realistic – and perhaps more likely.

Kelsey is the author of two books: INFLATION, WHAT IT IS, WHAT IT IS NOT AND WHO IS RESPONSIBLE FOR IT and ALL HELLO THE FED!

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