5 reasons pushing ‘Bitcoin’ to reach $100,000

2017 was Bitcoin’s biggest year since its inception in 2009. In 2018, Bitcoin is expected to continue to be a topic of concern for many people. Definitely no different from last year’s interest. Especially about investing in Bitcoin until it can create wealth for investors. 

Of course, investors pouring money into Bitcoin They all want prosperity from the money they invest. Especially since at the beginning of 2017 Bitcoin was still worth just $960 per Bitcoin. But by New Year’s Eve, the value of Bitcoin had jumped to close the year at over $13,850 per Bitcoin. Representing a growth rate of more than 1,300%, there is no way to invest in this world that has already been invested. You will get results back in the thousands of percent. 

That is why Bitcoin is considered It is a digital bubble waiting to burst and fall to the ground. However, no one can say for sure right now. When will Bitcoin be a bubble? In contrast, before the Bitcoin bubble burst, Until it cracked into tiny pieces. Not sure that Mainly for reasons of supply and demand. It may also push Bitcoin to have a chance to reach the $100,000 mark per Bitcoin as well.

So what exactly is the reason that drives Bitcoin’s value to such a high level?

There is a limited supply of bitcoins.

Getting Bitcoin At this time there can be said to be two main methods: 1. Bitcoin mining. By using a computer with high processing power or 2. Exchanging real money for Bitcoin currency. 

However, there are differences between digital currencies and commonly used regular currencies. The currency system that we use in everyday life Can be printed continuously to replace it, but digital currency (here referring to Bitcoin) has a limited amount by all money within the Bitcoin system It is estimated that there are approximately 21 million Bitcoins, meaning that the number of Bitcoins spawned is limited. When it’s limited The price of exchanging Bitcoin must be very expensive. 

The reason why the number of bitcoins is capped at 21 million is something the creator of Bitcoin had planned in advance. This is because they want to find a way to prevent the problem of inflation. Every 4 years, the number of bitcoins mined is cut in half. And because Bitcoin is a closed system As a result, no one can ‘inject’ Bitcoin into the system like the government of a country orders to inject money into the national economy.

Afraid of missing the train

Nowadays, when investing in the stock market , we often see small investors become moths and fly into the fire by buying one of the hottest stocks. The case of Bitcoin is no different. Because there are still many investors in Bitcoin. who do not want to miss the train causing the Lemming Effect event, as if someone Someone (maybe a friend or acquaintance) is holding Bitcoin. It makes new investors want to invest in Bitcoin as well. But how much do you know the ins and outs about investing in Bitcoin? This one is also suspicious. 

Such investments may cause the price of Bitcoin to surge higher.

Big players ‘hoard’ Bitcoin

according to personal opinion I think that whether investing in the stock market or Bitcoin, what they have in common is the bookmaker. Investing in Bitcoin It is believed that there are many Bitcoin bookmakers who have Bitcoins in their hands. These dealers may choose to hoard bitcoins. Then they may use methods to create news and stories so that the value of Bitcoin will increase as high as desired. (But after that, will they sell Bitcoin to make the price fall or not? There is a chance of this happening as well.)

 

Lack of confidence in the traditional financial system

The advent of bitcoin in 2009 was accompanied by the financial collapse in the United States. Also known as the subprime crisis. causing many financial institutions to go bankrupt That has caused many people to lose faith in the financial system. and turn to a new type of financial system that does not depend on the banking system that controls the flow of money in and out to being independent from government agencies

 

It may be necessary to add that Another unique feature of Bitcoin is that it is a currency that does not depend on any one country. But it can be the middle currency. It also has its own freedom. and is not determined by government agencies. But it depends on supply and demand in the financial system. Moreover, because Bitcoin uses the basic technology of Blockchain (Blockchain) , which has a format for storing data distributed in blocks. without keeping the main data in a centralized location Therefore, it is considered to be more private than the traditional financial system.

reliability

In this matter, it must be said that The latest state of Bitcoin is not very trustworthy. Especially in Asian markets where they are still more cautious and repressive than fully accepting their use. While Bitcoin adoption in the West seems to be opening its doors with open arms, 

This issue is believed to have reached the point where most people Including those who have authority to set policies to accept Bitcoin. It should make digital currency widespread. The number of users is growing. Including independent exchange transactions in the system.

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