We told you so. There, I said it. I don’t mean to be smug, but I did tell you. I said that the bitcoin price would continue to rise. It will go up and down. And it will be a wild ride. But, long term, it’s going to be substantially higher than it is today.
In fact, my long-term forecast still remains at over US$50,000 per bitcoin.
That’s still some way off from here, but we’re on the way.
What is happening to the price of bitcoin?
For the last three years bitcoin has been going through a difficult back-and-forth about how to scale. While bitcoin has become widely known, it has yet to properly reach the masses.
One of the biggest reasons for this has been its inability to match the pace of mainstream adoption. Millions of people are now starting to get their hands on bitcoin. Yet the actual blockchain (the technology behind bitcoin) has not been able to maintain the pace.
That all changed last week with the implementation of Segregated Witness (SegWit) and the forking of Bitcoin Cash. To keep it simple, the changes mean bitcoin should be able to steadily scale and become more appealing as a payments system to the masses, while also paving the way for future innovations. Leaving bitcoin cash to go about its own business.
What we did see however was the price of bitcoin falling in the lead up to this scaling situation and, ultimately, the hard fork. We call this kind of behaviour in the crypto world FUD. It stands for Fear, Uncertainty and Doubt.
This FUD phenomenon is a great time to build up holdings in crypto, as quite often the mainstream (or the uninitiated) let their FUD get the better of them. But if you’re up to speed with how crypto works and what its long-term potential is like, it presents buying opportunities.
Since the FUD has calmed down, bitcoin’s price has been going off! In the last 24 hours, bitcoin punched through AU$4,200 per bitcoin. That’s enormous.
Just 22 days ago (when FUD was at its peak), bitcoin was trading at AU$2,469. Now it’s over AU$4,200. This is the kind of wild volatility that bitcoin currently has that scares a lot of people.
But if you understand it and know how to play these peaks and troughs, you could potentially stand to make yourself a small fortune investing in it. But as I say, you need to understand why and how it all works.
If you want to know more, and you’re keen on getting a slice of this action, start here. Read my book, Crypto Revolution: Bitcoin, Cryptocurrency and the Future of Money, and get started on your crypto journey today.
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