The Ever Climbing Bitcoin Price
There are few certainties in life. Death and taxes is what they say. But there soon could be a third — the ever climbing price of bitcoin.
I’m joking of course. But to some, bitcoin’s price climb was inevitable.
This year, bitcoin is up more than 1,000% .
It’s broken various milestone figures.
When the digital coin rose past US$7,400, the coin immediately dropped. But rapidly rose past US$11,000 over November and December.
Source: Coin Desk
Clearly, the buzz around bitcoin is driving the price up to new highs. But at what price will it stop?
To be honest, I have no idea. Right now I believe the investors have a serious case of FOMO (fear of missing out). They’ve seen others make three, five and 10-times their money on the coin, so they want in.
It’s not just individual investors trying to get exposure to bitcoin. Hedge funds are also trying to get exposure to the coin.
The Bitcoin Market
The bitcoin market is quickly surpassing some of the richest people and most valuable companies in the world.
Bitcoin’s market is now worth more than US$192 billion.
That’s more than both Bill Gates’ (US$90 billion) and Warren Buffett’s (US$83 billion) net worth combined. And it’s also passed blue chips like PepsiCo Inc [NYSE: PEP], Boeing Co [NYSE: BA] and McDonald’s Corporation [NYSE: MCD].
So what’s next for bitcoin? Maybe it will climb even higher. There’s plenty of money not in bitcoin that would love to earn double digit returns in a day.
However, it could just as likely fall, as investors who have been in since early this year sell out and crystallise their profits.
If you’d like to know more about the secret world of bitcoin, click here.
Junior Analyst, Money Morning