Ever since its conception in 2009, bitcoin has witnessed unprecedented growth and has been widely adopted through the world.
The cryptocurrency has been the element pushing the growth of blockchain technologies in financial and non-financial sectors.
bitcoin is gradually overcoming its initial volatility concerns and experts envision great days ahead as it becomes more stable.
These were the sentiments of an analyst in a March 7 feature with CNBC.
Adam Davies has made a prediction that the bitcoin price could increase to $3,000 by the end of 2017.
Adam Davies works as a consultant for the UK Altus Consulting firm, which provides advisory services to established financial organizations on technology-related matters.
At the time of writing, the bitcoin price currently stands down from the year-high price of $1,293 hit in the first week of March.
The $3,000 mark predicted by Adam Davies would mean a 150% and 130% bitcoin price increase from its current and year high prices respectively.
Looking at the history of this cryptocurrency, this seemingly steep percentage increase is not so far-fetched.
Although the cryptocurrency is currently trading below an ounce of gold, during the last 12 months the bitcoin price has increased by 195%, trading above gold in the first week of March 2017.
The reasons given by Davies for his $3,000 bitcoin price mark prediction mirror those suggested for last year’s growth.
These include proliferation and widespread adoption, as well as political and economic uncertainty around the world.
Davies gave an example of the underperforming sterling pound as a result of Brexit.
As more people seek to invest in decentralized digital currencies, a rise in bitcoin price is likely to be witnessed.
Investors mainly aim to tackle insecure markets and fluctuating currencies.
Among other aspects that are driving forces behind the bitcoin price increase include Chinese regulation to fight money laundering and India’s demonetization policies.
In light of these and other events, the bitcoin is being touted as a safe haven in value storage.
Sharing Adam Davies’s sentiments is Blockchain CEO, Peter Smith.
According to CNBC, Peter Smith stated through an email that the bitcoin wallet was witnessing major signups.
Smith pointed out to the possibility of a $3,000 end-year price.
Experts have noted some factors that could work in favor of the cryptocurrency in 2017.
Tyler and Cameron Winklevoss’s exchange traded fund that operates through bitcoin is set to be approved.
This could lead to increased investments by institutions.
Japan, which is at the forefront of bitcoin adoption, also passed a bill that elevates digital currencies to the status of fiat currencies.
This will open doors for widespread mainstream adoption.
Although the idea of $3,000 end-year bitcoin price is exciting, commenters are wary of exceeding the optimistic mark.
Financial analysts and members of the bitcoin community fear that breaking the mark could lead to another bubble, making all the growth for naught.
While 2017’s bitcoin expectations are high, surpassing the $3,000 benchmark too soon could lead to the volatility exhibited in the earlier years of the cryptocurrency.