The flow of conflicting opinions on the future of Bitcoin does not seem to be drying up. Though many of these assessments have been based on just gut feeling or even wishful thinking, one new report claims the BTC prices may actually shoot up in the coming months.
The logic behind this prediction is that there are only 4 million coins that could be possibly mined out of the 21 million.
The Prediction Explained
The source making this prediction has, by simple number crunching, come up with this line. According to this assessment, there are two or three factors. One is the time being consumed in mining one Bitcoin.
It is true that the average time taken to mine a Bitcoin now is much longer than it used to be, and when the universe of available stock itself is low, it would result in the task taking longer.
Applying this yardstick, it is projected that the last Bitcoin would end up being mined a hundred years from now, by the year 2140.
Therefore, the argument is, the fewer the availability of the currency, the higher its demand and the more buyers will be ready to pay. It is also pointed out that the current stock of 17 million Bitcoins has come about in a period of nine years.
Prices Keep Fluctuating Wildly
But the unpredictable part of BTC pricing has been its undoing in many ways. No one had anticipated that it would gain so much in such a short period and touch figures like $18,000 to $20,000, nor the way it dropped back to $6,000 again within a brief interval.
Some have attributed the sudden fall to the offloading of a large quantity of Bitcoins out of the Mt. Gox cryptocurrency wallets by the court-appointed trustee.
But that is neither here nor there. Even if one were to accept that explanation by extending the same logic, the current prediction that fewer Bitcoins in circulation would mean an increase in prices.
But the average investor in Bitcoin may not be so well-informed to understand these finer details. They may go by a word-of-mouth recommendation or be simply driven by greed. In either case, the room for patience and calculated decision-making may not be available to them.
The above calculations clearly convey that those who can afford should just hold on to their investment in Bitcoin and be sure that the prices will increase, possibly shoot up sharply.
Long-Term Prospects Still Uncertain
Not with standing all these, the fundamental question on everyone’s mind would be if Bitcoin as a currency will stay on and be a stable asset.
There are some who predict the cryptocurrency will replace gold and reach $700,000 from around $10,000 now. But many question this notion, saying it may be a far-fetched assumption, not entirely constructed on reliable data.
Whatever the final outcome, BTC prices will remain a matter for discussion and debate continuing into the following months, and perhaps even years.