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$ 1 Million BTC is that really that crazy?
If anyone told you sometime around 2010 when Bitcoin was still pennies to the dollar per Bitcoin that it will hover around $9,000 per Bitcoin nine years later, you won’t believe it would you?
In this guest post from Christopher Hamman we will learn about why the most interesting time for Bitcoin is ahead of us, why $ 1 Million BTC might not be so crazy that we think.
The portrayal of the Road to $ 1 Million BTC
An Interesting Comparison
If you had bought Google (now Alphabet Inc.) at $214.32 on 13th July 2009 and held it till the 18th of July, 2019, $1,149.26 you would have had a 436.23% increase in value.
Bitcoins, on the other hand, offer something more interesting!
Between 2009 and 2012, Bitcoin was more or less at $0.06 per Bitcoin.
Bitcoin is now $9,746.03 on the data presented in the example above (find latest price on Bitcoin)
This gave returns of 974,597%!
Would you have invested in something that you didn’t fully understand it but knew somehow it will change World?
Bitcoin went on to reach $20,000 in December 2017 before peaking out because there were too many speculators in the market at the time.
Before it hit the $20,000 something interesting happened again.
Bitcoin is About to Blow Up
If you have studied Bitcoin’s price movements of recent, you’d see that Bitcoin is currently ranging in terms of price. This is what securities traders call the “quiet before the storm”.
It is that quiet moment when no one really knows if it is going to happen or not. Or when it might kick-off.
$13,775.24, on June 26, 2019, was the highest point in which the cryptocurrency tested and went down after everyone went after it: Mark Zuckerberg and Libra, Donald Trump, the American Federal Reserves….Everyone!
Now, a double bottom is forming and we shall take a look at the same chart pattern which blew Bitcoin up back in 2017.
Just Before Bitcoin Blew Up
The same thing happened between October 12th, 2017 when Bitcoin was $4,824.48 and November 12th, 2017 when the cryptocurrency was at $5,836.41 forming a double bottom to rally to the $20,000 mark before flattening into crypto-winter.
We are seeing live in real-time a repeat of that same scenario. A new market rally is already in the works!
About the Last Market Rally
So, we know a few things about the last rally to $20,000. Firstly, the market hadn’t matured this way. Prices are responding just like normal securities do! Bitcoin has become like your regular stock.
Secondly, there are fewer speculators than there were in the market place. Institutional demand is driving this market rally.
Thirdly, that market rally was overheating. There were too many price increases without the equilibrium of price reversals. As such, the whole price action had to reverse itself to flatline again.
As you have already seen from the comparison between GOOGL and BTC price over ten years, BTC has a whole lot of volatility as compared with GOOGL. And when the volatility begins to play out, then we shall have higher prices as we have seen before. Is still $ 1 Million BTC nothing more than a crazy idea?
The New Market Rally – to $ 1 million BTC
The new Bitcoin market rally holds a lot of promise and is going to be one heck of a ride! We know that the market is moving differently but in similar patterns.
Bitcoin’s fundamentals are becoming stronger. Adoption is on the rise. Understanding of use case scenarios for Bitcoin is beginning to play out. There are new bullies on the Crypto block.
We are also expecting Bitcoin’s block halving to occur faster than expected (maybe even next year). Governments are undecided on Bitcoin’s use (and they shall remain so!).
Blockchain technology is going mainstream. And everyone is hearing of this new shiny toy called Bitcoin. This means something: a new parabolic phase is also in the offing.
Wait, What is a Parabolic Phase?
A parabolic phase is a period where a security moves rapidly in one direction. It can go either up or down. It’s that simple.
Now, Bitcoin is about to move up in a very big way. We may see $50,000 (or close to it) per Bitcoin before the end of the year or something similar.
If one can factor in the price ratio by which Bitcoin moved in its last price rally (1:4) you will notice that a similar phase is occurring just like last time.
When you take into account what’s happening now, then we can talk about the next few years.
A Series of Parabolic Phases in the Upward Direction
Bitcoin is going to start taking off mid-2020 after halving.
This is because the value derived from scarcity is what is going to make Bitcoins to become much more valuable than before, making $1 million BTC a very real thing.
If you study the events that are currently making governments go crazy about Bitcoin, you’d see that Bitcoin is something to watch out for as a phenomenon.
That alone should drive demand. But it wouldn’t.
The opposition to Bitcoin by the Wizards or the Financial Universe will be what will tip the scales and make people wonder why they weren’t using Bitcoins in the first place (get started with Bitcoin).
That’s when adoption will reach critical mass.
Then Bitcoin will explode and star entering the $100,000 mark and beyond. This is when things are going to get exciting! Are we getting closer to 1 million BTC?
Technology Adoption Rates Are on the Rise
Michael Cox and Richard Alm in 2008 defined the relationship between faster consumption rates and technology adoption rates.
We shall see an explosion in that in the next decade. If you notice, technology adoption rates are becoming faster than usual.
We are already entering the phase where market cycles for new technologies are being adopted faster than in the previous century. Adoption of blockchain technologies is even faster than internet adoption!
This then means that once blockchain technologies go mainstream (which will happen in a couple of months), Bitcoin shall become more prominent!
Mass Entrants into Blockchain Technology
Blockchain technology is going to be the single most important disruptive technology of the next decade. People are going to start coming up with more innovations than thought possible. This is when we shall start seeing Bitcoin reach the $1 Million mark.
Then like any other asset which is so precious that anyone who has a single piece is a high net worth individual instantly, Bitcoin shall become one of the most precious assets on the Planet.
This is the road to the $ 1 Million BTC.
You can get started with Bitcoin easily – recommended places to buy Bitcoin at:
- Coinbase (super easy to get started) – get $10 free when signing up via this link at buying for minimum $100
- Binance (great selection of cryptos and trading volume)
- Kucoin (quickest to add new exciting cryptos)
Other articles we recommend
- What is a crypto market cap – All you need to know!
- The best way to investing in cryptocurrency
- The top 8 crypto exchanges in 2019
- 7 most popular privacy coins
Christopher is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy. You can connect with him on LinkedIn.
Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor and trader of Bitcoin and other cryptocurrencies. I caught the attention of Bitcoin like many other several years ago, but it was first around 2016/2017 that I truly got into cryptocurrencies and blockchain technology.
I have since traded, bought, researched and learnt about this new emerging space to the fullest. When not producing crypto-content I create and design new products and businesses. And I want to combine my business experience with my passion to create meaningful content for all our readers.
And I am bringing this vision to my writing and how Go CryptoWise work.
Connect with me on LinkedIn. Ask me anything on here.
Get in touch with me to find out more about Go CryptoWise and what we care about.