Could the price of Bitcoin be about to soar again?
by Manoj Sharma for CNR
The top-ranked cryptocurrency, Bitcoin, could yet set a new all-time high in early 2019, or even before the end of 2018. Currently, Bitcoin is hovering between $6000 and $7000, with its highest third quarter price of $8400 set in July this year. That follows its peak of nearly $20,000 at the end of last year.
BTC critics often blame its volatility and point out its sharp price declines. It’s hard to argue that, but also, there’s an argument that it missed the bigger picture of how Bitcoin behaves over time.
Since its inception, Bitcoin has often experienced massive price declines. However, it has always ended each fall at a value significantly higher than its price level at the onset of the preceding price rally. The exhibition of constant parabolic gains by Bitcoin makes it a logarithmic asset.
Here is a screenshot taken from Coinmarketcap:
The graph shows that Bitcoin’s value has constantly grown on a yearly basis. It has maintained a healthy variance despite a price crash.
Earlier this year, Clem Hadrian Chambers, a British entrepreneur and the founder of ADVN, likened the logarithmic growth of Bitcoin to that of the investment portfolio of Warren Buffet. He predicted that BTC value could go from $20,000 into the realms of predictions made by Draper and McAfee, who have suggested a future Bitcoin price ranging from $250,000 to $1 million.
Going by history, BTC began the year under $1,000 and rose to nearly $20,000 last year. After a 60 percent decline this year, Bitcoin has remained somewhat stable in the mid-$6,000 region. All eyes now are on how the last quarter of the year pans out. It might just be that the bulls are coming…