Bobos & Wojaks

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10 Reasons Why Bitcoin Will Reach 100K

  1. Inflation

The coronavirus has caused countries to spend unprecedented amounts of fiscal stimulus over this past year as people have been out of work due to the pandemic. While this may be able to hold up the economy for a short time, people will turn to an asset with a fixed supply such as bitcoin out of fear for negative inflationary effects on global currencies.

 

  1. Digital Gold 

Bitcoin has been referred to as “digital gold” since in the past it has been used to store value rather than actually being used as an everyday payment method. Today, Bitcoins total market cap sits at around 500 billion while gold’s market cap is somewhere from 9 to 11 trillion, suggesting that there is plenty of upside left for Bitcoin.

 

  1. Institutional Backing 

Square recently purchased 50 million dollars worth of bitcoin. As other big companies join them in making large purchases, the legitimacy of bitcoin increases over time.

 

  1. Shift to Online Currency

Coronavirus has caused a shift for nearly everything in the world to have a greater online presence and we may one day soon see the first cashless society. Sweden recently announced that they will begin exploring the feasibility of having the world’s first central bank digital currency, the review of the “e-krona” will be conducted from now until November of 2022.

 

  1. Paypal Cryptocurrency Service-

PayPal users are now able to buy, hold, and sell digital currencies using their PayPal accounts. Bitcoin being 1 of only 4 cryptocurrencies that will initially be offered as the company aims to expand the service to Venmo in the first half of 2021.

 

  1. Bitcoin’s Fixed Supply

The comparisons between bitcoin and gold continue on, just like how there is a finite supply of gold which must be mined, Bitcoin has a limit of 21 million total bitcoins written into its code and each bitcoin must be electronically mined. Today, over 18 million bitcoins have been mined and it is projected to take over another 100 years before the last bitcoin will be mined.

 

  1. First Movers Advantage

Bitcoin has been able to capitalize on the successful use of blockchain technology and separate as the clear leader of all cryptocurrencies. Today, they maintain an over 70% market share for all cryptocurrencies leading their next closest competitor, Ethereum, by over 400 billion dollars in market cap.

 

  1. Bitcoin Mining Halving Event- Every 4 years the amount of bitcoins released into circulation is halved to provide a deflationary aspect. This occurred in the beginning of 2020 which analysts believe could be a big reason as to why we have seen and will continue to see a rise in the asset price. The next halving event will not occur until 2024.

 

  1. Change In Investor Mindset- There is a big difference between the initial crypto rally in 2017 and the rally that we are experiencing today. The popularity of bitcoin for investors who want to hold long term rather than trade and sell quickly has greatly increased. This will provide more sustainable and stable growth overtime.