Interesting question.Especially because “his old level” is a rather broad spectrum, since the Bitcoin at the very first transaction had a value of 0.1 cents and was bought at the peak of the Bitcoin-Gekte end 2017 for more than 16,000 euros. The real gear was in 2017, but also in the years before there were significant fluctuations in the course.
I don’t own a glass bulb to look into the future.But my answer to the question of whether Bitcoin will reach the peak of end 2017 again is: Yes. I think that will be the case in a year or 20.
The three main reasons I think that are:
- The number of Bitcoins is limited and cannot be extended
- Bitcoins can be traded relatively easily and without intermediary
- The possession of Bitcoins cannot be controlled by a government
A value of 16,000 euros is not the same in twenty years as 16,000 euro now. Price inflation will allow you to buy less.
This is the first reason to expect that Bitcoin will hit the top of 2017 ever again.The bitcoin is not in the normal exchange rate system, such as the price of dollar and euro among themselves. Bitcoins cannot be added. At a certain moment the stock bitcoins are on, they are all “mined”. This means that there is a finite number, which will increase the price at a certain point if the demand gets higher. That combined with euro inflation will lead to a higher rate in euros.
And why do I think the demand for Bitcoins will increase?Because the idea behind the bitcoin is good. A currency that is not dependent on the government of a country has potentially a huge security value.
The currency cannot be devaluing because the government is making a mess in the country (think of Venezuela at the moment).Therefore, it is very appealing for people to not keep part of the savings in the national currency. Gold is also such an alternative, but that again has the disadvantage that you have to physically store it somewhere and it is not very practical to go shopping with a few grams of gold (let alone buy something online). With a Bitcoin this can be, so it is directly to spend, whereby you are always dependent on a broker with gold. Like gold, Bitcoin is actually worth nothing. Gold is too soft to do useful things with it. It is beautiful (we find) but, say well itself, aluminum foil is also beautiful. Gold only has a high value because people accept it as a means of exchange.
Also, with Bitcoin, you can still buy and sell reasonably out of sight of the government.The government will never be able to directly obtain information about how much bitcoin someone has, as they now have information from banks every year about the balance of your bank account (in the Netherlands at least). If I understand correctly, you can search for transactions in the blockchain, but you don’t know who manages which portfolios.
This anonymity advantage is often thought of as a crime, and that this is just a disadvantage. However, if you read this, you probably live in the Netherlands or Belgium where we have a pleasantly organized government that is good with its citizens.
Not all Governments of all countries are so good with their citizens.You don’t necessarily have to be criminal to want to do something that is not allowed by the Government of your country. It can be very nice to be able to spend money freely. I think it will also give people in less well-organised countries more power, and hopefully this will also reduce the power of the incapable governments.
The price of bitcoin has risen so enormously in 2017 because thanks to fantastic beautiful online fairs through Daytrading, huge profits were achieved, with relatively little effort and knowledge of things.It is completely unrelated to the original idea behind Bitcoin, and unfortunately it was no longer usable as a swap because someone who bought a pair of shoes for a week later was disappointed because at that time for the same number of Bitcoin ten Pair of shoes could have been buying.
It has made Bitcoin very well known, and that is another advantage.