Bitcoin prices moved above $16,000 in a convincing manner after the CBOE launched the first BTC futures contract at 23:00 GMT last Sunday. Also Google, the world’s most widely utilized search engine, has revealed that bitcoin has been the second most popular keyword on its platform throughout 2017.
Bitcoin price: $20k per coin!
While the recent surge in the price of BTC can be attributed to a variety of factors, the two driving factors of the rise in price have likely been the global finance market’s anticipation of CME’s scheduled listing of bitcoin futures on December and the strong performance of alternative cryptocurrencies. Many have noticed that markets reacted to rising prices with a snowball effect, triggering mass consumer interest in both buying and trading the virtual currency. Over the last few days, the Coinbase app has been at the top of Apple’s “most downloaded apps” several times. The Binance exchange also survived the siege, but as usual it survived without a problem.
It is worth mentioning that other cryptocurrencies followed bitcoin’s lead. Cardano, a cryptocurrency and smart platform for financial contracts, clocked the highest gains, increasing by more than 26% to $0.26. Also Ripple, which surged by more than 250% in the last week, is down by approximately 1%. The overall market capitalization of cryptocurrencies was $555.3 billion, up from $537 billion at 15:35 UTC yesterday.
What will happen?
Bitcoin would rise, experts are now focusing on the forthcoming year and how governments will react to the rapid growth of cryptocurrencies. Bankers, mainstream media and pundits continue to call BTC a bubble, even as the bull marches on. Of course many bitcoin traders are unlikely to take these warnings seriously because mainstream experts have described BTC as overvalued for years—only to see the currency rise to even greater heights. Some investors believe the CME bitcoin futures could attract more institutional demand because the final settlement price is culled from multiple exchanges. Also prices might continue to rise is that Bitcoin will be useful as a medium of exchange for a growing number of people. So as Forbes say if everyone decided to behave collectively delusionally and replace dollars with Bitcoins, this would mean BTC needs to rise to $13.7 trillion in market cap up from around $300 billion. So prices would have to grow to 4,600% from current levels.
BTC created new millionaires
According to a Forbes report, there are nearly 15 million millionaires globally, with more than 5 million located in the US and Canada. CCN reported that billionaire investor and hedge fund legend Mike Novogratz has predicted the price of BTC to easily surpass the $40,000 mark by the end of 2018, in the short-term. Some experts noted that if a small portion of the assets of millionaires globally is invested into bitcoin in the upcoming weeks, the price of bitcoin “would be justifiably be around $60,000.” The adoption of bitcoin as a store of value and a medium of exchange within the global finance market is increasing exponentially, $60,000 remains as a viable mid-term price target. To get to these levels would completely undermine it’s usefulness as s currency.
Now Bitcoin developers have new ideas for relieving these bottlenecks—most notably, a new payment network called Lightning that operates as a layer on top of the BTC blockchain. It could dramatically expand the bitcoin network’s throughput, but the technology is still in the early stages of development.
Remember not to keep your money in the Exchange Service and not invest all your savings!