Bitcoin has outperformed all other asset classes and investments possible, with cumulative annual growth of around 500%. Although the currency is fluctuating between $3,000 to almost $5,000 per coin in the last several weeks, it is undeniable that bitcoin has grown to tremendous values and the trend is expected to continue.
With these statistics in mind, it is no wonder that some analysts and investors are raising the question of whether bitcoin can hit $10,000 per coin in the future.
According to Forbes Magazine, there are several drivers that can boost the price level of bitcoin to this new high in a short amount of time.
Liquidity
Bitcoin is highly tradeable asset, with very high daily volume and a strong order book. It can also be converted into other currencies within seconds.
Accessibility
As of August this year, Bitcoin is one of the most accessible investments to make, with CoinMarketCap listing over 75 exchanges and with over 1,400 Bitcoin ATMs, represent a 100% annual growth in circulation, according to Forbes.
Technology
As opposed to fiat money, Bitcoin’s underlying building block, blockchain, presents a ground-braking opportunity for traders and engineers to improve on the blocks using cryptography. With quantum computing coming into play, bitcoin may see further technological disruption.
Utility
The fungibility of Bitcoin means that it can be used like a regular currency, one can buy and sell goods and the value is the same as fiat money.
Investment in Bitcoin
Huge investments are made into Bitcoin, with some big names behind them such as: Mark Cuban, Bill Miller and the Winklevoss twins have all invested in Bitcoin and cryptocurrency products, as reported by Arthur Iinuma from Forbes Magazine.