As of August 2017, the Bitcoin price is going up like crazy. When will it crash again?
Bitcoin won’t crash, its here to stay. Of course Bitcoin involves risk, however its current reward opportunity attract more and more novice investors. Like everything else, Bitcoin prices are also driven by supply and demand. When there is too much Bitcoin demand, while Bitcoin supply is limited, the price of Bitcoin will ultimately rise. Indeed, this was the reasoning in the first part of our 2017 Bitcoin Price forecast.Why Bitcoin Price keeps on increasing? Simple reasons:
• Why Bitcoin price rise?
Reason 1: There are limits on how many bitcoins can ever exist. Meanwhile, there are more and more people trying to get some Bitcoins. Economics 101: Constant supply + increasing demand = higher prices• Why Bitcoin price rise?
Reason 2: Mining Bitcoin becomes harder and harder, less new supply in the market• Why Bitcoin price rise?
Reason 3: It is the only payment solution without a third party involved. As the world becomes more and more tracked and traced, more people look into privacy. Especially, financial privacy. Most important part is that, there are more and more countries where bitcoin is legal.
First and foremost of all, like Gold, Bitcoin price is due to its scarcity. There is not an unlimited supply of it. Hence, when a person like Bill Gates or Richard Brandson comments that they believe in Bitcoin, of course their followers start looking into it and trying to buy whatever they can.
Will Bitcoin Crash?Will bitcoin crash and disappear? I’d say most probably not! Is Bitcoin a bubble? At the moment, yes!However, there are more and more new technology adoptions and even more Venture Capitals as well as Hedge Funds backing Bitcoin, which is pushing the Bitcoin Price higher and higher. There is just limited number of Bitcoins available. When Bitcoin Mining will come to its end, that is the time Bitcoin Price will start flying high!But keep in mind that nobody can seriously predict the timing of a crash, neither equity markets nor crypto currencies.