Bitcoin is a polarizing issue where people believe that it will do wonders till the sky, or they believe that it is just a gimmick. While it is safe to say that Bitcoin will do better in the future as it has done in the past, some people make an overoptimistic claim that the apex crypto will touch the million-dollar mark in the next few years.
So, what’s the truth? Is Bitcoin potent enough to be a million-dollar bet, or is it just a statement to lure investors into keeping the market rolling? Let’s find out:
Bitcoin Market Price History for the Last 24 Months
If you’re reading, it is a great possibility that you might have witnessed the dream run Bitcoin had in the second half of 2017. From around $2,500 on July 1, 2019, the apex crypto rallied to its all-time high of $19,497 on December 16 of the same year. There were claims from various sections of the industry that a million-dollar mark is the next target, and everyone went gaga over it. However, the story for almost 14 months was extremely disturbing, as Bitcoin nosedived to a devastating $3,500, after losing for six consecutive months.
During this period, people lost significant wealth, and many crypto companies related to Bitcoin trading had to shut down. These 14 months is considered as one of the darkest bearish markets since of all time. The crypto industry was showered with heavy criticism, from within and outside the industry. Industry stalwarts like Warren Buffett mentioned Bitcoin as “rat poison,” while several other popular names in the financial investment fraternity made similar remarks.
Things, though, started to improve from February earlier this year and improved to reach a yearly high of $12,500+ in mid-August. This was the time when Bitcoin bull proponents kept hitting on the critics, and the claims that Bitcoin would reach $1 million resurfaced. Like before, this semi-bull rally was also short-lived, as Bitcoin kept losing in the second half of August entirely for the following today. As of date, BTC is priced at below $7,500, more than $5,000 less than what it was just two months ago.
Fancy Statements by Bitcoin Advocates and Stakeholders
When Bitcoin started to decline in early 2018, it was believed that it was just a price correction. All the top brass of the industry kept blaming the decline to several factors, and that the price would recover soon, which didn’t happen. And now, when the industry is declining, we already hear that it is a price correction. Mike Novogratz, chief of Galaxy Digital, had made a statement in June that Bitcoin will stabilize between $10,000–$14,000, but that didn’t happen. Binance Chief Changpeng Zhao took a dig at those who sold Bitcoin during the bears of last year, stating that they should slap themselves.
Crypto proponents like Max Keiser of Heisenberg Capital and computer scientist John McAfee keep talking about the million-dollar mark. McAfee’s comments on crypto are valuable, but after he launched McAfee DEX, it is apparent that he, too, has vested interest in the crypto industry.
Eventually, Will it Happen?
If you haven’t already guessed it, Bitcoin will not reach the million-dollar mark, at least for the next few years. At the current price, Bitcoin needs to grow by 13333%, or 134 times to reach $1 million. And considering the current global economic situation, that seems ultra-optimistic.
The problem with Bitcoin is that people, mostly the new investors, always have unrealistic expectations from it. These people need to understand that Bitcoin, at the most, can be a stable store of value, and not an investment asset, which will take everyone rags to riches. If that becomes a common understanding, let’s see Bitcoin as a potential substitute for the dominant global currency, that is, the US Dollar.
Several industry experts have regularly stated that Bitcoin can be the original store of value, while other cryptocurrencies will be for use. Citing the example of gold and other metals, Novogratz himself had stated that Bitcoin is for value and others for usability, and that’s the bottom line.