What will be the future and present of bitcoin.
Big investors make price models for assets but the trouble is they keep this information secret.
Bitcoin will go high or low? How high will Bitcoin go if it does? These are all questions for speculators.
Bitcoin is so Volatile these days.Could there be a 50,000, 100,000 or million dollar Bitcoin?
Satoshi price goes up, as Bitcoin’s price has gone up, it's more a reflection not of usage but of optimism about Bitcoin's future use. So, if you see Bitcoin coming in and maybe taking over Amazon's $38 billion worth of transactions, well, then you're pretty bullish on Bitcoin. You'll see the price going up. But what really happens is people are reading the news each day. They see new regulations and they get this sort of uncertainty about the future.
so you don't want the price flying over the place if you're going to put money in there to sort of hold it for a while. You want that to kind of be solid. You want that to be something you can rely on. And even with the transactions volatility, though some people say it has no effect at all, really does have that effect. So, someone's got to eat the cost of these volatility issues. And lot of times you will see someone like Coinbase or BitPay trying to eat the volatility cost to provide sort of a stable payment service. And indeed, they've been doing that pretty well. And so volatility in turn limits Bitcoin’s use today as medium of exchange and store of value.
So, the more volatility there is more unlikely people are going to be comfortable using it or maybe storing value with Bitcoin. Okay. And so when people are concerned about this idea of volatility of prices going up and down what we're really seeing is that the price is floating. And for many Americans, this whole idea of a currency’s price floating is kind of new idea. But if you are living in Europe, especially in '90s or before, you are very used to this idea of currencies floating because if you went from Italy and just crossed border into Switzerland immediately you would be changing money for the Swiss franc and you would be looking up immediately the current exchange price and every few minutes that price might change. For certainly over week or so, you'll see those prices moving and sometimes you'll see those prices moving a lot. So, even the dollar versus the euro over the last 10 years has been fairly volatile. So, it's hard to say whether the euro is volatile and floating a lot or the dollar is volatile or if it's just a combination of the two. But indeed they float. Now Bitcoin is unlike the dollar or the euro because there's no central bank trying to control the volatility of Bitcoins. So, it could be argued that it floats even more than other currencies. Okay.So $50,000, $60,000, $80,000 really seems like a possibility. It's not happening this year. There's no way that Bitcoin with its current volatility is going to take over Gold's position as a store of value or even 10% of it this year. But as we look into the future and these ideas of volatility might come to settle, well, this is something that could happen.
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