With bitcoin prices apparently on the rise again speculation continues around just how high the value of this cryptocurrency could eventually reach. Estimates vary widely but it is clear that the majority of people believe that the cryptocurrency will continue to be a powerful investment in the mid to long term.
For instance, the results of a CNBC survey showed that almost half of the people questioned believe that it could get up to $10,000 (£7,590) or more at some point. 16% of the respondents to this survey said that they think that bitcoin will reach somewhere between $6,000 (£4,550) and $8,000 ($6,070).
More than 23,000 people were asked for their opinion on future bitcoin price trends for this piece of research. Around a third of them were more pessimistic and shared the views of JPMorgan Chase CEO Jamie Dimon, who recently admitted in an interview that “I don’t personally understand the value of something that has no actual value”.
A rise of over 470% this year has seen the value of this digital currency reach close to $6,000 at its highest point. It has settled between $5,500 and $5,700 in recent days, with some investors believing that it will enjoy another rapid rise once it gets past this resistance point.
The spectacular price rise to date has been attributed to varying reasons, such as the growing appeal that bitcoin holds for investors and the introduction of new regulations in some countries. With Japan already introducing laws and major countries such as South Korea and Russia currently looking into a possible regulatory framework there is no doubt that the future looks positive on a global scale.
Is Bitcoin the New Gold?
Among the differing opinions around this subject, there are some analysts who suggest that bitcoin will replace gold as the standard measure of value, although others dispute this possibility. Traditional investment firms such as Goldman Sachs claim that bitcoin is not the new gold, while a variety of other investors and analysts see no reason why this can’t be the case.
Among the most optimistic claims for the future of bitcoin prices are those of financial adviser Tom Lee. He claimed that if it captures 5% of the gold market then each bitcoin unit could be valued at a minimum of $25,000 (almost £19,000).
Mr Lee suggested that the growing number of cryptocurrencies helps the price of bitcoin rise, as this means that “more as using bitcoin as their master ledger”. It is worth pointing that despite all of the new cryptocurrencies that have appeared, bitcoin still retains around half of the overall market share in this type of currency trading.
High profile cryptocurrency investor Mike Novogratz has suggested that the price could be at $6,000 as early as the middle of next year. Meanwhile, others believe that bitcoin could reach this landmark figure before 2017 is out.
As with any type of investment, there will always be differing opinions on what the future holds. However, what does seem clear is that this cryptocurrency is in for an exciting future with plenty of twists and turns still to come.