Bitcoin has the potential to reach $100,000 by February 2021 if it keeps following one of technology’s golden rules, according to a bitcoin investor and Harvard academic.
According to Dennis Porto, he believes that the bitcoin price could rise to $100,000 if it simply follows the Moore’s law.
First devised in 1965, Moore’s law refers to an observation made by Intel co-founder Gordon Moore. During this time, Moore noticed that the number of transistors per square inch on circuits had doubled each year since they were invented by German physicist and engineer Werner Jacobi. He developed and patented the first known integrated transistor amplifier in 1949.
According to Porto, this same idea can be applied to digital currencies such as bitcoin.
“Any technology that is growing exponentially (i.e., ‘following Moore’s law’) has a doubling time.”
Since bitcoin was introduced in 2009, its value has doubled every eight months, states Porto.
“This poses a unique opportunity for investors: Whereas it was difficult to invest in circuits or Internet speeds, it is easy to buy a bitcoin.”
Porto is of the opinion that the number one digital currency will continue to double until it has reached mass adoption. He predicts that by February 2021, bitcoin’s value could reach over $100,000.
Bitcoin’s Price Rises to $3,400, On the Way to $3,500?
At the moment bitcoin is experiencing a re-surge in its price, which has scaled above $3,400 for the first time. On the 5th August, the digital currency made it to $3,200, a significant step for bitcoin. Prior to the 5th, it hadn’t seen $3,000 figures since the 12th June, when it reached $3,041 for the first time.
As of today, the 8th August, the bitcoin price is trading at $3,446, according to CoinMarketCap.
Over a 24-hour period, the digital currency’s price has risen by 2.64 percent. The past seven days has seen an increase of 25.01 percent. Its market cap value is now worth more than $56.8 billion, pushing the total market cap value up to $121.8 billion.
Just yesterday, it was reported that the total cap value of the digital currency market was worth $117 billion as bitcoin climbed to $3,300.
The $121 billion market capitalisation is the highest reached so far. The lowest figure recorded was at $60 billion on the 16th July. It remains to be seen how much further the market will rise and where bitcoin’s price will head to. Could it soon reach $3,500? It looks set to reach this next milestone, but all we can do is wait and see.
Bitcoin Cash Remains Fourth, but Value Increases
Since the user activated hard fork on the 1st August, bitcoin cash has continued to experience fluctuating prices. With claims of limited support for the altcoin, its price was at $258 yesterday.
Now, though, the value of the digital currency has risen to $358, a 35.45 percent increase over the past 24 hours. In the past seven days its value has risen by 19.30 percent.
It’s believed that this increase in bitcoin cash’s value is due to the fact that it is now easier for miners to find blocks. Does this mean that the digital currency’s price will increase further? Who knows, but it has already made a significant increase over previous prices. This will no doubt return confidence to many holders who have not sold their airdropped coins just yet.
Ethereum Climbs toward $300
Second placed ethereum is steadily making its way back to $300. At the time of publishing, ether prices were trading at $288. Its market cap is now worth over $27 billion. In the last 24 hours, the digital currency has seen an increase of just under seven percent. Over the previous seven days, an increase of 30.74 percent has been recorded.
The last time the price of ether experienced a significant low was the 16th July when it recorded a price of $149. Its market cap value was then worth just under $14 billion. In less than a month, the digital currency has managed to claw its way back up to healthier highs.
Who knows, but the ethereum community may soon see new record prices in the not so distant future. Ethereum scaled the $400 mark back in June for the first time.
Digital Currencies Aren’t Real
What we are experiencing at the moment is a healthy and expanding market. One that is constantly surprising those involved. And one that doesn’t look set on going anywhere, anytime soon.
Despite, this, though there are some critics of the market.
Recently, Howard Marks, a billionaire investor, said that digital currencies such as bitcoin ‘aren’t real.’
The founder of Oaktree Capital Management said in a 22-page memo to clients that:
“People tell me these currencies are solid, because (a) they’re secure against hacking and counterfeiting and (b) the software used to generate them strictly limits the amount that can be created. But they’re not real.”
Not only that, but he states that digital currencies are ‘nothing but an unfounded fad or perhaps even a pyramid scheme.’
As examples, he compares them to the Tulip mania of 1637, the South Sea Bubble in 1720 and the Internet Bubble from 1999-2000.
According to a report from Morgan Stanley, bitcoin payments are shrinking among merchants. In 2016, bitcoin was accepted at five out of 500 top online merchants. However, in 2017, that figure had dropped to three.
The reason this is is down to the fact that people are more likely to hold on to their coins rather than spend them when its value goes up. This is not surprising, considering many people may simply consider it as an investment rather than a payment choice.
For those who may have jumped on the band wagon when its price was high may now be simply trying to make some profit from the currency if and when its price goes up. No doubt it will.
Last week it was reported that bitcoin could climb to $5,000. Making this prediction was Ronnie Moas, Standpoint Research founder. In a report, he states that bitcoin will reach $5,000, ethereum will double to $400 and litecoin will top $80. At present, litecoin is trading at just over $46.
Moas’ latest prediction follow on from his July comments when he said that bitcoin would reach $5,000 ‘in a few months.’
Featured image from Shutterstock.