Bitcoin price has surpassed the critical psychological barrier of $ 10,000 on February 9 – the highest point since October last year.
But for many people, $ 10,000 is just the beginning of Bitcoin's huge growth. Anthony Pompliano – co-founder and partner at Morgan Creek Digital, believe BTC price could reach $ 100,000 by the end of 2021 thanks to limited supply and increased demand:
“Bitcoin has not only reached $ 10,000. I still believe it will reach the $ 100,000 mark by the end of December 2021. Fixed supply, increasing demand. Time will answer.”
This is an important news for Bitcoin holders like comment previously on cryptocurrency analyst Willy Woo's Twitter:
“This breakthrough is genuine. Basic investment is backing this $ 10k breakout. ”
Arthur Hayes – Co-Founder & CEO of BitMEX, also holds an optimistic view on future Bitcoin prices. He comment on Twitter:
“Nothing can stop me, I go above all! Slow and steady will be the winner. Take the stairs up to $ 20k #bitcoin. ”
The nature of Bitcoin's fixed supply and increasing demand
Bitcoin has many important attributes that determine its success. It is a monetary deflationary policy; firm and predictable maximum total supply. In many ways, BTC can be compared to gold, as Bitcoin is mined through digital means and also has a limited supply.
The total number of Bitcoin's minable coins is only 21 million. About 18 million BTC were mined. Bitcoin halving will take place in May this year – an event that sees the supply halve at about 1.7% per year.
Since 2010, Bitcoin has shown high price volatility, creating a debate regarding the underlying reasons leading to demand economic agents. In the short term, most public view Bitcoin as an asset to speculation. Bitcoin price also surged when the trade war between the US and China broke out early last year.
Many people have turned their stocks, currencies, and assets into Bitcoin in search of a safe haven. In the long run, demand for Bitcoin can be driven to get closer to future expectations as a means of exchange.
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According to CoinTelegraph
Translated by ToiYeuBitcoin