Bitcoin Price Surge
Even the most bearish on Bitcoin (BTC) must have known that it would make some manner of recovery.
Following its devastating fall in 2018, Bitcoin is beginning to mount a comeback, more than doubling its value since its lowest point in late 2018. But just how high can the Bitcoin price climb? To some, that number is $50,000.
Some traders believe that the cryptocurrency can soar to this new all-time high, and are betting a lot of money on it in certain corners of the Internet. (Source: “Could Bitcoin Hit $50,000? In Wild World of Crypto Options, Some Say Yes,” The Wall Street Journal, June 3, 2019.)
So, does this line of thinking hold water? Can Bitcoin hit $50,000? The answer is “yes,” but with a substantial caveat.
The ceiling on the BTC price is practically limitless. Cryptocurrency prices could skyrocket at any time, motivated by any number of things.
It’s possible that acceptance by institutional investors and adoption by countries as a secondary currency (see several broken economies around the world turning to Bitcoin to supplement their own troubled currencies), would both help juice the Bitcoin price.
But possible is not probable, and while there is truly limitless potential in Bitcoin, it is anything but a safe bet.
The reason the BTC price collapsed so spectacularly before was because it is so speculative. Cryptocurrencies are tied to nothing but faith and, as a result, they offer no guarantees for investors.
The price could skyrocket and collapse within one day, and it’s hard to predict which way the wind is blowing. So for investors looking for a high-risk, high-reward scenario, Bitcoin fits the bill. Everyone else might want stay away.
But beyond that, for investors looking to make short-term trades in order to see big gains in little time, Bitcoin is a fair option.
A well-timed Bitcoin investment could see huge returns. After all, the volatility means that prices could jump at a moment’s notice, with this year already seeing the cryptocurrency’s price more than double.
Again, the problem comes in predicting the trend.
As for a $50,000 Bitcoin price, that is possible in the future, but way in the future. We’re talking years, and I believe that there will be many dips and surges along the way.
Not to mention that a total Bitcoin collapse is not impossible, meaning that trying to play the long game is risky indeed.
Regardless, the BTC price will likely hit $10,000 again within the year. So for traders who are looking to make a quick in-and-out investment, this could be a good time to lock in solid gains before the next market upset hits.
Bitcoin’s problem has never been its potential—it has that in spades—but rather its sustainability.
BTC is one of the most volatile trades you can make on the market. If an investor is okay with putting it all on the line, the cryptocurrency offers the chance to make a lot of money. But for an investor looking for a retirement nest egg, it’s probably wise to steer clear.