“Why is Bitcoin going up in price?” is now the most asked question I get. It has officially replaced “How do I find no-money-down property deals?”
I first explained how to get into Bitcoin and other Cryptocurrencies back in 2015.
Crikey, it was cheap back then – we just didn’t know it at the time. To be fair we all thought it was quite expensive.
We can’t look into the future but we can look into the past. And looking back, Bitcoin had been cheaper – a lot cheaper. That’s why we all thought it was expensive in 2015. It’s all relative. At the start of 2017 a single Bitcoin was priced at £500, historically speaking, yes that was expensive. But by July it was up to £2,000.
And guess what, at £2,000 we all thought that was expensive.
In July I made sure that all my readers knew I was buying the three main cryptos and 7 alternative Cryptos as well. Quite a few of them wrote to me to say that at £2,000 they thought they had missed the boat with Bitcoin. At the time Ethereum was £200 and Litecoin was £20.
Had they missed the boat?
Well it turned out they hadn’t – today Bitcoin is over £7,000, Ethereum is over £350 and Litecoin is over £60.
My Bitcoin tripled in value in that 4 months alone!
So why is Bitcoin going up in price?
There are two obvious questions. I’m sure you’re screaming them at your computer right now.
First of all why is Bitcoin going up in price? Secondly will this bubble pop or will the price keep going up?
The answer to the first question is really very simple. Bitcoin is in very limited supply. We all know that only 21 million coins will ever exist and the closer we get to that number the harder it is to ‘mine’ them. So there is no doubt the “supply” is very much on the short side. So next we need to look at the “demand” side of the equation. As I write Coinbase (one of the popular sites where you can buy Bitcoin) is opening 50,000 new accounts every day! Yes you read that correctly. And that’s only on one platform amongst many.
So demand is clearly going through the roof. Imagine if every one of those new customers only put a few hundred pounds in Bitcoin?
You get the picture.
Is it a bubble Hell yeah. When demand exceeds supply the price rockets which is exactly why house prices in hot areas are so expensive. There’s no difference.
Why is Bitcoin going up in price – and will it keep going up?
Okay, so we know the answer to why is Bitcoin going up in price. But more importantly we need to know will Bitcoin keep going up in price? You may as well ask what are the winning numbers for the lottery this weekend.
No one knows.
What we do know is what it has done in the past. If you open an account with Coinbase (here is the link so you get some free coins as well: https://www.coinbase.com/join/5956566984d28909992cae6c) you can look at the price charts for daily, monthly, yearly and since the very beginning.
What you will see is, yes it’s a volatile price that’s for sure, but one that just keeps hitting higher and higher numbers. Regrettably the dips are so few and far between we don’t get many chances to grab ourselves a bargain.
In 2017 it’s clear that the longer you waited to buy Bitcoin the more profits you missed out on. My short term target for Bitcoin is £10,000. So there’s still 30% to be had – and that’s just in the short term. My argument last year was if Bitcoin can go from £50 to £500 it can go equally go from £500 to £5,000. I believe that if it can go to £5,000 there’s no reason why it can’t go to £50,000. The demand/supply argument has not changed.
So £50,000 is my medium term target.
That makes Bitcoin, currently at £7,000, very cheap. Is that a bold claim? Only time will judge this blog, meanwhile, I’m still buying. If you are reading this any later than November 2017 I would love to know what price Bitcoin is for you right now.
And do you know the strangest thing of all. If the price crashes I will not see that as a bad thing. I will see it as a great way of getting more Bitcoins at a lower price.
Read more on the Barry Tyler website.