Why Bitcoins Price Could Go Much Higher
This is pure speculation. Don’t trade off of my opinion. Its a quick thought.
When thinking about the “bitcoin bubble” that so many are wanting to call I was theorizing at what price might you say: “This is a bubble”. Throughout history there have been countless bubbles: real estate, tech stocks, beanie babies. The thing about all of these bubbles is that they were fairly localized. Meaning these were bubbles that had high barriers to entry. Someone in India would have a hard time speculating on San Francisco real estate prices. A guy with $10 in Uruguay probably couldn’t open a brokerage account and buy internet stocks.
But, here is the thing:
All people, virtually anywhere can buy Bitcoin. If you have access to an internet connection, you can get in. Heck, with Bitcoin ATM’s maybe you don’t even need that. Governments globally are talking about how to handle Bitcoin and cryptocurrency. I can’t recall of a time when every government in the world was talking about bond or stock prices.
I think this is the first time in history that the entire world can all speculate on the exact same asset. Currently, there is very little barrier to entry. There are no storage fees, minimum purchase levels or geographic restrictions.
When you start to think about that it becomes difficult to process. You can argue that the current price is in “bubble” territory. That does not mean the price can’t continue to rise.
Who knows, maybe this is just the start. The point is I don’t think the world has ever seen anything like this before. Hopefully it ends well.