Bitcoin is slowly but steadily moving to the $100K threshold.
Considering that the current price of this digital coin is almost $ 8000, the target at $100K seems very far-fetched. This, in fact, is not that unreal. Bitcoin has numerous benefits advantages, which can propel it towards phenomenal highs when even a $ 100,000 threshold would be just another intermediate target before reaching the $ 1 million mark.
Bitcoin’s non-inflationary nature is among its unique properties. The significance of this characteristic becomes even more apparent when compared to the imperfect nature of fiat money, which is doomed to failure and inflationary oblivion. This hypothesis is easy to check in the current economic realities of Venezuela, where the huge budget deficit and the loss of confidence in the national currency have already become the reason for hyperinflation.
According to the International Monetary Fund (IMF), inflation in Venezuela is projected to reach 10 000 000% by the end of 2019, the country’s GDP is expected to decline by 5%, and economic growth rate by 25%. The country has already faced a situation when the paper to print the money on costs ten times more than the money’s value itself. Such an economic crisis may as well embrace other countries, and the consequences will be as devastating - fiat money will simply cease to hold any value.
Here’s an interesting observation: every time we see another peak of inflation in Venezuela, the demand for “inflation-free” Bitcoins significantly increases. Bitcoin trading activity in Venezuela, and, accordingly, the demand for it can be calculated by the number of transactions to purchase BTC. Such information can be obtained through various information resources. At the same time, we should keep in mind that the number of Bitcoins is limited and the supply of new coins is continually decreasing. The last Bitcoin should be mined around 2140, but Bitcoin halving is less than a year away. And four years after there will be another one. So in about 10 years, the reward for a new Bitcoin block will decrease so much that the number of coins in circulation will hardly change.
It would be fair to add that Bitcoin is not the only digital coin that has a non-inflationary nature. A great number of altcoins possess similar property. And although it’s true, unlike them, only Bitcoin is truly decentralized, which means the blockchain’s structure and principles will remain unchanged. Today, no mining pool controls more than 20% of the bitcoin network hashrate. At the same time, the five largest pools account for 70% of Bitcoin hashrate (from 10 to 19% each), and the rest of the pools are below the 10% mark. We believe that the increased decentralization of Bitcoin is another fundamentally positive factor that will ensure further bullish rally.