Many Bitcoin enthusiasts have been enamored lately with tantalizing rumors that the world’s leading cryptocurrency could spike upwards in valuation sooner rather than later. Cryptocurrency investors and skeptics are always discussing the latest valuation of Bitcoin, but a consensus is starting to form around the market that Bitcoin is soon going to be making a sizable shift in its valuation, which has led many to ponder whether $7,500 is a fair price for the biggest digital currency.
Is $7,500 a fair price for Bitcoin? Despite the rumors that the cryptocurrency is set to reach the stars soon, it’s probably safe to say that the cryptocurrency’s current valuation isn’t far off the mark.
Some predictions have gone off the rails
There are too many predictions surrounding Bitcoin’s valuation to count; countless skeptics insist that Bitcoin and all other cryptocurrencies will tank any day now, while supporters and long-time investors insist that they’ll soon be millionaires despite relatively small investments. The truth of the matter is that some predictions about Bitcoin have gone off the rails, and we’ve been inundated with so many outrageous claims that it’s getting challenging for investors and crypto-enthusiast to keep abreast of the misinformed tides.
Recently, for instance, some investors have been predicting that Bitcoin will soon shock the financial world and attain a mammoth valuation of $25,000 this year alone, before spiking up to more than $100,000 by 2020. It’s probably safe to say that the predictions positing that Bitcoin will soon overtake global financial markets are as inaccurate as those insisting it will be dead any day now, though doubtless we’ll still have to deal with fantasy claims for the foreseeable future.
Those seriously interested in the price of Bitcoin shouldn’t sate themselves with mere rumors and market buzz, but should rather review the fundamentals to determine whether the world’s leading cryptocurrency is fairly priced. Looking at the level of detestation with which cryptocurrencies are greeted by central banks and economic authorities around the world, for instance, is an excellent way to gauge Bitcoin’s long-term viability.
Banks and governments have by and large shunned cryptocurrencies thus far, initially dismissing them as mere fads and still refusing to take them seriously even after they attained impressive valuations and developed sizable fan bases. Some commentators even note, probably accurately, that banks and governments are actually scared of Bitcoin and other digital currencies that defy their control. As long as Bitcoin must grapple with the unfair hatred of major economic authorities, its long-term potential will always be stymied.
Can Bitcoin ever beat $7,500?
It would be absurd to posit that Bitcoin will never climb past $7,500 again – indeed, it’s all but certain that the cryptocurrency traded on platforms like binance will one day break its own valuation records again. To insist that Bitcoin will soon be commanding astonishing valuations in the tens or even hundreds of thousands, however, is actually damaging to the cryptocurrency’s value in the long-term. If Bitcoin can’t meet the absurd goalpost that some of its most ardent defenders are setting up, then critics will have even more ammunition with which to dismiss it and other cryptocurrencies.
Similarly, Bitcoin and other cryptocurrencies will continue to see their valuations unfairly dampened by the fact that many banks, governments, and economic rule-makers are shunning the cryptocurrency largely out of ignorance or fear. Luckily, this is a surmountable obstacle that crypto-enthusiasts can look to overcome sooner rather than later; the resilience of the global cryptocurrency market has wowed even its harshest critics, and tokens like Bitcoin and Ethereum have established that they’re here for the long-term.
All of this will contribute to Bitcoin’s gradual recovery from the losses its experienced since it once rose to international fame and a record valuation at a dizzying pace. Similarly, the broad growth expected to be enjoyed by just about everyone in the cryptocurrency scene will undoubtedly buoy Bitcoin further, and help the cryptocurrency establish itself as “the future of money,” as so many of its proponents have hoped for. Before Bitcoin can ever truly take the next big step into our financial lives, however, the cryptocurrency must continue its arduous lurch towards the mainstream. Similarly, manipulation in the cryptocurrency market could prevent Bitcoin from attaining a truly “fair” valuation for many years. Already, today’s leading traders have many reasons to believe the market is skewed. Thus, it’s challenging to say whether Bitcoin’s current valuation (or any valuation, for that matter) is fair until we’ve devised a new and better way to crack down on fraud. Bitcoin backers shouldn’t worry themselves in a mess – the world’s most popular cryptocurrency isn’t going anywhere anytime soon. Despite the hubbub being raised over Bitcoin’s future, however, a valuation hovering around $7,500 is vastly more fair than fairytale dreams of $50,000 or $100,000.