Bitcoin has broken through several key price levels last year, surpassing $5,000, $10,000 and even $15,000.
Undoubtedly, 2017 has been the year of bitcoin. While $1000 was the milestone everyone was anticipating bitcoin to surpass, it has shocked everyone with reaching as high $18,000.
Bitcoin surpassed the $1000 mark in January 2017 and within a year, bitcoin has multiplied its value about ten times.
The Journey to $20,000
Market analysts have pointed to factors like rising adoption, growing institutional interest and a steadily evolving regulatory framework that has been helping push this digital currency’s price higher.
Another factor that has helped bitcoin’s price is the price itself. Any time bitcoin’s exchange rate hits these new milestone highs, the media takes notice, in turn attracting more attention to bitcoin and drawing in more new users. This, of course, pushes up the price even further.
While it wasn’t the first time ever that bitcoin traded over $1,000, it had already happened briefly in late 2013 — the new $1,000 milestone was reached on the first days of 2017. The bitcoin markets hit $2,000 for the first time ever in May, followed by $3,000 in June and up to $4,000 in August of 2017, making headlines each time after which the price retracted a bit toward the end of the summer.
Needless to say at this point, bitcoin kept breaking records throughout the rest of the year. Finally, led by South Korean exchanges and followed by the rest of the world a day later, bitcoin breached the $10,000 mark in the last week of November 2017.
For bitcoin to reach from $1000 to $10000 in 10 months may seem too soon but it expected to rise (and stay) above $20000 much sooner. In December itself, the price of bitcoin has been rallying over $10,000. At the moment, the price of bitcoin is juggling between $9000-$10000, trying to gain a stable ground.
While the factors enabling the rise and rise of bitcoin have been listed, we will use percentages to see how the rise from $10000 to $20000 will be easier for bitcoin.
Every $1000 in price will be easier for bitcoin from now on since every increase will be a smaller percentage increase, owing to a large denominator/base.
When Bitcoin increased from $2000 to $5000, the overall increase in price, expressed in percentage would be:
While in the case of increase from $12000 from $15000:
Of course, in addition, the higher prices do bring about increased confidence as well. Therefore, for bitcoin, a rise from $10000 to $20000 will be far easier than $1 to $10000.
In conclusion, bitcoin does have the strongest network of any digital currency, but also the number of people participating in the network is growing exponentially.