Back in 2014 when a single bitcoin was valued at just under $500, venture capitalist Tim Draper made a prediction that the value of one bitcoin would rise to at least $10,000 within three years. At the time, nobody believed that the value of bitcoins would be valued that highly. Fast forward to 2017, the value of bitcoins had significantly risen.
Throughout the years, the value of bitcoins had fluctuated, but the value always stayed close to $500. Even in the summer of 2016, the value of a singular bitcoin was fluctuating between $500-$700 range.
In 2017, as more people started investing in bitcoin, its value began to rise slowly. As more people began investing in bitcoin and the value began to rise, more and more people began to notice bitcoin. Some had heard of bitcoin before but had never invested in it. Others were hearing about it for the first time. Either way, the value of bitcoins was on the rise because more people had begun to invest in it.
Bitcoin has been on fire this year. From a value of around $1,000 in January, it rose to a value of over $11,000 the morning of November 29th. Bitcoin has gotten so big that the number accounts on Coinbase, the largest bitcoin trading platform, was found earlier this month to be greater than the number of Charles Schwab brokerage accounts.
The Nasdaq even announced recently that it would start trading bitcoin futures next year. A staggering testament to the sudden adoption of bitcoin by the masses Bitcoin has been on a winning streak, and many believe it is in a bubble.
When the value of bitcoin hit $10,000 on the morning of November 29th, it kept climbing and quickly surpassed $11,000. In a span of under twelve hours, the value of a bitcoin rose by about $1,500 to surpass Tim Draper's prediction of $10,000 to reach a peak of just over $11,300. After reaching that peak, the bitcoin's value rapidly dropped to under $11,000 and continued to drop to just under $10,000 where it was at the time this article was written.
Some people believe that bitcoin's value is rapidly dropping because a bitcoin price bubble had burst. They believe the price is correcting itself and will continue to drop. These people are urging bitcoin owners to sell their stake before the value drops more. I disagree with them.
The holidays are coming up, and that means families will get together. I have no doubt bitcoin will be a topic of conversation at many family get-togethers this year. People will tell their family members about the exponential growth of bitcoin's value, and their family members will invest due to a fear of missing out. Thus, with all the new investments in bitcoin, the price will go up again.
