The current price of Bitcoin is around $93,300, but is it possible for it to reach $500,000?
The answer: Yes, this is possible. Over a long time frame, it is very likely to happen, and you can own Bitcoin during that leap if you wish.
The Motley Fool website, in a report reviewed by "Al Arabiya Business", presents the reason why this huge increase is more likely than some think.
To understand why the price of Bitcoin could rise significantly in the coming years, it is essential to grasp a fundamental element of economics, along with a unique characteristic that Bitcoin itself possesses.
The price of Bitcoin, like all cryptocurrencies, is determined by the balance between supply and demand in the open market. When buyers want to own the currency, they pay a slightly higher price than the current price to ensure they get it instead of leaving the opportunity for others. Conversely, when sellers want to liquidate their holdings, they accept a slightly lower price to ensure a quick conversion of Bitcoin to cash.
The other influencing factor here is supply and demand. If the supply of the currency is fixed, as is the case with Bitcoin, which is mined at a specific rate, the price will not change as long as demand remains at the same level and sellers are willing to sell similar amounts.
