#BTCvsMarkets
Bitcoin is heading towards $500,000. Shocking predictions for the future!
The cryptocurrency has jumped 800% in five years.
The current price of Bitcoin is around $95,500, but is it possible for it to reach $500,000?
The answer is: Yes, it is possible. Over a long time frame, it is very likely to happen, and you can own Bitcoin during that leap if you wish to.
The Motley Fool website presents in a report reviewed by Al Arabiya Business the reason why this massive increase is more likely than some might 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, alongside a unique feature that Bitcoin itself possesses.
The price of Bitcoin, like all cryptocurrencies, is determined based on 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 the quick conversion of Bitcoin to cash.
The other influential factor here is supply and demand. If the supply of the currency is fixed, as is the case with Bitcoin where it is mined at a specified rate, the price will not change as long as demand remains at the same level and sellers are willing to sell similar quantities.
