I honestly thought I had more time. For months, I declared through public mediums my forecast for Bitcoin prices breaking the $10,000 barrier. In my view, that lofty target was certainly within the realm of possibility. However, I anticipated that this milestone would be achieved at earliest in late 2018. Now, we’ll see five digits likely before the end of this year.
Of course, with Bitcoin prices on the cusp of a previously ludicrous level, critics and fiscally conservative analysts are busy concocting their Bitcoin bubble stories. On the surface, their arguments seemingly holds water. Bitcoin at its core appears to many as merely internet tokens. If the web goes down, Bitcoin prices go down with it.
However, such cataclysmic disasters are highly improbable. More importantly, many of these naysayers are focused too much on Bitcoin prices, not valuations. Unlike several other cryptocurrencies, Bitcoin’s supply is extremely limited – less than 17 million coins are in circulation, and we will only have a 21 million maximum count.
In other words, as global demand seeps into leading cryptocurrencies, Bitcoin prices have nowhere to go but up. Nevertheless, we are far away from a Bitcoin bubble.
According to data compiled by Business Insider, a staggering $5 trillion are traded on average, every single day! Spread out over weeks, months, and years, you can quickly see how fiat currencies hegemonically dominate the broader financial discourse. With cryptocurrencies as a whole only accounting for less than $300 billion of market capitalization, Bitcoin prices are truly a drop in the bucket.
In order for the Bitcoin bubble stories to fundamentally stick, cryptocurrencies would have to reach unsustainable levels. Similar to the housing collapse that began in 2006, the size of the total speculation value has to exceed the sustainability point before we can classify Bitcoin as a bubble.
That’s why I’m not convinced that we reached that ominous level. With Bitcoin’s total value less than $160 billion, that’s an incredibly undervalued proposition considering that Bitcoin is the currency of the internet. Keep in mind that we’re not just dealing with one country, but rather, the entire planet.
Rather than an opportunity to take profits and steer clear, I look at $10,000 Bitcoin as the beginning of the end for Wall Street’s hegemonic control of the financial system. What we have with Bitcoin and cryptocurrencies is a transparent platform that is free for all – no plunge protection teams, no special credentials for after-hours trading. If you have access to the internet, you can have access to Bitcoin.
Again, the mainstream hasn’t caught on, which is yet another reason to dismiss the Bitcoin bubble fantasies. They remain fixated on the price tag, all the while ignoring the blockchain’s deeper implications.