So the price for bitcoin sky-rocketed from $2500 to $4300 in a matter of a couple of weeks. That is over a 70% gain. There is a lot of talk as to why this has happened. The first is the splitting of bitcoin and the second was due to a massive increase in trade from Japan. Here is why our Q4 bitcoin prediction is $7250
On August 1st, 2017, The bitcoin blockchain was split into two currencies. Bitcoin (BTC) and Bitcoin Cash (BCH). The reason for the split is because the technology behind bitcoin needed an update to improve transaction speeds and other faults. The major miners and exchanges hold a lot of power in deciding whether or not a change is implemented into the blockchain. The decision to implement new technology was not unanimous and so the currency was split into two to accommodate both sides. The people who did not want change (BCH) and the people that wanted the change (BTC). When the currency was split, what ever amount of BTC you had, you now owned the same amount in (BCH). Basically free money. There are some caveats to obtaining your BCH so view our post on that for more info. This is one reason for our bitcoin prediction.
Second, the Japanese have recently stepped up their game in bitcoin trade amounting to “…nearly 46 percent of global trade volume.” according to an article from CNBC. The article goes on to state that investors are looking for perceived safe havens for investments because of looming nuclear threats.
“Clearly we’re in some kind of bubble and it should pop, right? Not so fast!”
So because of these two situations, the price has sky rocketed. so where will it go from here? Clearly we’re in some kind of bubble and it should pop, right? Not so fast! Here are two more reasons to keep your money in bitcoin.
Bitcache is a new technology developed by the Kim Dotcom. How this technology works is not completely understood but what is known is that Bitcache is a micropayment company, a bitcoin wallet, it will be the underlying technology for Megaupload 2.0 and Kim Dotcom claims that the bitcoin price will inflate heavily because of it. Kim Dotcom is a very intelligent man who is constantly innovating in the technology industry.
An article from Vanity Fair explains how investors, who once thought Trump would execute ideas to boost growth in the economy, are now getting cold feet and may pull out of the stock market come Fall 2017. The stock market and the crypto currency market cap are loosely related in that when one moves a lot the other may see ripple effects. We hope those ripple effects will manifest into higher bitcoin prices.
With that information, bitcoin should touch $7250 by the end of Q4 being that it is also the holiday season. What is your bitcoin prediction?