“I have no doubt that Bitcoin is going to reach well beyond a $100,000.” This is what Eran Eyal, CEO of distributed marketplace Shopin, said when was asked if the price of Bitcoin was going to rise over $20,000. Although he did not give a specific time-frame of when Bitcoin will surpass $100,000, he pointed to some historical facts and related data to support his claim. He pointed that Ethereum was trading at around $245 around September but is now trading at around $957 at the time of writing.
While the biggest coins continue to lose value, Eran insists that the price drops are due to the China and South Korea’s crackdown on cryptocurrencies. South Korea’s justice ministry is proposing a ban on cryptocurrency trading. The Chinese government is targeting to censor and shut down all online platforms that facilitate trading. This is bad for the cryptocurrency industry because South Korea is the largest cryptocurrency trading market barring the U.S. and Japan.
Eran further says, “In the United States, the Bitcoin exchanges were shut down three times.” On its own, this is a sign that Bitcoin always finds a way to survive events that result in major price drops. The cryptocurrency market is a very young market with a with an upward trend. Elan is convinced that Bitcoin is not going to crash but will stabilize and gain momentum when the crackdown stops. He attributes the crackdown to governments trying to mitigate the ramifications of cryptocurrency trading.
Elan calls Bitcoin “a store of value,” just like gold is. He also points out that Ethereum is different. Ethereum is a platform used to build apps and other cryptocurrencies. He says that Ethereum’s value is dependant on the use of the cryptocurrencies that are built on it. Each coin’s value is derived from its utility. This gives cryptocurrencies an economic value within their sectors of utilization.
Fluctuations are natural in the young industry. They are not an indication of a market crash. In a way, the future of cryptocurrencies is bound to that of Bitcoin. The prediction that Bitcoin’s price will go high above $100,000 is an indication of a bright future. This upward trend should also be observed in the majority of other alternative coins. The crackdown of cryptocurrencies in South Korea and China will come to an end soon.
The fluctuations and price drops are only an indication of what is happening at the present moment. They have no bearing on the future prices of Bitcoin and altcoins. The cryptocurrency market is not headed for a crash. In time, the price of cryptocurrencies will start to show an upward increase and Bitcoin will make it past the $100,000 mark.
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Last modified: May 20, 2020 9:09 PM UTC