Crypto Blue Chips Predicts New Theoretical Bitcoin (BTC) Price Ceiling is $100,000
The Price Ceiling for Bitcoin is $100,000
Recently, an article set the theoretical price ceiling for Bitcoin at $100,000. The blog arrived at this value by considering the volume of activity on the Bitcoin network and the past values of the digital currency.
Ideally, more activity on the Bitcoin network should translate into a higher value for the cryptocurrency. However, technical restrictions means that this is unachievable.
According to the post, the Bitcoin market attained the upper cap of the soft limit when the value of BTC reached $20,000. At the time, the intensity of activity on the Bitcoin network was a t a record high. As a result, the transaction fees increased to $62.50. This limit is regarded as the soft limit because the network would still be usable, although it would be much costlier and therefore impractical.
Due to the rapidly evolving nature of the crypto space, soft and hard limits tend to change from time to time. For instance, the Bitcoin network regularly implements new features through upgrades, as well as the integration of third-party features such as SegWit, the Lightning Network and Schnorr Signatures.
It is worth noting that the theoretical price ceiling of $100k does not mean that the value of BTC will reach those levels in the near future. Essentially, this theory implies that during the next bubble, the price is unlikely to go beyond $100,000.
The Potential Impact of SegWit
SegWit has been around for some time; in fact, during the famous Bitcoin bull run of 2017, this feature was already ingrained onto the Bitcoin mainnet. Nevertheless, its adoption rates have increasing significantly. Currently, the adoption rate is at 53%, up from 12.5% in December last year. The surge in SegWit adoption means that the transactional capacity of the Bitcoin network has increased substantially.
Typically, SegWit handles signature data in a distinctive way. Also, this feature measures transactions by block weight, rather than block size. This means that a block that is entirely made of SegWit transactions is equivalent to a 4MB block although it can comfortably fit into a 1MB block.
Hans Hauge believes at SegWit will play a key role in sustaining the high value of Bitcoin. Precisely, Hans mentioned that every bubble always ends with people leaving the network due to increased transaction fees and overwhelming of the network.
According to him,
“SegWit will enable the network to comfortably handle the increased activity without having to increase the fees.”