Is $10,000 A Fair Value For Bitcoin in 2019? A Look at the Price of BTC in USD in Today’s Climate
- Bitcoin has surpassed $11,100 and many are asking whether this is a fair value
- With the influence of institutional investors in the space $10,000 seems a fair price
Bitcoin (BTC), the most popular digital asset, has been growing during the last few months and it was able to reach and surpass $10,000 after bottoming in December close to $3,200. This has attracted the attention of many investors around the world that are now following this bull trend. Can this bull trend continue in the future?
Is $10,000 A Fair Price for Bitcoin?
Back in 2017, Bitcoin experienced a very fast price increase in which the virtual currency surpassed $10,000 for the first time and moved up to $20,000, which nobody was expecting. Indeed, Bitcoin entered a parabolic phase that ended with a year-long bear market in 2018.
The keywords Bitcoin, cryptocurrency and blockchain became very important for the space and mainstream media started to cover all these different topics. Some companies such as CNBC, Bloomberg and CNN were discussing different issues about the market and which could be the future of the space.
However, during the bear trend that the digital currency experienced, mainstream media started to criticize it, and many outlets forgot about it. After December 2018 and the beginning of the new year, Bitcoin returned to news outlets and it experienced a massive price increase of over 150%.
In a recent article released by EthereumWorldNews, the writer Nick Chong gives some reasons why the digital currency has a fair value close to $10,000.
One of the reasons that he gave is related to large Wall Street companies such as Fidelity Investment and BNY Mellon getting involved in the cryptocurrency market. Indeed, the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE) is also working on a solution that would allow institutional investors to enter the crypto market. BNY Mellon has teamed up with Bakkt, which is the platform that the ICE is working on, in order to help interested investors enter the crypto space.
The second reason that Chong gave is related to the fact that there are massive corporations accepting digital currencies via different services. Some of these firms include AT&T, Nordstrom, Amazon’s Whole Foods and Microsoft.
The last time Bitcoin broke $10,000:
Fidelity wasn't storing it.
AT&T wasn't accepting it.
Congress wasn't fighting it.
Bakkt wasn't launching with it.
Microsoft wasn't building on it.
TD Ameritrade wasn't trading it.
Facebook wasn't competing with it.
— Rhythm (@Rhythmtrader) June 22, 2019
In addition to it, Microsoft has unveiled a new decentralized identity (DID) solution that aims at giving consumers more control over their data and personal information. The company informed that they were going to be working not only on top of blockchain technology but also using the Bitcoin blockchain.
Finally, Facebook has recently released Libra, a digital currency that is expected to revolutionize payments in many different industries in 2020. With this cryptocurrency that Facebook is working on, users could start learning about Bitcoin and other virtual currencies and start using them as well.
Clearly, thinking about Bitcoin at $20,000 with a bull run driven by retail investors would suggest that the digital asset is overvalued. However, with new institutions entering the space, working with it and accepting this virtual currency, Bitcoin above $10,000 does not seem overvalued at all.
At the time of writing this article, Bitcoin is being traded around $10,800 and it has a market capitalization of $192 billion, according to CoinMarketCap. In the last 24 hours, Bitcoin grew 0.89%.