Is Bitcoin’s Real Price $6,300 Or $100,000 Dollars?
Bitcoin is the most known virtual currency in the world. It has been adopted by several companies and retail investors have entered the market making small purchases. At the moment, Bitcoin is being traded close to $6,300 but according to a report, its real value is currently $100,000 dollars.
According to this report, it is possible to measure the network activity and the price of the cryptocurrency. That means that there is a relationship between the number of users on the network and the price of Bitcoin. However, BTC is not currently being traded around $100,000 due to the fact that there are some momentaneous restrictions in the market.
The author of the report explains that Bitcoin hit an important threshold when it reached $20,000 dollars. Network activity at that time was also at an all-time high, and fees skyrocketed up to $62 dollars. This marks that there was a limit since more transactions could be processed but the fees were making it almost impractical.
However, these limits are not static, and indeed, they move. With new technologies being developed and implemented on the network (such as SegWit or the Lightning Network), the number of transactions is also able to grow.
This report explains that Bitcoin could reach this price level, but it does not mean that it will. At least anytime soon. Furthermore, it is possible to say that $100,000 dollars would be a limit for the price to continue growing.
SegWit has been embraced by several exchanges and wallets in the market. This has allowed Bitcoin to process transactions in shorter periods of time with fewer fees for each of hem. Since December 2017, Bitcoin’s transactional capacity has increased by 212 per cent.
Segregated Witness allows each transaction to be smaller in size, allowing blocks to process more transactions.
According to the author of the report, Hans Hauge, fees work in order to control the number of users that are using the platform.
On the matter,
“If the network usage exceeds, or even nears its peak capacity, fees will spike and drive people away. This is what happened in the last bubble when the network could not sustain the rapid growth.”
In the future, with the Lightning Network, Bitcoin would be capable of handling millions of transactions at very low cost. This would have a clear impact on Bitcoin’s main network. However, it will be important to see how Bitcoin’s price would react to it.