BitcoinNews AnalysisPrice Analysis

Bitcoin Will 10x This Year – Can Your Investments Do That?

By November 5, 2017 No Comments
On January 1st of this year, bitcoin was trading at $925.  Today, at more than $7300, it looks like $10,000 bitcoin is all but inevitable.  Can bitcoin 10x yet again?

wanna feel like this dude?  try buying bitcoin. On January 1st of this year, bitcoin was trading at $925. Today, at close to $7500, it looks like $10,000 bitcoin is all but inevitable. Can bitcoin pull off yet another 10x move?

Disclaimer:  The information in this blog represents the opinions of its author and is for educational purposes only.  It is not intended as investment advice.  The bitcoin market is extremely risky so you should only invest money you are willing to lose.

Our Halloween Price Projection of $8543

based on the long-term uptrend, the next major fibonacci target of 161.8% is at $8196. chart: coinigy.com, technical analysis: digitalassetuniversity.com

based on the long-term uptrend, the next major fibonacci target of 161.8% is at $8543. chart: coinigy.com, technical analysis: digitalassetuniversity.com

We published this chart, exactly as you see it above, with the exact same caption, in our Halloween blog post.  A mathematical analysis of price-wave patterns using Fibonacci numbers led us to project a price target of $8543.  That was after a high of $6422. Bitcoin is currently trading close to $7500.

Quick Bounce

After a very quick bounce which almost reached the 38.2% retracement of the recent runup, bitcoin price continued its relentless march toward our price target and eventually $10,000.  Since this retracement was a very shallow one, don't get spooked by a deeper pullback into the zone between the 50% and 38% Fibonacci levels ($6738 - $6906), before the next leg up.

Discord over the SegWit2x fork may cause a few hiccups along the way but we maintain our short-term target of $8543, with a projection of $10,000 bitcoin by year-end.

Bitcoin continues it's relentless drive toward 10x in 2017.  After the rapid price advance from interim lows of $6028 to $7449, it barely paused for a 38% retracement before advancing to new highs near $7500

Bitcoin continues its relentless drive toward 10x in 2017. After the rapid price advance from interim lows of $6028 to $7449, it barely paused for a 38% retracement before advancing to new highs near $7500. chart:coinigy.com, technical analysis: digitalassetuniversity.com

Traditional Investment Returns

When you talk about traditional investment returns, you're probably used to numbers like 10%.  The return on real estate averages about 5-10% per year.  A good return in the stock market is 10%, with this year being a particularly good one - The S&P 500 index is up about 17.5 % year-to-date.

My Barber And My Mailman are Buying Bitcoin

They say when your barber is talking about it, it's a bubble.  OK, but when in its 8 year history has bitcoin not been called a bubble?  And hasn't the word "bubble ' been used to describe amazon, google, and facebook?

They say when your barber is talking about bitcoin, it's a bubble. OK, but when in its 8 year history has bitcoin not been called a bubble? And hasn't the word "bubble ' also been used to describe amazon, google, and facebook?

The Cryptocurrency "x-factor"

Some investment returns in cryptocurrency are so astronomical that it can be hard to wrap your head around the numbers, and  it hardly makes sense to talk about them in percentage terms.  We project that bitcoin will pull off a 10x this year - That's a 1,000 percent return, in just one year!  That means that $1000 invested January 1st - currently worth about $7500, will be worth more than $10,000 by new year's day.  You'd have to wait several decades to see those kind of returns in the stock market.

Did you know that cryptocurrencies are by far the best performing asset class over the past 7 years?  A $1,000 investment just this past January in ethereum, the cryptocurrency that powers blockchain applications, is worth more than $30,000 today - that's 30x in just 10 months!

Can Your Investments Do That?

It's unlikely that you've ever held an investment that 10x'd in a year, but these returns are becoming more and more common in the cryptocurrency space.   Most of your investments probably perform more like the chart below, showing the year-to-date return of $1000 invested in Apple stock, the Nasdaq, or the S&P.

The current value of $1000 invested in Apple stock vs. the Nasdaq vs. the S&P on Jan 1, 2017. chart: Nasdaq

With traditional investments, you'd have to wait decades for the returns you could achieve in a single year investing in several cryptocurrencies.

A Revolution

Why is this happening?  We are in the midst of nothing short of a revolution.

Amazon is killing retail because they revolutionized the supply chain, taking out the middleman.

The world's largest taxi service, Uber, doesn't own a single vehicle.  How?  They decentralized ride-sharing, making it peer-to-peer.

The world's biggest accomodation provider, Airbnb, doesn't own a single property, they took the middleman - the hotel - out of the loop.

Are you starting to see a pattern here?

Decentralization, Peer-to-Peer, and Math

  • Decentralized services are replacing central proprietary ones
  •  Math and computation is replacing trusted third parties
  • Peer-to-peer algorithms are replacing inefficient corporate services

This is not a fad or hype - this is the future- and it’s here, now.

Now is the perfect time to get into the cryptocurrency market, while it’s outperforming every other asset class.

The Upside Potential

We already know that it's possible to achieve returns in cryptocurrencies in a year that would take decades or even centuries in traditional markets.  But what's the upside potential, how big can cryptocurrencies get?

According to Brian Kelly of CNBC's Fast Money, the upside potential is huge.  He cites a market cap of $1 trillion (another 10x its current market cap) as a conservative estimate.  Others cite even larger numbers, like the total worldwide global currency trading volume on Forex, currently about $5 trillion - every single day.  

With current daily bitcoin dollar volume having 10x'd in the past year from $57 million to $628 million, clearly the cryptocurrency market is still a minuscule percentage of the global currency market so the upside potential is huge.

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