Business & Investment

Where is Bitcoin Going? From 10,000 Bitcoins for a Couple of Pizzas to $11k/Coin over 7 Years, and More.

The tide of Bitcoin is higher than ever before. Everybody is talking about the cryptocurrency. Investors are rushing to buy more of it as the surge price is showing that expectations are high, which keeps pushing the price to go up. Stressful enough, Columbia is harsh. While all of my time and attention seems to be occupied by classes, readings, writing papers, fellowship project, working, student leadership activities, exercising, cooking, cleaning, career development, and the list keeps going on and on, it is still hard to ignore the fact that Bitcoin’s value has soared 10 fold, from $997 on January 1, 2017, to nearly $11,000 in December of the same year. It is crazy to recall that 10,000 of bitcoins could buy only a couple of pizzas 7 years ago. Today I walked in Lean Crust Pizza which is one of the few businesses around New York City accepting Bitcoin. I ended up paying 0.001 Bitcoin for my pizza. It’s hard to believe we’ve gone so far in such little time.

 

So what drives Bitcoin price to hype? It can be simply explained by the supply and demand concept in economics but no one can predict how higher Bitcoin can go. James Altucher, an American hedge fund manager and a top 10 LinkedIn influencer, has made a CNBC headline yesterday with his prediction that Bitcoin will top $1 million per coin by 2020. Keep in mind that there is a limited amount of bitcoin that can be produced, which means that one day no more Bitcoins can come out to the market. This process is called mining. As of today, 16.5 million Bitcoins have been mined since it was created in 2009 by Satoshi Nakamoto, the pseudonymous creator of the cryptocurrency. In fact, the total number of Bitcoin will be capped at 21 million, which makes the currency become a scarce asset and pushes its price even higher. But some people doubt that there will be a huge crash because of bearishness as they compare it to the dotcom bubble in the 90s.