Bitcoin’s all-time-high today: But when will it reach $100k?
Bitcoin’s price today, October 20, reached an all-time high of $67 000, surpassing $64 895 per Bitcoin, set earlier this year.
We last looked at price in May 2020 here (https://sofiaglobe.com/2020/05/11/bitcoin-halving-on-may-11-what-it-means-and-why-you-should-care/) when we were, as now, full of hope for Bitcoin’s adoption. This hope is on track with an estimated 100m+ Bitcoin holders.
As high inflation turns out not to be transitory, more savers will be looking for a hedge against the endless central government money printing. The squeeze on supply lines is set to push prices even higher and inflation is already beginning to impact the cost of living everywhere.
As noted, we analysed the predictions of Plan B at the time of the last halving and that model will be validated if $100 000 per Bitcoin is achieved by December 31.
But in Bitcoin time, that was a long time ago, and very few forecast what was about to happen. In point of fact, that forecast was foreseen by Michael Saylor, formerly a Bitcoin sceptic and CEO Microstrategy, who fell down the rabbit hole and made a dash to exchange cash (“a melting ice cube”) for Bitcoin.
His company now owns 114 042 Bitcoin, bought at an average price of $17 713 per Bitcoin – a gain of more than $3.3 billion at today’s prices. This triggered a trend for others to do something similar, with Tesla placing Bitcoin on the balance sheet (and temporarily accepting Bitcoin for the purchase of Tesla, and Jack Dorsey’s Twitter and Square both buying Bitcoin).
This past spring saw China banning all Bitcoin mining, and while this spooked many, the network adjusted – as designed – and kept on validating blocks. It turned out to be hugely positive for the network, by removing the last area of geographical centralisation.
How long will it be before the big tech names of Apple, Google and Facebook follow Microstrategy?
Further, we saw El Salvador make Bitcoin legal tender in early September, while buying Bitcoin for that country’s reserves and looking into mining Bitcoin using energy from its volcanoes. El Salvadoreans stand to save £300m if remittance fees, and as a way for the unbanked to finally have a way to save in their Bitcoin wallet. Expect Venezuela, Panama, Brazil and other countries to follow El Salvador’s lead over the next 12 months.
Even the mainly negative mainstream media comment is shifting, and most recently, this week the US Securities Exchange Commission approved the first Bitcoin futures ETF. The landscape has changed. Looking ahead, we’ll see US banks scramble to sell you, and custody, your Bitcoin.
One of the most exciting developments is that Twitter is rolling out the api from strike.me, through which the Bitcoin lightning network will enable almost free, instant and final settlement payment to anyone with a Twitter account.
Bitcoin tipping is already activated for all iOS users worldwide.
We are now at the stage of Bitcoin fee-free remittances and fee-free Bitcoin acceptances for merchants around the world.
Soon everyone in the world with an internet connection would be able to participate in this payment revolution. With the tools for Bitcoin lighting as a free open source payment rail, we are at the stage where the network is just starting. It will prove to be unstoppable and soon will be a seamless, wondrous experience.
Days like this are interesting enough, but nothing will compare to the media attention we shall see when $100 000 per Bitcoin is reached. In the meantime, expect the usual wild ride. Our message is that Bitcoin is not a commodity to be traded, it is a monetary scarcity, a technology and a protocol and should be owned by all.
Final thought: “The halls of eternity echo with the cries of those who sold their Bitcoin” – Michael Saylor of Microstrategy.
(Image: Leszek Soltys/freeimages.com)
