VC Chris Dixon: Bitcoin May Fetch 100K In The Future
Many say Bitcoin May Fetch 100K
It is not surprising, but this is a common forecast for Bitcoin. The price of Bitcoin is surging constantly. In April 2013 one bitcoin was about $90, but before November of 2013 was over, it reached a new high of $340. Towards the end of 2013 it peaked around $1,242.
Though bitcoin is currently trading around $271, there are many bitcoin enthusiasts who firmly believe it will cross the $1,000 mark again. This camp refuses to believe bitcoin has seen it’s top.
Chris Dixon Explains Why You Should Give a Damn About Bitcoin
Good news feeds good news
There are people who believe that bitcoin prices will hit $100,000. Meet Chris Dixon, an American internet entrepreneur and investor. He earned his BA and MA from Columbia University, majoring in philosophy, and has an MBA from Harvard Business School.
Mr. Dixon believes bitcoin prices will reach that high, provided it becomes a major player in online transactions. There is no doubt that this seems too good to be true, especially at a time when bitcoins are priced so low.
But, Dixon has a good rationale behind his claim
He cites the example of domain names. In 1993, people hardly believed that a single domain name would fetch them a million dollars. That claim is now commonly accepted as the truth. People made fortunes selling domain names and others paid exorbitant sums of money to buy domain names. As the internet became mainstream, the prices of domain names skyrocketed.
However, there are people who believe otherwise. Many cite the scarce resource argument to counter Dixon’s point of view. They argue that the analogy of Bitcoin and domain names does not work in the real world. In fact, there is a vast majority of domains that are still cheap. Moreover, domain names are not limited like Bitcoin. Additionally, the domains that have flashiness (and great names) are the only ones that rake in millions. In the case of bitcoin, the last argument doesn’t hold good as all bitcoins are essentially the same.
Dixon’s estimate may be too large, but there is a real chance of Bitcoin becoming the preferred online currency
Regulation issues exist. In fact, there are two communities who would need to approve Bitcoin – the business and government communities. The latter is going to be a problem for Bitcoin but the business community would really accept it. As the political leaders would need to approve their constituency’s mandate and also seek help from their backers (the businessmen), they would have to approve Bitcoin in the long term.
There is still a pretty long way that Bitcoin has to travel. But, nothing is impossible for this crazy currency. Who would have ever believed that the exchange rate was $1 = 1,309.03 BTC back in October 5, 2009.
The roller coaster ride bitcoin experienced in 2013 is a clue to the fact that Bitcoin can reach any high or low
It all depends on bitcoin’s popularity among the masses. Bitcoin is doing pretty good as far as acceptance is concerned and bitcoin has seen steady growth in users from a humble beginning. Fetching $100,000 for a single bitcoin is not a dream that people see when they sleep anymore. It is a dream the investors see with their open eyes.