Ten years ago it would have seemed absurd if someone told you that money that you could not touch would be worth more than that car you owned in college freshman year. However, cryptocurrency, also known as digital currency, has come a long way since then, and none more so than the Bitcoin.
The Bitcoin is the most widely used, most valuable form of cryptocurrency in the market today. And as investors mine and buy more bitcoins and the cryptocurrency gets more scarce, its value continues rising. Just last week, the value of a single bitcoin was estimated at $8,000, an all-time high since the currency began circulating in 2009. Experts say that the value is expected to rise and close at $10,000 by the end of 2017.
The Value of a Bitcoin
Right now you might be thinking ‘I know someone who owns bitcoins.’ But what you may not know is that most people who own the cryptocurrency own it in fractions. In fact, the majority of bitcoin investors only own half of a bitcoin. That means that if the average value of a bitcoin is placed at $8,000, most bitcoin owners only have a $4,000 stake in it. It’s no wonder that investors will not sell until the value of a bitcoin rises significantly.
In a survey conducted by LendEDU, a survey company with no specific industrial ties, bitcoin investors expressed interest in holding on to their digital investments until the value of a bitcoin peaked at $200,000, or at least multiplied noticeably. The report stated that about two-thirds of all bitcoin owners were holding on to their Bitcoin with the hopes that its value would appreciate. “Most owners want to keep their bitcoins for 1-3 years,” the report delineated, “with some planning to store the coins for over a decade.”