In recent months the price of Bitcoin has risen sharply on balance, despite some fluctuations. How high can the value of Bitcoin rise? In the view of Wim Boonstra, Senior Advisor at Rabobank, Bitcoin could still increase in value, but it could just as easily go the other way.
Bitcoin’s value is determined by the value its enthusiasts attach to it
“Some people anticipate that the value of Bitcoin can rise much, much higher, to a million dollars even. If asked whether this is possible, I can only say: yes, it could. The value of Bitcoin could even rise to as much as two million dollars, or more. But it might not, because the chance that the value of Bitcoin could suddenly crash, even to zero, is arguably just as likely.”
“The value of Bitcoin is completely determined by the value its enthusiasts attach to it. Hypes can go very far, though. Back in the 17th century when Tulip Mania was sweeping the Netherlands, there was one type of tulip bulb that was worth so much you could trade it for a fine canal house in Amsterdam. Relatively speaking, the hype surrounding Bitcoin is not so bad, although with a much larger international reach.”
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