With Bitcoin At $1000, One Thing That Could Still Send It Exponentially Higher

Jan. 02, 2017 3:10 PM ET53 Comments


  • Bitcoin starts 2017 over $1000.
  • We identify the most common sense scenario that sees its price expand exponentially from here; adding retail into the equation.
  • We are long Bitcoin for the long term.

By Scott Tzu

In today's article, we wanted to look at why lower volatility for bitcoin is a great sign for those that own it and the one thing that we think can cause bitcoin to appreciate exponentially higher in the coming years, after it breaks through all time highs this year, which we predict.

Bitcoin has certainly been the story heading into 2017. The digital currency is now over $1000 per bitcoin, approaching record levels near $1163 that the digital currency hit back in 2013.

The surge in bitcoin pricing has come mostly from China, as the country has put capital controls in place and also has seen the yuan devalue by about 7% over the last 12 months, an astonishing amount when it comes to a foreign currency.

Though BTC is still far more volatile than most conventional currencies, it has been far less volatile over the last year, showing confidence in those that hold the digital currency. Exchange blowups and stories of hacks don't create the same panic that they did a couple of years ago. People are starting to buy, and hold, bitcoin.

In terms of breaking through new highs, the recent technical surge in the currency and the break through the $1000 mark simply has us and the market believing that it can break through all time highs and continue moving higher this year. A lot has happened in the three years since bitcoin was at these levels prior. We have seen several bitcoin exchanges blow up, we have seen volatility in the global currency market and we have seen major companies in major banks start to look at Blockchain as a form of currency. Focus has always turned to bitcoin, whether it was after the Brexit vote or after the U.S. election.

Over the

This article was written by

Contributors: Scott Tzu, Parke Shall, Thom Lachenmann (contributors write under pen names for anonymity purposes) Please read Seeking Alpha's Policy on Anonymous Contributors to familiarize yourself with the site's terms and conditions relating to anonymous authors.

Disclosure: I am/we are long BITCOIN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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