The story of bitcoin’s increase in value has been told time after time. It substantially jumped from a few dollars to as high as $1,200 in less than a year before crashing down to as low as $300. Now it is trading steadily at more than $600, but how high will it go before the year comes to an end?
According to one venture capitalist, the price of the peer-to-peer decentralized digital currency will skyrocket to $2,000 by the end of 2014. Geoff Lewis, partner at the Founders Fund, told an audience at the CoinSummit in London on Thursday that he is bullish on bitcoin when volatility is low, but the virtual currency’s price will ultimately soar in the coming months.
Many have been optimistic about the price of bitcoin. For instance, the Winklevoss twins have projected that bitcoin will be worth $100,000, while other industry insiders have pegged the number at $50,000. In other words, according to some bitcoin experts, it’ll eventually become bigger than Facebook.
Whatever the case, Roger Ver, a millionaire investor who has been identified as “Bitcoin Jesus,” believes the $2,000 estimate is a conservative figure.
“I actually think $2000 is a pretty conservative estimate,” Ver told the London Telegraph. “We don’t know for sure if it’s going to happen in this year, but there’s no doubt in my mind that Bitcoin’s price is going to be thousands of dollars and, almost for sure, tens of thousands of dollars for one.”
At the time of this writing, there are approximately 13 million bitcoins in circulation – there are a total number of 21 million bitcoins – and there will be more than eight million bitcoin wallets in use around the world by the end of the year.
Despite the concern in the bitcoin community that federal governments and central banks would issue prohibitions against bitcoins and other digital currencies, many central banking officials have come out and espoused the benefits and possible impacts that virtual currencies could have on financial markets and international economies.
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