Billionaire makes huge prediction for bitcoin price

A significant and highly controversial upgrade of its software fell through. And the earlier, minor upgrade still isn't widely used yet. The most important problem these upgrades were supposed to fix bitcoin's biggest problem—that it's escalating popularity had exposed an underlying issue with Bitcoin's distributed database.

The issue limited just how much Bitcoin could process at any one time, making the network congested and transactions expensive not to mention power-hungry. Put simply, while Bitcoin has exploded in value and popularity, the base technology has remained stagnant. And that casts a shadow on its future — right when competition among cryptocurrencies is on fire. With this issue unresolved, Bitcoin lately hasn't evolved in the direction its founder or founders — we don't know his identity Satoshi Nakamoto had originally envisioned — for Bitcoin to become a peer-to-peer digital cash payments system.

Sure, you can use Bitcoins for payments, but with transaction fees going through the roof and Bitcoin's price constantly rising, it's just not a very good way to pay for things online. No wonder big online retailers such as Amazon aren't exactly lining up to introduce Bitcoin payments. The 1 thing most commonly purchased with bitcoin is the future regret that you didn't keep your bitcoin.

Some Bitcoin pundits, including most of its core development team, argue that moving slow, and with full consensus of the Bitcoin community, is the right way to go — certainly better than making rash changes and exposing the network to attacks. But Bitcoin's development process has been glacially slow; the scaling debate, which culminated with the failed Segwit2x fork, has been going on for years. Some big changes have happened, but not on Bitcoin's blockchain. Instead, several projects "hard forked" from Bitcoin, taking over its blockchain history but making changes to the software.

The most prominent of these, Bitcoin Cash, initially seemed to be a hastily put together project, but recently it gained support of some cryptocurrency pioneers. Roger Ver, an early Bitcoin investor and owner of Bitcoin. I'll do my best to use https: BitcoinCash is that Bitcoin. Is it possible for a Bitcoin fork to take over and become the de facto "real" Bitcoin? Yes, according to Sirer. It would be a slow process, as the vision behind one project runs into technical difficulties or is found to falter economically, others will emerge to fill the same needs.

Institutional investors are getting interested. Predictions about Bitcoin's price are getting crazier by the day. These predictions are problematic for several reasons. First, for every expert claiming Bitcoin's price will soar you'll find another who claims the cryptocurrency is worth zero. Secondly, most of these predictions aren't based on sound fundamental analysis because Bitcoin has no easily definable fundamentals. When assessing the value of a company, you can compare price with earnings or take dividend yield as indicators of value.

Unlike a company, Bitcoin doesn't generate revenue; it doesn't pay out dividends. Unlike gold, it has no industrial use and cannot be turned into shiny pendants.

The few metrics that we do have are of questionable value. Bitcoin's scarcity there will only be 21 million bitcoins minted is important but one could argue that other cryptocurrencies, which are being created daily, create a coin inflation of sorts.

Commonly cited Metcalfe's law , which roughly says that a network's value goes up with the number of users on the network, would make sense if Bitcoin users were actually using it as a payment system. But for all the headlines and Bitcoin billionaires , the underlying technology mostly stood still. A significant and highly controversial upgrade of its software fell through. And the earlier, minor upgrade still isn't widely used yet.

The most important problem these upgrades were supposed to fix bitcoin's biggest problem—that it's escalating popularity had exposed an underlying issue with Bitcoin's distributed database. The issue limited just how much Bitcoin could process at any one time, making the network congested and transactions expensive not to mention power-hungry. Put simply, while Bitcoin has exploded in value and popularity, the base technology has remained stagnant.

And that casts a shadow on its future — right when competition among cryptocurrencies is on fire. With this issue unresolved, Bitcoin lately hasn't evolved in the direction its founder or founders — we don't know his identity Satoshi Nakamoto had originally envisioned — for Bitcoin to become a peer-to-peer digital cash payments system. Sure, you can use Bitcoins for payments, but with transaction fees going through the roof and Bitcoin's price constantly rising, it's just not a very good way to pay for things online.

No wonder big online retailers such as Amazon aren't exactly lining up to introduce Bitcoin payments. The 1 thing most commonly purchased with bitcoin is the future regret that you didn't keep your bitcoin. Some Bitcoin pundits, including most of its core development team, argue that moving slow, and with full consensus of the Bitcoin community, is the right way to go — certainly better than making rash changes and exposing the network to attacks.

But Bitcoin's development process has been glacially slow; the scaling debate, which culminated with the failed Segwit2x fork, has been going on for years.

Some big changes have happened, but not on Bitcoin's blockchain. Instead, several projects "hard forked" from Bitcoin, taking over its blockchain history but making changes to the software.

Despite the danger presented by Bitcoin forks, the original Bitcoin is still the one everyone is talking about, mainly due to the price rise. Millions of people invested for the first time in , as exchanges such as Coinbase saw unprecedented growth. Institutional investors are getting interested. Predictions about Bitcoin's price are getting crazier by the day.

These predictions are problematic for several reasons. First, for every expert claiming Bitcoin's price will soar you'll find another who claims the cryptocurrency is worth zero. Secondly, most of these predictions aren't based on sound fundamental analysis because Bitcoin has no easily definable fundamentals.

When assessing the value of a company, you can compare price with earnings or take dividend yield as indicators of value. Unlike a company, Bitcoin doesn't generate revenue; it doesn't pay out dividends. Unlike gold, it has no industrial use and cannot be turned into shiny pendants.