Demand factors for crypto-currencies is the reduction in supply that’s been seen in recent months, the rate of bitcoin units added has been more than halved over the past year. While mining has been slowing, bitcoin won’t reach its theoretical maximum number of units until 2045 or later. So there is only one direction that Bitcoin's value can go?
The uber performance of crypto-currencies like bitcoin and Ethereum is coming at the expense of gold, says Tom Lee, the managing partner and head of research at FGA and he thinks that the growing preference for the crypto-currencies over gold is actually helping propel into the massive financial growth.
Meanwhile, gold production has risen “sharply” since 2009, and now sits at 3,100 metric tons, the highest on record.
“Bitcoin is arguably becoming a scarcer store of value. Investors need to identify strategies to leverage this potential rise in cryptocurrencies.”
So with all of that considered, how high can bitcoin go?
“Already central banks have looked into this possibility,” Lee says. “In our view, this is a game changer, enhancing the legitimacy of the currency and likely accelerating the substitution for gold.”
Bitcoin is up a whopping 172% per cent this year and Ethereum has skyrocketed 3,200% over the same period, sitting at $US235
Read more: https://www.businessinsider.com.au/bitcoin-price-ethereum-cannibalizing-gold-2017-7?r=US&IR=T