Saxo Bank’s Analyst Kay Van Peterson is looking for long term and sees a big rise ahead for bitcoin. In December 2016, Kay Van Peterson said to CNBC that ‘It will be raised and will reach to $2000 in 2017’ at that time the trade of bitcoin was $754.
Bitcoin has limited supply of 21 million out of this only 16.3 million is in circulation. The full amount will be done till 2040 but Kay Van Peterson says that 17 million will be in circulation in next 10 years.
How will bitcoin hit $10,000?
According to rough calculation of Van Peterson, where market cap equals to ten times to daily volume which is $175 billion. Kan Van Peterson overall bitcoins market value be 1.75 trillion.so, now dividing by 17 million as he said coming up in 10 years. By this rough calculation, Each Bitcoin can be $10000 in next 10 years.
According to data from industry website coin desk, the current figure of bitcoin is $37.8 billion.
Originally price of Bitcoins fluctuates and depends on people what they are willing to buy from Bitcoins. The low value of Bitcoin was in 2013 year of $1200.
Uses and Advantage of Bitcoins:
1) Bitcoin is one type of Digital Currency.
2) Bitcoin allow us to send and receive bitcoins without third party. It is peer to peer currency and runs on a system.
3) It is one type of decentralized currency which means no government no individual person and no group holds property. It can be spend all over the world bu depends on the receiver that he accepts it as a payment or not.
4) Bitcoin is dubbed as a ‘currency of Internet’ as it is free from geographical boundaries.
5) The transaction details of bitcoins are publicly so it is possible to know from the bitcoins have came.
6) Transaction are public so anyone can see the Balance and Transaction of any Bitcoin.
7) Bitcoins can be used similar to money. Some keep them for investment purpose and some uses them for international money transfer.
8) Bitcoins can be used for sending and receiving to anyone anywhere from all over the world at low cost.
9) Bitcoins payments are impossible to block and The wallet’s cannot be frozen.
10) Transaction of Bitcoins cannot be Reversed and Refundable so it should be done within the Business or people you trust.
Dis-Advantages of Bitcoin:
1) Lack of Acceptance
2) Lack of Protection
3) Anti Bitcoin Politician
Users of Bitcoin is increasing day by day, RBI is concerned with the using of virtual currency stating that it poses potential financial, legal, customer protection and security-related risks. Earlier in Feb 2017 RBI cautioned that “Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk,”
Earlier RBI has warned Dealers and Companies to deal with Bitcoin.
Statement on 2 March 2017 from R Gandhi Deputy Governor said that,”In these type of virtual currency there is no central bank or no monetary authority”.
As per Arjun ram Meghwal Minister of State for Finance said that,”virtual currencies like bitcoins as medium for payment is not authorized by RBI”.
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