Bitcoin may end up raising $ 100k - expert explains cryptocurrency boom

 Bitcoin may end up raising $ 100k - expert explains cryptocurrency boom

The Flipside Crypto CEO discusses why bitcoin has risen .the SEC's role in crypto, new projects to watch out for, and why we most likely won't see a drop to $ 10,000, but may see $ 100,000 in the future.

Over the past year, the value and popularity of Bitcoin has skyrocketed. The cryptocurrency, which was over $ 51,000 at the time of this posting, was once considered mysterious many decades ago. This is considered largely mainstream now: large financial companies such as PayPal (PYPL) - Get Report and Visa (V) - Get Report are now offering crypto services, and more online stores are accepting digital currency. Even tech giant Nvidia (NVDA) - Get Report has created a new chip designed specifically for cryptocurrency mining. (Cryptocurrencies lacking a central banking system can be digitally mined to generate a new currency, offering large payouts for successful digital miners.)

But as bitcoin's value climbs to new daily highs and other currencies and projects join the race, regulators are taking over and digital currency bubbles will burst.

To gain insight into Bitcoin's growth and what lies ahead, TheStreet leveraged the expertise of Dave Balter, Flipside Crypto CEO, who provides analytics and business intelligence for crypto organizations and maintains a regular column on TheStreet. Balter, who is also a partner at venture capital firm True Ventures, has been running Flipside since 2017.

The following exchange of views, which took place by email, has been slightly edited for clarity.

TheStreet: Despite the relative volatility of Bitcoin, we have seen explosive growth in its value over the past few months, especially from October to the present. At the same time, consumers have seen the name pop up in a growing number of retailers and celebrities like Tesla's Elon Musk (TSLA) - Get Report shakes the market with tweets about cryptocurrencies like Bitcoin and Dogecoin. Has cryptocurrency really become popular? Why?

Balter: The incredible rise in the price of Bitcoin lately is due to two factors: belief systems and recent global trends.

Bitcoin has always been about technical stability and network effects. Initially, Bitcoin was judged by how resilient it is: can it be hacked? Was “decentralization” a workable model? When it was halved, did it continue to work? Over the past 10+ years, many of these problems have been resolved. Bitcoin works. Doesn't break.

In terms of network effects, just like any other form of money, Bitcoin's value is largely determined by how many people believe in it. Yuval Noah Harari's book Sapiens notes that gold and the dollar are highly valued because enough people believe they will retain value. It's the same with bitcoins; in the beginning, a small number of people believed they were driving the early accumulation of value, but now the network effects have become significant as celebrity investors and high-profile organizations supported his belief system.

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