Bitcoin is one of the hottest investment options currently. The price of this commodity has skyrocketed over the past few years. When Bitcoin first came into existence, people could literally purchase it for as low as a penny. But the prices started spiralling upwards and owners of Bitcoins became millionaires overnight. There are many theories doing the rounds about the price of Bitcoin. Some are predicting that the price of Bitcoin is going to increase further and it is just the beginning. But the cryptocurrency showed a lot of fluctuations in its price range and this made investors wary of investing in them.
Many experts are of the opinion that the price of Bitcoin will be around $1000 by 2020.This number appears to be pretty decent and is slightly in the cautious range according to some investors. The value of Bitcoin is going to appreciate in the coming years because it has been designed or the code is written in such a way that the price of the currency should appreciate with time. As a result some experts are of the opinion that even t5hough Bitcoin value is subject to several fluctuations, the value is never going to depreciate and investors can invest in this currency in order to obtain long term gains.
People who are aware of the technology behind Bitcoin forecast know that once the number of Bitcoins reaches a value of 21 million, its production will be stopped. This is different from the currency of different countries which has no limits and can be printed according to the ruling of their respective Governments. As the cap of 21 million is nearing, the supply of Bitcoins is slowly getting reduced. There was a time when people could use their home PCs to generate blocks and would be rewarded with 50 plus Bitcoins in exchange for a single block. But now it is impossible to create even a single block without joining a mining pool or linking one’s personal computer with other computers. You can also obtain Bitcoins by purchasing several specialized and expensive mining rigs.
There is also a cap on the number of Bitcoins that are rewarded for solving a block. The number of coins rewarded will be roughly reduced by half every once in four years. Satoshi Nakomoto , the creator of Bitcoins started this concept with the hope that doing so will increase the value of Bitcoins with time and thus the value of Bitcoin could increase by the year 2020.