Tech Odds: Bitcoin Soars To New Highs

Anyone familiar with Bitcoin knows that the mysterious cryptocurrency can have its volatile moments. Throughout its brief existence, it has seen dizzying heights and terrifying lows.

Right now, the price is soaring to record highs. On Thursday, Bitcoin broke the $1800 (USD) mark. That comes just a couple of days after skipping past $1700 for the first time. It’s been a wild ride. The currency started the month of April near the $1000 mark and it’s possible we’ll see it worth double that in the near-future.

So what brought on the sudden surge?

The most popular theory is that the boom is due to increased demand from Japan. The Japanese government recently acknowledged Bitcoin as a legal form of payment, paving the way for mainstream adoption.

Also, the SEC, which rejected an application for a Bitcoin ETF (exchange-traded fund) earlier in March, has announced it will be reconsidering the decision. An ETF would also go a long way in increasing the cryptocurrency’s mainstream appeal.

As I write this, the price of Bitcoin dropped a bit from yesterday, currently holding a value of $1,743(USD). But by the time you’re reading this, it could be very different. Let’s take a look at the odds for the enigmatic currency in 2017.

Bitcoin Odds

O/U on highest value by year-end 2017: $2400

O/U on lowest value by year-end 2017: $750

Bitcoin has grown almost 90% in under three months, and it could drop just as fast. It’s happened before, and I wouldn’t be surprised if it happens again. In early January of this year, the coin hit a low of $800. Maybe it’s just wishful thinking, but I don’t think it’ll sink too far past that anytime soon.

As for the ceiling, Bitcoin has some serious issues regarding transaction times and fees. The bitcoin community is divided on how to deal with these problems, and if it continues, it could hinder the currency’s growth.

Odds a Bitcoin ETF is approved by the SEC in 2017: 13/7

A Bitcoin ETF, backed by the Winklevoss twins, was rejected earlier in the year by the SEC. Now the commission is reviewing their decision. But don’t be too optimistic just yet; Bitcoin is still treated with suspicion and skepticism, and the SEC is not too thrilled about the currency’s lack of oversight.

O/U on Bitcoin market capitalization on December 31, 2017: $40B

Bitcoin is currently has a market cap of around 30 billion, with a price of around $1800 and a circulating supply of around 16,000,000 bitcoins. At this rate, the market cap will far exceed 40B by year-end, but that’s assuming no hiccups along the way.