Bitcoin is in a powerful upward trend, and has delivered more ROI to investors than any other asset on the planet. In just four years from today, the leading market cap cryptocurrency has done 37x.
Here’s a trip back in memory looking at how far we’ve come since then and how far the Bitcoin price could rise in the future if things continue to rise.
Bitcoin Price Action has delivered 37x returns since February 2017
Bitcoin is not like other assets. It shares most of the similarities with physical gold, but only exists in cyberspace. The crypto asset is digitally encrypted so that the supply is limited to only 21 million BTC.
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Its digital rarity has prompted investors to view the asset as a hedge against inflation, just as gold has played a role for centuries. But when it comes to Bitcoin, as it beats gold in pretty much every way imaginable, the advantage of the fledgling cryptocurrency is is much better than in other markets, even precious metals.
In fact, Bitcoin has done 37x in just four years. The chart below, which was produced earlier this morning, cites a 36x increase, but the cryptocurrency has already added an additional $ 1000 to its price tag while this piece was being written.
Other four year periods have produced even greater results | BTCCharts on Twitter
Four years ago from this date, Bitcoin traded below $ 1,000 on its way back from being bear market floor and beyond to $ 20,000. Where it goes next can be shocking, however.
The cryptocurrency’s current trajectory means that the number is going up
On a certain moment, Bitcoin was practically worthless. Other four-year phases of Bitcoin price action have also resulted in 53x, 37x and 125x returns. The boom and bust cycles keep attracting new participants.
Four years was chosen as the sample size, because that’s how often every block reward is halved. The event is built into the Bitcoin core code, and the mechanism reduces the number of BTC miners received at these regularly scheduled intervals.
Bitcoin has a lot more to go during this phase | BTCUSD on TradingView.com
This mechanism is the magic that makes internet money so much more interesting than gold. In gold bull marketsminers increase productivity and output to produce more ounces of the precious metal, flooding the market with more and more supply. Ultimately, supply is enough to meet demand and momentum begins to wane.
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With Bitcoin, when demand starts to increasethe supply is halved, causing the price to rise exponentially and become parabolic. This dramatic move is what is drawing more and more investors in, and is exactly what we are seeing again.
The current return is 37x in four years. What will it be in the next four years?
Featured image from Deposit Photos, Charts from TradingView.com