Earlier this week an article was published which discussed how Bitcoins valuation could be set to 100k at most. As we know, the upper limit for BTC is currently set at $20k, an all time high that has not yet been matched since the cryptocurrency boom of late 2017. Now, many believe that whilst $100k is a way off, it still remains as a final upper limit for the value of Bitcoin. This number comes from the strong relationship between the previous prices of Bitcoin in the past and the network activity. Essentially, this means that each coin will be worth more if the Bitcoin network is busy and on its feet more.
Despite this, technical restrictions mean that Bitcoin’s growth will be slowed down in the short term.
The limit for Bitcoin?
The article talks about how the recently hit thresholds of the soft limit when prices surged up to the $20,000 mark. Network activity was on a high during this time and this caused fees to increase too. By 22nd December, the average price of a fee was $62.50.
This was seen as a soft limit but as more utilisation could be had, there was less practicality and more cost to the idea.
The soft and hard limit is sure to change with the big change of growth that the crypto space sector has been used to. Nevertheless, with its core upgrades and BIP implementations, Bitcoin is always improving and also making significant leaps through continual progress in the Lightning Network, Schnorr Signatures and SegWit.
BTC Manager commented on the matter saying:
“An important distinction needs to be made, however: just because the theoretical cap of price is at $100,000 doesn’t mean Bitcoin will see that price anytime soon. The findings only state that when the next bubble occurs, the price should be no higher than $100,000.”
Could SegWit Cause More BTC?
Despite SegWit not being a new development, Bitcoins latest bull run had SegWit already implemented on the main net. But still, the adoption changed.
Since it was created, adoption has shown a healthy trend upward, recently spiking over 50%. In December last year adoption rates were just over 12% which meant that Bitcoin transaction capacity has surged by 50%.
Bitcoin transactional capacity is now going up by over 200%, this is due to the growing support for SegWit.