The Bitcoin community has become so absorbed in the price of Bitcoin. Everyone wants to know if the price go up or down? Will losing support at $350 cause a crash and spell the doom of Bitcoin?
Currently it can be seen that price is forming a huge reversal pattern and may be due for more losses, even with the announcement that Paypal will start accepting Bitcoin. In current charts, a head and shoulders formation has been completed, with bitcoin price testing the neckline of the pattern.
So far, 2015 has not been any better than 2014 for Bitcoin. At one stage it fell by another 47% to $170, though the price has since rallied to around $210. But in November 2013, one bitcoin cost the same as an ounce of gold – $1,240. Back then it had risen by over 1,000% in just a few weeks.
According to the official Bitcoin protocol, the number of BTC (the Bitcoin currency symbol) that can ever be mined into existence is capped at 21 million BTC. That's it. Currently, just under 13 million are in circulation. But because of its finite supply, Bitcoin proponents believe that each BTC can only rise in value - perhaps to as high as $1 million.
I've heard you say that one day 1 BTC could be worth $1 million. I've qualified that statement a number of times. If Bitcoin lives up to its potential and becomes the working capital of international trade, instead of countries and companies sitting on yen, U.S. dollars, Swiss francs, they could just use Bitcoin for cross-border transactions. It would be far more efficient. If that were to happen, Bitcoin would be taking $10 trillion of foreign currency that sits in multinational companies. If that were the case, each Bitcoin could be worth $1 million. The probability of that happening would be very low but it is possible.