There have been many bold predictions about the future value of bitcoin (BTC). In the past year, the digital currency has increased substantially from just a few dollars to as high as $1,200 – it’s currently trading at just over $800, which is still quite high.
One business expert thinks this is just the beginning for bitcoin and that it could rise to as high as $100,000 in the future. This means that the $800, which might be too high for some, is definitely a bargain for cryptocurrency investors.
Chris Dixon, a partner with Silicon Valley venture capital firm Andressen Horowitz, spoke to Wired magazine recently about bitcoin and its future. It’s likely, he says, that bitcoin will rise in value this year due to the fact that there is only a certain amount of bitcoins in circulation – approximately 21 million – and its popularity is surging all over the world.
To further justify his prediction, Dixon alluded to the business of domain names in the 1990s. “Domain names are an analogy,” explained Dixon. “It would have been absurd to say in 1993 that domain names were worth $10 million each.”
He added that purchasing domain names would have been one of the greatest investment strategies during the 1990s, even superior to putting money into some of the most successful Internet enterprises today.
“Probably the best investment in computer history would have been buying domain names in 1993,” said Dixon. “Better than Amazon. Better than Google.”
Dixon does concede that purchasing bitcoins is a speculative investment and he only owns less than one bitcoin, though he did buy a handful of bitcoins as Christmas presents for his family members. Plus Andressen Horowitz puts its money into software companies and not into currency speculation.
Nevertheless, Dixon sees a big future for the cryptocurrency industry: “I think this is going to be big,” he told his company. “I don’t know, but if it is, I want you to have a little piece of it.”
