Bitcoin
ATM.

REUTERS/Bogdan
Cristel


Bitcoin is
trading at record highs on Monday, but the cryptocurrency may
still be far from hitting its ceiling.

It rallied 16.19% since July 31, despite
last week’s fork
that split it in two. It’s up 465% since
last year.

According to analysis by Dennis Porto, a bitcoin investor and
Harvard academic, bitcoin’s price could hit $100,000 per coin if
it continues to follow one of tech’s “golden rules” — Moore’s
law.

The rule, which was devised in 1965 by Intel cofounder Gordon
Moore, describes the exponential improvements of digital
technology.

“Moore’s law specifically applied to the number of
transistors on a circuit but can be applied to any digital
technology,” Porto wrote in an email to Business Insider. “Any
technology that is growing exponentially (i.e., ‘following
Moore’s law’) has a doubling time.”

Typically, however, the rule applies to a technology’s computing
power or capabilities. This is the first time Porto has noticed a
technology’s price following Moore’s law.

Since bitcoin’s inception, according to Porto, its price has
doubled every eight months.



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Dennis Porto

This poses a unique opportunity for investors: Whereas it
was difficult to invest in circuits or internet speeds, it is
easy to buy a bitcoin,” Porto said.

Porto expects that this doubling trend could continue until
bitcoin reaches mass adoption. Of course, another cryptocurrency
could usurp bitcoin in the meantime.

By February 2021, Porto believes, it could be worth over
$100,000.

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