Bitcoin Users Worldwide

These statistical trends can provide us with an accurate estimation of future bitcoin prices as they correlate with the growth rate of new bitcoin users. First, we must assume that a significant number of individuals and firms will begin purchasing and transacting with bitcoin in 2014. The claims made by these assumptions can be attributed to the immense inflow of capital invested in start-up businesses that provide services in order to enhance the efficiency, convenience, and security for new and existing users. For example, CoinBase just recently received the biggest investment in a crypto-company to date totalling $25 million from Andreessen Horowitz.

It is estimated that the number of “potential bitcoin users” or those technically capable of acquiring and transacting with the digital currency has reached approximately 700 million. By revising this number to include individuals who are ideologically open to its usage, we can estimate that 70 million (i.e. 10% of total potential users) will adopt bitcoin in the future. Finally, by excluding children and individuals with no savings, the number of potential bitcoin users will increase by 20 million. This figure represents 5-fold increase from the current rate of bitcoin users.

This graph represents the bitcoin price prediction for 2014 based on the bitcoin price cycle from one and two past cycles. By utilizing these past cycles, a “possible band for the future price of bitcoin” (depicted in orange) is created. If we take a closer look, it becomes evident that bitcoin has the potential to hit $700 in June. As a response, a price rally could consume much of July 2014 and finally settle at a record high of $2, 500 by September, just before dropping back to $1, 500 in October. Overall, the market may experience a 2014 yearly high of $3, 000 (i.e. six times its current price standing.)