Report: Bitcoin price could reach $500,000.. Find out the reasons

The current price of Bitcoin is about $95,500, but is it possible for it to reach $500,000?

The answer: Yes, it is possible. And over a long period of time, it is very likely that this will happen, and you can even own Bitcoin during that jump if you want to.

The Motley Fool website shows in a report quoted by “Al Arabiya Business” the reason why this huge rise is more likely than some think.

To understand why the price of Bitcoin could rise significantly in the coming years, it is necessary to realize a basic element in the economy, along with a unique property of Bitcoin itself.

The price of Bitcoin, like all digital currencies, is determined based on the balance between supply and demand in the open market. When buyers want to own the currency, they pay a price slightly higher than the current price to ensure that they get it instead of leaving the opportunity to others. In contrast, when sellers want to liquidate their holdings, they accept a slightly lower price to ensure that Bitcoin is converted into cash quickly.

The other factor influencing here is supply and demand. If the supply of a currency is fixed, as is the case with Bitcoin where it is mined at a set rate, the price will not change as long as demand remains at the same level and sellers remain willing to sell similar quantities.

But compared to the price of Bitcoin five years ago, traders are buying it today at a price that is almost 800% higher, even though the total circulating supply has only increased by 8%.

The obvious reason for this increase is that supply has increased much less than demand. In fact, supply has become scarcer due to what is known as halving, a process that occurs approximately every four years where mining rewards are cut in half, reducing the amount of new Bitcoin being pumped into the market.

So far, about 19.8 million Bitcoins have been mined out of 21 million, which means that supply will continue to decrease, even if demand does not increase much, which could lead to a significant increase in price.

The best way to take advantage of this phenomenon is to buy Bitcoin and hold it for as long as possible. It is worth noting that the equilibrium process is not the only factor that affects its price, as there are periodic updates to blockchain technology, in addition to the integration of Bitcoin into exchange-traded funds (ETFs), which increases its adoption in the traditional financial system, and supports the price increase over time.

Some estimates indicate that the price of Bitcoin may exceed $ 500,000 by mid-2026, with the possibility of additional catalysts such as the establishment of a national reserve for digital currencies in the United States or similar initiatives in other countries. However, it is better to be patient and not focus on setting an exact date, because what matters is the bigger picture.

In the end, if Bitcoin continues to make huge gains, why would you think about selling it once it reaches $ 500,000? This price may be just a stop on its upward journey, and holding it may be the smartest decision to achieve greater future profits.