Bitcoin is trading at record highs on Monday, but the cryptocurrency may still be far from hitting its ceiling.
The cryptocurrency has 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, the bitcoin’s price could hit $US100,000 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 (ie, “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 8 months.
“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 this doubling trend will continue until bitcoin reaches mass adoption.
By February 2021, Porto believes, it could be worth over $US100,000.
Get the latest Bitcoin price here.