Bitcoin 101 – Modelling the Price of Bitcoin – Is a $100,000 Bitcoin Possible?



Can the price of Bitcoin reach two thousand dollars, ten thousand, or more? Even if you consider the blockchain as the fundamental innovation of Bitcoin, price matters, and indeed, the higher the price, the more Bitcoin is protected.

In this video we focus on price, specifically in the attempt to model the price of Bitcoin. Big investors make price models for assets. Trouble is they keep this information private. Models may not predict the price, but the certainly provide a better understanding. In this video, James walks you through the concepts and challenges of modelling the price of Bitcoin. From velocity, transaction volume, supply, to all the big markets Bitcoin proposes to disrupt (hedge funds, gold, e-commerce, money supply, remittances etc). Better still we walk you through the alpha version of our open-source model.

The live model:

GitHub code:

Great post by Robert Sams:

By playing around with the model, you’ll find yourself understanding the concept in a richer way, and soon you’ll be walking and talking bitcoin price like a pro.

Welcome to WBN’s Bitcoin 101 Blackboard Series — a full beginner to expert course in bitcoin hosted by James D’Angelo. Please like, subscribe, comment or even drop a little jangly in our bitcoin tip jar
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  1. Thanks James, What a great talk! I like the price model. I just wonder if you can add Users and number of wallets variable. So if we are nowdays around 3M wallets in Blockchain only, with the increase in the future, how this will affect the price?
    Many thanks

  2. +world bitcoin network i'm trying to set up a model for bit coin myself, as I am producing a research paper at University and I would like to ask you how I can get data for some of the variables you used and formulate these into either Eviews on Stata. If you could help me that would be great. Can you get back to me as soon as please. 

  3. One key point you left out of this excellent video is: Pricing Bitcoin in terms of another currency depends heavily on the stability of That currency.

    As more countries, MNCs, and organizations realize how overvalued the US dollar really is as a world reserve currency, the price of EVERYTHING in terms of US Dollars will skyrocket because the markets will recognize just how much supply is available.

    Supply & demand applies to currencies too. 

  4. New to bitcoins and looking at setting up a wallet or two:
    Bitcoin needs to be simplified! 8 decimal places just confuses me! So let me get this straight… If I buy 20 Australian dollars worth of bitcoins today and I buy the same amount tomorrow. The amount that I receive in bitcoins could vary? I just don't understand how I can could  keep track of how much im actually spending. SOMEONE PLEASE HELP

  5. This is a very good presentation, helpful to those who want to approach bitcoin as a stock or a FOREX currency, but it is quite different.  None of the fiats are deflationary, limited in supply and so bitcoin will perform like none other.  I still give you a 'thumbs up' for the quality of the video and the content herein