In the Bitcoin world, more and more people are using this virtual currency. Chart 1 gives the amount of transactions a day and it's booming. If you really think more and more users are going to use Bitcoin, you will know that this chart 1 is going up.
|Chart 1: Bitcoin: Transactions Per Day|
|Chart 2: Bitcoin: Market Price|
|Chart 3: Bitcoin: Amount of Bitcoins in Circulation|
With that increase in market price of 1 Bitcoin, the market cap is now $4 billion. Which is still a very small number compared to how big our world is. So I believe there is still a lot of upside.
|Chart 4: Bitcoin: Market Capitalization|
As long as the governments don't interfere, I believe the market of Bitcoin will continue to grow as more and more users pile into this virtual world (Chart 5). Chart 5 gives the amount of Bitcoin addresses, which is more or less the equivalent of the amount of users.
|Chart 5: Bitcoin: Amount of unique Bitcoin addresses|
Now compare Chart 5 to Chart 2. Yes, that's your correlation.
Bitcoin's price is correlated to the amount of user accounts. If you believe that more and more people are going to use Bitcoin, you will know the price of Bitcoin will go up. People can say it's a Ponzi scheme, that it's a hype, but I say a market of Bitcoin and related tangible buy-able products will not disappear from the earth. Their presence will only increase. So it wasn't that complicated, Bitcoin doesn't follow the gold price, it was much simpler, Bitcoin followed the hype itself. The higher the demand, the higher the price.
Buy 1 bitcoin if you dare, that $400 might multiply to $400000 in a few years.