As it hits new highs, there is no shortage of bold predictions about Bitcoin reaching US$100,000 or more. Often these are based on not much more than extrapolations by people with vested interests: the price has gone up a lot so it will keep going up.
If it gets above its previous high, it must keep going up. There is also “charting” or “technical analysis” – looking at graphs and seeing patterns in them.
There may be fancy terms such as “resistance levels” and “Tenkan-Sen”. There is talk about “fundamentals”. Let’s examine this last idea.
Does Bitcoin have a fundamental value? A fundamental value in traditional financial-speak means a value based on what return (or cash flow) is generated by an asset.