Most experts are predicting that bitcoin will break $1,000 in 2017. This would mean that bitcoin’s price may actually double from where it is trading at right now. Such returns would present an extraordinary amount of growth. Such returns are also very plausible.
There are several key factors at play. First, the global economy is on tenuous grounds, and bitcoin is a safe haven currency/asset. If the global economy does hit a rough patch, which is very plausible, then bitcoin and other safe haven assets and currencies will enjoy a boost.
Second, many governments, including Japan and the Eurozone, have been engaging in quantitative easing. This means that they are increasing their money supply by creating money and buying up new assets. This increases inflation and encourages people to invest in things like bitcoin.
Third, an increasing number of companies, and especially retailers, are taking interest in bitcoin. Others are also interesting in blockchain technology. As interest grows, adoption will spread, and as more people use bitcoin, prices should increase.
So while $5,000 and other numbers are perhaps a bit overly optimistic, $1,000 seems very reasonable. And if a major event does unfold, such as a global recession, or a major company like Amazon announcing that it will accept bitcoin, who knows those $5,000 dollar predictions might not look so overzealous after all.