The end of 2017 has seen widespread speculation and bull markets for Bitcoin and other cryptocurrencies. Many people are suggesting that the price of Bitcoin will rise further in 2018, with figures being bandied about that include a million dollars by 2020. 

But would anybody bet that much money on the chance of it reaching $50,000 in a twelve month period? Apparently, Yes. A Bitcoin derivatives market, LedgerX, released data in December that one of their investors had purchased Bitcoin options worth almost $1m, on a $50,000 call.

What this means in basic terms is that these options will be worth nothing unless the price of Bitcoin rises to at least $50,000 by the end of December 2018. And that means that the speculator will lose the whole million dollar bet. If the investor is right in this projection, and Bitcoin\'s price tops the $50,000 level next December, they will be entitled to purchase 275 bitcoins, at $50,000 each, making an overall transaction of around $13.8m.

How does this make money for the speculator? The bet relies on the price not only achieving $50,000 within a year but going above it. Once the price tops $50,000, the investor would start to make a profit on the bitcoin value. Whether this turns out well or all goes horribly wrong, only December 2018 will show