Despite countless "expert" opinions suggesting that bitcoin (BTYC), ethereum or any of a number of other prominent digital currencies will shoot up into unexplored price territory in the near future, as of yet the signs do not point to those predictions being realized.

Bitcoin continues to hover in the $6,000 to $7,000 range, with analysts expressing optimism or shock in turn when it moves up or down. It's an impressive value, particularly in comparison with the rest of the cryptocurrency field, but it is still a far cry from the highs of roughly $20,000 that the coin experienced just months ago. For many, the biggest question now is how to reinvigorate BTC, bringing it back up to that $20,000 range or, ideally, above into new highs. At the same time, though, the cryptocurrency space is always becoming more and more crowded. Could "purging" the lesser-known, unsuccessful digital tokens help a coin like BTC to rise again?

Bitcoin as Logarithmic Asset

Clem Chambers, the CEO of investment website and author of multiple investment books, believes that bitcoin is a logarithmic asset. Through July 2018, bitcoin was in a bear market, trending lower. Chambers believes that bitcoin has been reflective of a bubble and that the bubble has burst. However, by disregarding the non-centralized and non-mineable tokens, it is possible that BTC could climb back up to $20,000 or even dramatically higher.

Chambers suggests in a Forbes report that there may be more distance to fall before BTC hits the bottom. While Chambers is waiting for headlines suggesting that "bitcoin is dead," investors less determined to find the true bottom of the market may be interested in investing sooner. Nonetheless, whether we are at or approaching the bottom or if there's still room for BTC prices to fall, Chambers believes that bitcoin in particular and cryptocurrencies in general have been growing logarithmically, suggesting a compound growth of 26% per time period. Over 10 periods of 26% growth, then, the total growth would be 1,000%.

Key to Logarithmic Growth

Chambers believes that the key to continued logarithmic growth is whether or not the "market mechanism of [BTC] remains viral." How does one ensure that this is the case? One way to do so would be to clear the cryptocurrency space of unnecessary clutter. Hundreds of coins have piled on to the digital currency trend started by bitcoin in the hopes of achieving either quick money or more sustained success. Some of been successful, particularly when they are able to distinguish themselves with innovations like new consensus mechanisms and token distribution models. Most, though, have seen middling success at best.

The digital currency system remains largely unregulated, so a potential culling of the herd would have to occur voluntarily. Of course, there are also many benefits to a marketplace that includes a diverse array of digital tokens and assets. However, getting rid of some unsuccessful coins may reshift the focus back onto BTC and other prominent digital currencies, providing them the viral energy that they need to continue Chambers' upward trends. Imagining a situation in which one could infuse "a couple of hundred billion [into] the total cryptocurrency market cap," Chambers says it's easy to see that "another x10 is doable. As such, if bitcoin is still behaving logarithmically it will soon be on its way to the moon again."

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.