As I write this, digital currency bitcoin has hit yet another all-time high above $2,400, and is currently around $2,360.Bitcoin has experienced breathtaking gains so far this decade, and many experts are wondering -- could Bitcoin potentially rise to $1 million?There are a few potential factors that could be driving the current rally: Theoretically, yes, although consider what that would mean.As of this writing, there are approximately 16.35 million bitcoins in circulation.A price of $1 million each would translate to a total value of $16.35 trillion for all of the bitcoins in existence.Currently, the total value of bitcoin is about $39 billion.money supply (M2), which includes all physical currency, demand deposits, savings accounts, and money market accounts, is about $13.5 trillion.And this is just one country's money supply -- bitcoin, on the other hand, is a truly international currency.In fact, U.S.-based transactions are one of the smaller sources of bitcoin volume.With that in mind, consider that the global M2 money supply is estimated to be about $68.7 trillion, expressed in U.S.

My point is that while bitcoin would have to work a little to become a major player in the global currency market, the total bitcoin market value at $1 million each isn't an outlandish amount of money.Also, consider that going from the current price of around $2,400 to $1 million would represent a rather mild gain when compared to the gains of the past seven years.In fact, $100 worth of bitcoin purchased seven years ago, when a bitcoin was worth approximately $0.003, would be worth roughly $80 million today, a gain of about 800,000%.Meanwhile, a jump from $2,400 to $1 million would represent a gain of "only" 42,000%.Simply put, widespread mainstream acceptance is what would need to happen before bitcoin could reach the $1 million level, or anything close to it.However, there are some obstacles preventing the mass market from fully embracing the online currency.Volatility is a big one -- bitcoin plunged by more than 50% on three separate occasions between 2011 and 2014 and is still much more volatile than the currencies of developed nations.

There is a solid case to be made that the reasons for prior crashes no longer apply, but volatility is certainly still an issue.In addition, bitcoin is widely used for illegal activities, such as drug transactions and ransomware attacks due to its anonymous nature.Even so, there are many in the industry that are optimistic.For example, Wences Casares, a member of PayPal's board of directors and CEO of bitcoin wallet Xapo notably predicted that bitcoin will hit $1 million within 10 years.Others have even gone so far as to say that bitcoin could eventually replace gold as the financial "safe haven" or become a major reserve currency.However, bear in mind that any prediction of the future price of bitcoin is very speculative right now.There are a lot of things that would need to go right for bitcoin before a million-dollar valuation is possible, so keep that in mind before deciding to put a substantial amount of your hard-earned money into the digital currency.The computer-driven currency known as Bitcoin has been through a few rough years.

After peaking at $1,216 per Bitcoin at the end of 2013, conversion prices plunged all the way to $200 in just 16 months.bitcoin norwegian studentToday, Bitcoin values have surged back above $1,100 and might set fresh all-time highs someday soon.bitcoin algorithm minerThe Bitcoin boom in 2013 turned into a total rout.afd bitcoinIs the currency headed for another meltdown, or should you take Bitcoin more seriously this time around?Four years ago, Bitcoin found itself in a global spotlight.Having started as a hobby project in 2009, the crypto-currency had surged from "basically worthless" to a value of hundreds of dollars per currency unit.Investors, speculators, and downright gamblers were trying to find ways to profit from this new thing.On the back end, hobbyists gave way to serious number-crunchers who used special math-processing chips to process the exponentially increasing number of bitcoin blocks.

What followed was a series of scandals.Critics called the Bitcoin increase a "bubble," undermining trust in the currency.Perception is reality, or at least a significant part of the real value in tradeable assets that aren't backed by gold reserves or governmental guarantees.So Bitcoin prices started falling.The crash accelerated when a currency exchange known as Mt.Gox declared bankruptcy and shut down while managing some 70% of all Bitcoin transactions worldwide.The CEO of that exchange was later arrested and charged with embezzling $390 million from the service.Other exchanges shut their doors or suffered hacking attacks, often with a side of insider embezzling charges.Each embarrassment sparked another selling spree, and Bitcoin values plunged on heavy trading volumes.I could argue that the crash that started in 2014 was a necessary evil.It shook out several weak hands from the Bitcoin game, cementing a new set of leading trade exchanges and a heightened sense of security threats.We probably haven't seen the last Bitcoin embezzling scandal yet, but then again, no other currency is entirely free from misuse and occasional scandals.

More importantly, businesses and government regulators have started to treat Bitcoin as a serious and valuable resource.Goldman Sachs (NYSE:GS) has invested millions in a Bitcoin transaction manager in the hope of making money on the transactional side of this thing.Other banks and financial powerhouses are planning to introduce Bitcoin-based exchange-traded funds at some point, assuming that the SEC would approve this idea.The major credit card issuers may not be working Bitcoin itself into their services, but they are thinking hard about how to leverage Bitcoin-like technologies to improve their transaction management.That's not a long step away from tapping into the Bitcoin market directly.Elsewhere, you can use Bitcoin to pay for an increasing collection of real-world products and services.Microsoft (NASDAQ:MSFT) accepts it as payment for digital content and games in the online stores for Windows, Xbox Games, Xbox Music, and more.Want to subscribe to Sports Illustrated, Time, or Food & Wine?

Time (NYSE:TIME) takes Bitcoin as payment for magazine subscriptions.Computer hardware seller Newegg not only accepts the currency but also offered a 10% discount for Bitcoin-financed purchases for a while.And the list goes on.Most of these retailers haven't quite elevated Bitcoin to the full status of a real currency, like dollars or euros.It's more like a new type of gift card at this point, managed by somebody else.Returns on Bitcoin-financed purchases are typically given in the form of store credit -- or not at all.But even so, these are votes of confidence in the Bitcoin system, and these companies seem interested in riding or even shaping the wave of bringing it into common usage.Yes, things really are different this time.Bitcoin is still not quite as dependable as gold bullion or a roll of dollar bills, and not as useful in day-to-day use as cash or credit cards.But it's much closer to that status than it was a few years ago.Assuming that the biggest and nastiest back-end scandals have already been dealt with, the next couple of years should see fewer massive value drops and a more stable Bitcoin value in general.