The world’s number one cryptocurrency, Bitcoin has a lot of ardent supporters. It’s not a secret that some IT and crypto experts are very bullish about BTC: they make crazy predictions some of which actualize. What do you think will happen to Bitcoin in the nearest year? Let’s read about one bullish Bitcoin price prediction and try to figure out whether it will come true.
Do you believe that Bitcoin will cost $50,000 by 2021? If not, this post might change your mind.
$50,000 And More Optimistic Price Predictions: Who Makes Them?
We have already seen Bitcoin’s all-time high $19,783.06 on December 17, 2017. So who said it’s not possible to reach the new height again? There are a few experts who do believe in BTC’s potential:
In his recent interview to Express.co.uk, Joseph Denne, CEO, and founder of Edge Network expressed that we’re likely to see Bitcoin’s new all-time high within the next 12-24 months. How does he explain that? Bitcoin has a well-established underlying technology, so it’s more or less sound; the hash rate is high as never before, and generally we have administrative clearness in some countries, and the ecosystem is growing with BTC being introduced to everyday life.
Simon Peters, the analyst at eToro, also notes that the level of adoption is the key aspect which shows whether BTC is able to reach a $50,000 level. Generally, it’s possible.
Tom Lee from Fundstrat believes that BTC can reach $36,000 in 2019 already.
Bobby Lee says that by the end of 2021, BTC will cost its maximum - $333,000
In April 2018, Mark Yusko claimed that BTC will reach $75,000 by 2020.
Jim Blasko (founder of Bitcoin Talk Radio) said that BTC will cost somewhere between $100,000-200,000 by the end of 2020.
Mike Novogratz and Sonny Singh claim that BTC should reach $20,000 in 2019.
We all remember McAfee’s post about BTC reaching $1 mln. He doesn’t seem to change his mind.
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD— John McAfee (@officialmcafee) November 29, 2017
As you see, the Bitcoin price prediction of $50,000 is not the craziest one.
However, the rise won’t happen out of nowhere. What exactly should happen for BTC to reach such heights?
Aspects that will make BTC price soar
Getting back to Simon Peter’s interview, let’s outline the aspects he said would contribute to Bitcoin’s major growth:
- Engagement of mainstream audiences;
- Introduction of Bitcoin futures and ETF on stocks;
- More institutional investors;
- Further advances on the technological side.
What else should drive Bitcoin’s growth?
1. 21 million Bitcoins – the amount is strictly limited
A total of 21 million coins will be mined, 16.8 million already received, about 4 million lost forever. The first of these was added on January 3rd, 2009. The limited number and difficulty of mining, which is constantly increasing, affects the growth of the coin rate and the difficulty of obtaining it.
2. BTC is a pioneer: it has the greatest impact on society
The main advantage of Bitcoin over other digital money is that it became the first cryptocurrency, received attention from investors and the press, various companies were created to trade and support it. Many people have tried to capitalize on the popularity of the coin. Because of this, the BTC rate increased significantly in 2017.
3. Fear of missing out
In 2017, the exchange rate increased by 1,500%. People began to appear who earned a fortune solely on the fact that they acquired Bitcoin on time. This has created a fear of not having time to make a profit from the growing cryptocurrency rate. They invest in a coin, thereby giving rise to a demand for a limited number of coins, so the rate is growing.
4. Lost keys
A large number of Bitcoins remained on discarded computers, locked wallets and lost hard drives. Currency holders, which in one way or another take it out of circulation, reduce supply, but demand remains the same - value increases.
5. Large investment funds begin to trust Bitcoin
The largest Chicago options exchange CBOE and the largest North American market of financial derivatives CME at the end of last year launched offers to trade the first cryptocurrency. Goldman Sachs, a large investment bank, recognized Bitcoin as real money. This makes investors feel comfortable when they make contributions, because of this the value of the coin begins to grow.
6. Mining is getting more complicated and more expensive
Bitcoin mining is designed so that the more coins are created, the more difficult it is to mine the following. It is produced on computers, so it begins to require more processing power. This leads to high system and energy costs. In the event that costs increase significantly, mining will not be so profitable, this will cause a slight delay in the supply of new coins, which again will limit the supply and, with equal demand, will cause an increase in value.
Many Bitcoin holders keep it and are in no hurry to part with it, however, they can still sell their coins when the value reaches a certain level. One way or another, this also reduces the number of coins that are in circulation, the price rises, as the number of BTC decreases.
8. Secure currency
The US dollar is considered the most reliable currency in the world because it has support from the US government. Bitcoin has become such a currency for countries like Zimbabwe or Venezuela, where citizens do not trust the state system. This improves the reputation of cryptocurrency, more and more people invest in it.
All in all, if Bitcoin is not a bubble, it has to grow further. There are a huge number of factors that contribute to its popularization and wide adoption. Even if BTC doesn’t reach $50,000 in a year, it’s certainly an investment that makes sense!