Bitcoin Bitcoin’s Price Continues to Rise – Analyst Says it’ll Reach $100,000 in...
Kay Van-Petersen, the analyst who predicted the Bitcoin price going up to $2,000 now has another prediction, and this time, it’s even more astonishing. According to his newest prediction, the price of Bitcoin might even reach $100,000 during the next decade. If true, this newest prediction would mark a 3,483% rise.
This analyst’s first prediction was published back in December by Saxo Bank, and his report was even called “Outrageous Predictions.” Back then he said that the price of Bitcoin would go from $754 to $2,000. The report raised quite a few eyebrows, but then it happened, and Bitcoin hit the price on May 20. Now, however, the same analyst sees another big rise for the cryptocurrency.
BITCOIN WILL HIT $100,000
Van-Petersen explains this rise like this. He assumes that cryptocurrencies (including Bitcoin) will account for 10% of their ADV (Average Daily Volumes) of fiat currency trade in the next 10 years. The ADV for the foreign exchange is over $5 trillion at the moment. Now, 10% of $5 trillion is $500 billion, which is the potential ADV for the cryptocurrencies.
Around 35% of the market share is expected to go to Bitcoin, which is around $175 billion from the total $500 billion figure. What that means is that around $175 billion in bitcoin would “change hands” per day.
Van-Petersen’s next suspicion is that the bitcoin’s market capitalization will get to be around 10 times larger than the average daily volume.
With that in mind, the market cap figure goes up to $1.75 trillion. On the other hand, the current figure is ‘only’ $37.8 billion. Bitcoin’s limited supply is around $21 million, and the expectations are that this will be reached by the year 2140. However, when it comes to the next decade, it’s believed by this analyst that around 17 million will be circulating.
And finally, when this potential 17 million is divided by the estimated market cap ($1.75 trillion), then the price of Bitcoin goes somewhere around $100,000 by piece.
CRYPTOCURRENCIES ARE HERE TO STAY
Many, including Van-Petersen himself say that this calculation is pretty rough. His calculations might even be called “conservative,” but he’s sure that Bitcoin and other cryptocurrencies will survive the test of time. He firmly believes that cryptocurrencies aren’t going away and that two or three others will also rise and become the main ones. Bitcoin will remain among them. The analyst also stated that his views are not official views of the Saxo Bank.
WHY DOES BITCOIN HAVE A BAD REPUTATION?
Despite its sudden rise and popularity, Bitcoin isn’t without problems. Most of them, including its bad reputation, come from the fact that it’s often used for illegal activities online. Also, there’s the crash of Mt.Gox that happened in 2014, which was the biggest bitcoin exchange in the world, and many are still waiting for compensation.
This reputation was even confirmed recently, thanks to the WannaCry ransomware attack. The attackers demanded that their victims pay the price of $300 in Bitcoin. Bitcoin was only used because it’s hard to track, but its reputation still took a big hit.
Van-Petersen believes that this industry is young enough to bounce back and improve its methods in time. Better online wallets and similar factors will improve its safety, as well as reputation. Plus, when buying the digital currency becomes easier in wider areas, it’s bound to get even more users.
Many believe that Van-Petersen’s calculations are too simple and that there are many other factors to take into consideration. All that can be done now is to wait and see whether this analyst got it right for the second time too.