How much will bitcoin cost? This question is making all crypto investor wonder. Here are the most astounding forecasts.
Last year was significant for crypto currency. In just 12 months, their total market capitalization increased by almost $600 billion, or by 3300%. This likely was the fastest growth of one asset class in the history of financial markets.
One of the leaders of growth was the most popular cryptocurrency of the world: bitcoin (EXANTE: Bitcoin). Although last year its price took a jump "only" by 1364%, (not so much compared to some altcoins) over the past eight years its value has increased from $0.01 to $ 8500 per coin. If you invested $1000 in bitcoins in March 2010 (on conditions that you would have found a person ready to sell such a quantity of cryptocurrency), now you would be a billionaire.
Lot of investors are considering bitcoin and the underlying blockchain as a revolution in the financial and technological spheres. Bitcoin became the first digital currency to be used for investment, and its blockchain allowed to users to. make payments without using traditional banking networks.
Limited supply has also encouraged the rising cost of bitcoin – it will be issued only 21 million coins.
At the moment, bitcoin is striving to make the list of the most popular payment instruments with the number of traders and stores accepting BTC is higher than of any other cryptocurrency.
Also, it is the most popular currency for making trading pairs – a lot of alternative crypto currencies can be bought only for bitcoins.
The status as a first mover and the advantages it brings, mentioned above, lead to the fact that some Wall Street analysts are optimistic in their forecasts of the potential of the world's most popular cryptocurrency. How optimistic? Let's take a look at the most sounding forecasts.
1. John McAfee: $ 1,000,000 by 2020
The most positive forecast comes from John McAfee, former CEO and founder of the McAfee anti-virus company. Several years ago, McAfee said that in 2017, bitcoin would grow up to $5000 and up to $500,000 in 2020. However, after the crypto currency jumped to $20,000 last year, McAfee raised his forecast to $1,000, 000. He is convinced that the relative deficit alongside its growing popularity will lead to a significant price increase of bitcoin in the next two years.
2. John Pfeffer: $700,000 (no time frame)
Last month at the annual conference, Sohn Investment in New York, John Pfeffer who is a partner at Pfeffer Capital explained why bitcoin could potentially rise to $700,000 per coin. His view is based on two suppositions:
- Bitcoin will replace gold as it is much easier to keep the crypto currency
- Bitcoin will be included into the reserves of the largest central banks.
3. Jeremy Liew and Peter Smith project: $500,000 by 2030
Jeremy Liew, the first venture capitalist who supported Snap, and Peter Smith, CEO of Blockchain, believe that by 2030, bitcoin will rise to $500,000. Their views are based on the idea that further development of mobile networks will be fueled by the number of non-cash settlements and increase the popularity of bitcoin. Liew and Smith suppose that someday bitcoin will be responsible for half of all noncash settlements, and the number of Bitcoin users will increase to 400 million people.
4. Tim Draper: $250 000 by 2022
Last month venture capitalist Tim Draper shared his forecasts. He believes that by 2022, the price of the cryptocurrency may grow to reach $250,000. His forecast may seem incredible, but Draper still has accurately predicted the bitcoin cost. In 2014, when the virtual currencycost $320, he said that by 2017, its price will rise to the value of $ 10,000 (which really happened).
5. Fundstrat: $ 64,000 by 2019
Perhaps the highest short-term forecast comes from the independent research company Fundstrat. According to its forecasts, one bitcoin will cost about $36,000 by the end of 2019, thereby during this period the cryptocurrency may reach $64,000. According to Sam Doctor, the company's head of research, the prices growth will be stipulated by the volume of production outputs. Fundstrat is convinced that the main bitcoin sellers are miners. In their view, the cryptocurrency has very strong support (they are not interested in prices when the mining will be loss making), and the cryptocurrency simply cannot fall below a certain critical level.
By Yana Sheremeteva