Bitcoin at $ 100k more likely than ever – analysts expect huge profits

Bitcoin’s split-cent rise to over $ 8,000 came as a surprise to most. However, the price of the leading cryptocurrency has long exceeded many of the extreme price predictions. And many believe that he will continue to do so in the future.

For one of the earliest contributors to the Bitcoin project, the late Hal Finney, Bitcoin is striving to “become the dominant payment system in the world”. The computer scientist argued to Satoshi Nakamoto in 2009 that if Bitcoin is successful in this regard, the network will absorb between $ 100 trillion and $ 300 trillion – a rough estimate of total global wealth. 

This would result in Bitcoin priced at $ 10 million. Finney added that the few cents it would cost to mine some Bitcoin today make it a phenomenally good bet.

Recently, crypto market analysts have been looking at Finney’s early speculations again. In response to Finney’s Twitter post, which speaks of a $ 10 million Bitcoin price, blockstream founder Adam Back (@ adam3us) explains: The inflationary pressures of fiat currencies make this sky-high figure much less ridiculous than it is sounds at first. 

Back notes that if USD inflation continues to rise, the dollar may lose purchasing power by as much as 1/10 over the next ten years. Such a devaluation makes a $ 10 million bitcoin much more accessible.

And $100k Bitcoin doesn't seem so far given we already crossed $10k threshold a few times when few expected even $1k some years back and $10k seemed crazy.

— Adam Back (@adam3us) January 11, 2020

According to Back, a $ 100,000 bitcoin is now closer than ever, especially given the fact that the asset has been bouncing around $ 10,000 for so long. Blockstream’s CEO argues that only a few would have expected a $ 1,000 or even a $ 10,000 Bitcoin. Today at $ 100,000, BTC feels like $ 1,000 once – and a $ 1 million is the stuff of fantasy.

Analyst Plan B (@ 100trillionUSD) and Twitter user Steven Smith (@stalcottsmith) agree with Back’s reasoning. Plan B’s belief in Bitcoin’s future is based on two decades of investment experience – and first-hand experience of the effects of quantitative easing. 

Plan B is convinced that ongoing inflation will not only encourage people to buy Bitcoin, but that these seemingly massive prices will become much more accessible thanks to the dollar’s limited purchasing power. Meanwhile, Smith explains that the move from $ 20,000 to $ 100,000 will “knock people off their feet.”

Totally agree. Must admit that I probably would not have this level of confidence (and interest) in bitcoin, if I would not have had 20+ years experience investing $100B AUM and personally seeing the unintended consequences of quantitative easing (QE) and negative interest rates.

— PlanB (@100trillionUSD) January 11, 2020