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7. Oktober 2020

Bloomberg: Bitcoin ‚has a tendency to add zeros to its price‘.

Bloomberg analysts believe Bitcoin is headed for $100,000, but this growth could take a long time.

In his latest crypto currency newsletter, Bloomberg noted that Bitcoin (BTC) „has a tendency to add zeros to its price“, pointing out that the value of the asset has increased from $1,000 to $10,000 in less than four years.

The maturation may have slowed this trend down a bit, but according to Bloomberg it has not yet completely stopped. Analysts believe that such a price increase could occur again, but probably not in the short term:

„If the cryptocurrency will repeat past increases, given the level of maturation it will take about twice as long to add another zero to the price. Therefore, Bitcoin could reach $100,000 in 2025“.

Although this prediction may seem overly bold, it is actually a conservative prediction compared to the claims of some important names in the industry. For example, the PlanB analyst has stated that Bitcoin continues to move in the Stock-to-Flow model he designed: in his opinion, Bitcoin’s price will reach $288,000 by 2024!

In addition to historical trends, Bloomberg explains that fundamental supply and demand factors also suggest a future rise of Bitcoin. About 90% of the total monetary supply has already been extracted, while institutional demand continues to grow: „The Grayscale Bitcoin Trust (GBTC) has shares equivalent to almost BTC 500,000“.

Last month, Bloomberg crypto analyst Mike McGlone said that the „right price“ for Bitcoin is currently around $15,000:

„Bitcoin’s hash rate continues to grow and has recently reached new highs. The number of active addresses is also increasing. One of the most important parameters for adoption, the monthly average of active addresses, indicates a price close to $15,000, if measured on an autoscale basis from 2017 to date“.

According to Kosala Hemachandra, founder and CEO of the MyEtherWallet wallet, most of the potential solutions to DeFi’s scalability problem risk compromising its decentralized nature.

Interviewed by Cointelegraph, Hemachandra said:

„If we consider only fully decentralized blockchain, there is none of them that scale well enough to support all these transactions. From this point of view, Ethereum is the best solution we have.

#Bitcoin