Earlier this year, John McAfee, the world’s pioneer in digital security, famously (and controversially) predicted Bitcoin’s price to reach a million USD per token by the end of 2020. This forecast looks very dubious at a time in which Bitcoin is struggling to stay over 5,000 USD, let alone 10,000. So how can you make sense of this in the current crypto climate? Let’s try and find out.
In this article, we will take the million dollar predictions seriously, look at current and past data and explain to you why it’s actually possible for BTC to reach the million dollar mark, even if it doesn’t look very probable as things stand right now.
The token’s growth would need to be small but exponential for it to reach the million mark by December 2020. More specifically, it should grow at 0.048% daily. The thing is: Bitcoin has had that kind of growth for most of its existence.
We’ll take this May as a reference point. On that month, the price was at $9,000, and at that moment the prediction curved fitted perfectly with the coin’s market performance. And before May the actual price outperformed the exponential prediction curve seriously. Then it started to go down, and it’s been way away from the expectations ever since.
For BTC to be back on track with McAfee prediction, it should be at $35,000 in three months, and break the $100,000 barrier by next September. It doesn’t look like the most plausible way for the market to develop. But let’s remember the past.
There was a time in which it seemed impossible for Bitcoin to reach the value of a single dollar. But it happened. Then the new psychological mark became 10.00 USD, and it also happened.
Then in time, it reached 100, 1000, 10,000 and got as high as 17,000. Each of those prices was considered to be an impossible milestone at some point in the past, and they all happened anyway. And the same thing happened every time: every Bitcoin aficionado ended up wishing they would have entered the market earlier.
Bitcoin has shown tremendous resilience. It’s had four serious bear runs over the last ten years, and it’s come back with a vengeance reaching unsuspected heights every time.
You also have to take into account that the crypto market is still in diapers. It’s yet to mature. Adoption in the mainstream is happening all over the world but it’s not high enough for the market to respond to real-world usability and economic principles, but it’s still driven by speculative pressure. This will happen as the market matures and it will change the game not only for Bitcoin but everybody as it will drive demand and market value up.
So, will BTC surpass the million mark by December 2020? We think it will. But we are not your financial advisors, so you should do your own research and homework so you can decide correctly if this is a good time to enter the market or hodl Bitcoins you already own. Just remember that this is a market in which the rational and patient players will win big, and speculators that take gut decisions will lose heavily. Which kind would you like to be?
For real-time trade alerts and a daily breakdown of the crypto markets, sign up for Elite membership!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image Courtesy of Pixabay.
The post 2020: The year Bitcoin reaches a million dollars appeared first on Global Coin Report.
Read more at https://globalcoinreport.com/bitcoin-2020-million-dollar-forecast-evaluation/
Globalcoinreport.com/ is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
