Bitcoin Price Target Set At Five Times Prior High
Bitcoin peaked near $20,000 in late 2017 and hasn’t come close to reclaiming its highs since then. But give it some time, and the digital currency will reclaim its all-time highs and then increase in value five-fold to $100,000, according to News Blockchain.
Is this bold prediction based on a pipe dream or fantasy? No. The case for bitcoin to soar to the six-digit mark isbased on expert logic.
Why You Need To Listen To News Blockchain
Anyone and everyone
with a Twitter account, a few dollars to spend on an
attention-grabbing website domain, can gain an audience and declare
themselves to be a digital currency expert.
The process of
sifting through all the noise and finding information on digital
currencies is difficult enough. News Blockchain certainly isn’t a
fly-by-night operation known for releasing click-bait titles to
maximize their ad revenue or Google rankings. Quite the opposite, the
people powering News Blockchain is composed of a team of experienced
journalists who dedicate themselves to the crypto universe.
News Blockchain’s
team can be found at all the most relevant events and conferences to
deliver its readers nothing but the most relevant content. The
website caters to experts, professional traders, developers, and
anyone who wants to learn about the crypto universe to become an
expert themselves.
More important than News Blockchain’s ability to provide expert knowledge is its expertise at doing so at high-speed. As is often the case, today’s breaking news will become “old news” tomorrow.
Go Big Or Go Home, But Be Ready To Defend
Anyone can throw out
a big and bold bitcoin price prediction, be it $20,000, $50,000 or
even $100,000. But any price target is merely a number on paper
without compelling reasons that are strong enough to convince even
the biggest doubters.
News Blockchain
doesn’t disappoint and offers three reasons to justify a surge in
bitcoin’s value to $100,000.
It takes a keen eye
to recognize a bitcoin pattern playing out in front of our own eyes.
Every four years, bitcoin experiences a“halving”
event and in the four years that divide two halving
events, bitcoin passes through an “expansion-peak-recession-trough
cycle.”
As if on cue, from
2009 to 2012, 2013 to 2016, and 2017 to 2020, bitcoin rose to its
peak, falls down hard, recovered roughly to the mid-point of the
previous peak before the next halving event and then rose to its next
peak.
Here is a
quantitative summary of the key figures:
Peak 1 at $32 and
halving (2012) at $12.5, or 39% of prior peak.
Peak 2 at $1,179 and
halving (2016) at $665, or 56.5% of prior peak.
Peak 3 at $19,764
and halving (2020) at $8,977, or 45.5% of prior peak.
Taking a closer look
at these figures highlights another trend few others have noticed.
The ratio of Peak 1
to Peak 0 (50 cents in 2010) is 32/0.5 = 64.
The ratio of Peak 2
to Peak 1 is 1,178/32 = 36.81.
The ratio of Peak 3
to Peak 2 is 19,764/1,178 = 16.77.
Each new ratio is roughly one half of the previous one. This implies the next peak for bitcoin could be 19,764 times 8, or $158,112.
What If Bitcoin Was A Stock?
Bitcoin isn’t a
stock and has no similar characteristics with equity representing
ownership of a corporation. But what if bitcoin grows like a stock?
Many stocks can move higher by 90% or more a year with minimal
justification. Heck, a company like Tesla cannotch
that kind of gains in a few weeks.
The stock market is one giant bubble and company valuations are too high. Meanwhile, bitcoin offers a much more compelling outlook that creates the potential for further growth.
Bitcoin Has Legitimacy
Finally, bitcoin is
no longer an asset that exists solely in the digital universe.
Instead, bitcoin futures trade alongside other commodities on the
Chicago Mercantile Exchange. Institutional investors are taking a
bigger interest in bitcoin and the broader cryptocurrency industry.
Bitcoin is setting
the very early stages to become not only an alternative asset for
investors’ portfolios but a reserve currency that rivals the U.S.
dollar or the euro.
