The recent recovery in Bitcoin’s price has become the topic of many “bullish” conversations.
One could say that the public is starting to restore its faith once again, but is still hesitant when it comes to buying the coin as a long term investment.
And, while I am not one to make bold claims for the future, especially when it comes to Bitcoin price predictions, I do understand the popular cryptocurrency better than many of my peers.
In fact, it was only a few months ago that family and friends persuaded me to sell all my holdings at a low 3200$ per BTC, saying that the trend is over and the “worthless” coin is going to zero.
I tried to explain to them why this was not going to happen, but they chose not to listen, saying that I will regret my choice.
The same people are now buying Bitcoin in bulk at the 11.000$-12.000$ price range. The difference? Well, they finally start to understand what Bitcoin is and how it works.
For that reason, before giving you my solid price prediction, I will attempt to educate you as to why I believe in the future of Bitcoin and why I believe its price is expected to grow significantly.
I will also direct you to a few great resources that have lowered my HODLERs anxiety and are guaranteed to help you with your buying decision.
On top of that, we collected experts opinions from financial analysts, venture capitalists and crypto veterans to give you a better idea about where the price is heading in the next few years.
Why you should learn more about Bitcoin
The biggest reason that new investors see Bitcoin as a scary and risky investment is simply due to a lack of information.
Truth is, I can’t blame them…
Over the last two years, in an attempt to profit from the growth of the crypto market, many people tried to make money in unethical ways, at the expense of others: phishing, scamming, fake ICOs; you name it!
As such, the average Joe chooses to sit on the sidelines and watch others become wealthy, missing out on the investment opportunity of our century.
I often imagine what Joe (and every “Joe” in this case) would do if he understood Bitcoin’s potential and functionality.
If you, or anyone in your family, are still considering whether or not Bitcoin is a good investment, then this post is exactly what you have been looking for.
By the end of this blog post, you will finally have a better understanding of what Bitcoin is, how it works and why it is the best investment of the century.
So let’s start from the very beginning.
Bitcoin as a solution to a worldwide problem
If you are familiar with the history of bitcoin, you probably know that Satoshi Nakamoto released a whitepaper with a viable solution to a long-standing problem, often referred to as the Byzantine’s General Problem:
The ability to transfer value between two parties without any intermediary, such as a bank or government.
Never, in the history of the world, has it been possible to instantly transfer value over long distances in a completely trustless way. And, with the creation of Bitcoin, there was finally a breakthrough.
The “peer-to-peer” electronic cash system, as Satoshi put it, essentially stands for the network’s ability to transfer value directly from “person-to-person”, without any involvement from third parties.
No government, no banks, and no regulators. The only ones involved in the transfer are the sender and the receiver.
Bitcoin as a digital asset
For new investors, Bitcoin also serves another function – that of a new asset class.
New bitcoins can be mined, just like any other precious metals. In this case, instead of shovels and pickaxes, miners use strong computing power.
Here is the interesting part.
What makes Bitcoin different and stronger than precious metals, is its predetermined schedule.
- There are only 21,000,000 bitcoins available for mining, 17 million of which have already been mined.
- Every four years, the amount of bitcoin rewarded to miners is reduced in half (halved), and the production of new bitcoins is scheduled to end by the year 2140.
Here is an illustration to give you a better idea:
By looking at the scheduled inflation design, we already know for a fact that the scarcity of Bitcoin will increase as time goes by.
On top of that, the coins’ value is not determined or altered by any third parties. It depends solely on supply vs demand, meaning that its price can go as high (or low) as someone is willing to pay for it.
So why are people not buying it up in bulk?
At the time of this writing, new and experienced investors are still uncertain about the coin’s future. The nerve-wracking swings in the coin’s price cannot be handled by everyone.
Just imagine how you would feel if you invested at the latest Bitcoin peak of almost $20.000 per coin, only to see it tumble down to almost $3000 in less than a year’s time. Such volatile investments require a strong stomach an unshakeable faith.
I can’t help but think that being a HODLER over the past year, is probably the most stressful job one could have.
Of course, this should not be the case if you understand the potential of this new, digital asset.
Personally, I sleep great at nights. No HODLER’s anxiety here. The “aha” moment came about half a year ago when I came to a very simple and logical conclusion:
Bitcoin will, eventually, replace gold as the primary store of value.
I came to this conclusion due to two undeniable facts:
- Bitcoin has a fixed supply that will never be altered. On the contrary, while we have a general idea of gold’s scarcity, new methods of mining (such as asteroid mining) could increase its supply and thus decrease its value in time.
- As a peer-to-peer network, Bitcoin is resistant to censorship and regulation. This means that anyone can send unlimited Bitcoin to anyone he wants, without limitations. On the contrary, due to the physical nature of gold, exchanging the asset is harder, which makes it prone to government regulations.
I would strongly recommend you to read the Bullish Case for Bitcoin by Vijay Boyapati to get a thorough understanding as to why Bitcoin outperforms gold as a store of value.
Waiting for the next Bull Market – Cryptos mainstream adoption
Up to this moment, we have experienced several Bull and Bear markets which led to a tendency of looking at the price action to find answers for current market movements.
And while that is not inherently a bad thing to do (since all Bull markets had similarities), it does take investors’ focus away from the big picture, which in this case is the mainstream adoption of Bitcoin as a store of value and a medium of exchange.
The majority of investors are more focused on the coin’s price and marketcap growth, hoping for short-term profit opportunities.
But, when it comes to mainstream adoption, the price should not be the primary point of observation.
If you want to get a better idea of the adoption rates, you can find more answers by looking at the 24-hour trading volume over time.
This metric indicates the total amount of Bitcoin that was traded in a 24-hour window.
Simply by looking at the picture above, one can observe that the overall trading volume in 2019 is much higher than that of 2017, even though the price barely reached half of it’s latest peak.
To give you a better idea of where we are standing right now, consider the following:
- In the month of December 2017, the month of Bitcoin’s all-time high, the 24-hour trading volume reached an average of 11.34 Billion.
- In the month of June 2019, the average 24-hour trading volume of Bitcoin reached 22.97 Billion.
Overall, the increase in volume has more than doubled since Bitcoin’s latest peak. This serves as undeniable proof that, slowly but steadily, more people are introduced to Bitcoin trading (a.k.a. mainstream adoption).
What else needs to happen until the inevitable next bull market?
Here is what I believe needs to happen to finally enter the new bull market everyone has been so patiently waiting for:
Exposure through (social) media
This phase has already started. Numerous celebrities are now promoting Bitcoin (whether in a positive or negative light). Even the president of the United States, Donald Trump, decided to tweet about Bitcoin recently.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
With more media exposure, we will once again experience an increased interest, much like the one we witnessed during 2017.
In fact, we can already see an increase in search popularity for the term “bitcoin”, by looking at Google Trends, :
Eventually, once Bitcoin’s price grows beyond its previous all-time high, we will once again experience a “bitcoin craze” thanks to the increased media attention.
Patience from current investors
If you are currently holding some Bitcoin, you need to realize that you are still very early in the game.
In time, the private sector will accept Bitcoin both as a form of payment (e.g. Retail payments) and as a store of value. Once again, this will become more prevalent when Bitcoin surpasses its previous peak price.
Nations start to accumulate Bitcoin as part of their foreign currency reserves
Currently, due to the coin’s low market cap ($200B), this possibility seems somewhat unlikely. But consider this; As the private sector’s interest increases and the total market comes closer to that of gold, it will simply become too scarce for nations to ignore it. It is at that point that Bitcoin will achieve, as Vijay Boyapati puts it, geopolitical significance.
10/ Very few people correctly anticipate how high the market will go and most will be shocked by the final peak. This is the bull market when #Bitcoin achieves geopolitical significance, so everyone will be watching. The feeding frenzy may be like nothing we’ve ever seen.
— Vijay Boyapati (@real_vijay) June 20, 2019
What do the experts say?
Before concluding this Bitcoin price prediction post, I decided to also quote some expert opinions on the future of Bitcoin.
I will also add some context to try and offer you a more complete image of what the crypto market may look like in the future. So, what do experts think about the future of Bitcoin?
- Anthony Pompliano – $100.000
Anthony Pompliano, also known as Pomp on Twitter, is the co-founder of crypto asset management firm Morgan Creek Digital Assets. He rightfully predicted that Bitcoin would fall to the $3000 area before climbing back up to $10.000.
So, what does Anthony Pompliano think of the short term future? According to him, one bitcoin will be valued at $100,000 before the end of 2021.
- Naeem Aslam – $60.000 to $100.000
Naeem Aslam, Chief Market Analyst at ThinkMarkets, mentioned in a recent interview that, in the next bull market, Bitcoin will slowly climb to the $60.000-$100.000 area.
This, he said, will only happen if Bitcoin remains above its 242 day-average and after it breaks its previous all-time high.
- Max Keiser – $100.000
Max Keiser is an American broadcaster, filmmaker and Bitcoin maximalist. According to him, one of the major factors that will influence the eventual price increase is the move of millenials from gold and other traditional assets towards Bitcoin.
As for his price prediction – Max thinks we will soon surpass $100.000 per BTC.
- John McAffee – $1.000.000
You have probably heard about this one before. John McAffee, founder of McAffee Antivirus and controversial figure in the crypto community has long claimed that Bitcoin is going to hit $1,000,000 before the end of 2020.
No matter how unrealistic this might seem, he has placed an interesting bet if things go sideways.
- Thomas Lee – $40.000
Fundstrat’s Thomas Lee outlined in the latest consensus believes that Bitcoin will hit $40.000 by the end of the year. According to him, the recovery of Bitcoin is inevitable in the long term.
- Mark Yusko – $75.000
Morgan Creek’s CEO Mark Yusko went public stating that, by the end of 2020, Bitcoin will be worth $75.000. In the long term, he believes that the popular cryptocurrency will reach a value of $400,000 per coin.
- Tim Draper – $250.000
Investor and Venture capitalist Tim Draper doubled down on his prediction that Bitcoin will eventually reach a price of $250,000 (before the end of 2022), during a panel discussion at the Web Summit conference of Lisbon on Nov. 6th 2018.
Bitcoin price prediction for the next Bull Market – $100.000
Let me start off by saying that I am not a financial advisor. What is stated in this article is only my personal opinion.
That being said, I (and most of the experts listed above) strongly believe that a $100.000 Bitcoin will, eventually, become a reality. And it will happen even before nations decide to step in the game.
It is likely that, once we reach geopolitical significance, Bitcoin’s value will be higher than we could ever imagine. More on this in a bit.
For now, let’s stay focused on our target: 1 bitcoin = $100.000
With the current market conditions and the events that await us in the upcoming future, when can we expect to see a 6-figure Bitcoin?
My guess is, before the end of 2021. And here is why:
- Based on historical patterns, Bitcoin has always seen a significant value increase in the year following the halving of its mining rewards. In this case, the next halving is expected to occur in 2020.
- With Facebook’s plans to release their very own cryptocurrency, Libra, and the increased interest from the media, Bitcoin will gain more exposure than it has ever had before.
- In time, cryptocurrency exchanges will make it a lot easier for new investors of all backgrounds to enter the market and buy their first cryptocurrency.
- As the daily trading volume keeps increasing, liquidity will increase with it, making it easier for institutional investors to step in the market.
What will happen once Bitcoin reaches the marketcap of Gold?
Slowly but surely, we can expect to see many people turning from Gold to Bitcoin. This will happen due to its decentralized nature, fixed supply and digital form, which makes it easy to transfer.
As this starts to happen, Bitcoin will slowly grow to become a Trillion dollar asset. As such, it will lead to a new high in the coin’s value ($47,619).
And that will be just the beginning. The current marketcap of gold is valued at aproximatelly $7.8 Trillion. This is about 39 times higher than the current marketcap of Bitcoin.
Gold market cap: $7.8 Trillion
Bitcoin market cap: $200 Billion
Gold’s market cap is 39X larger than Bitcoin.
It won’t happen overnight, but Bitcoin is slowly catching up 🔥
— Pomp 🌪 (@APompliano) July 14, 2019
If Bitcoin were to reach (and hopefully exceed) the current valuation of Gold, we will see one Bitcoin being worth at least $380.000.
Can you imagine what your current holdings will be worth if Bitcoin manages to surpass gold’s total market cap?
How to prepare accordingly
While we are waiting for a new bull market, there are three main areas where all investors should improve upon. Mastering those will set you in a favorable place and prepare you to make better decisions:
Learn more about Bitcoin
I would strongly recommend you to take a look at the following resources. These will help you understand how Bitcoin works and keep you informed about the current conditions of the market.
- Read Mastering Bitcoin by Andreas Antonopoulos to get a good introduction of Bitcoin and its functions.
- Read about the History of Bitcoin, to get a better idea of the cryptocurrency’s market cycles.
- Join social media groups such as Crypto Coin Trader (Facebook) and r/btc (Reddit) in order to stay informed with the latest news.
- Join Anthony Pompliano’s Off The Chain Newsletter.
- Read You Don’t Understand Bitcoin Because You Think Money Is Real by Maria Bustillos.
- And, once again, make sure you read the Bullish Case for Bitcoin by Vijay Boyapati.
Practice your patience
This goes hand in hand with having faith. It is a good idea to start by setting a target selling price for your Bitcoin holdings. Then, do not touch them unless your goal is achieved.
This sounds a lot easier than it actually is, since you will often be tempted to sell your coins based on external influences.
Which brings us to the third, and most important point for all new investors.
Develop emotional intelligence
Emotional intelligence is the ability to handle your emotions during situations in which your rational way of thinking is threatened by external influences.
So, what can you do to practice emotional intelligence when it comes to Bitcoin investments? Start by considering the following:
- Try to be mindful and aware of the present moment. If fear arises inside of you, ask yourself where it comes from and why you feel it.
- Before any hastened action, consider whether it is based on logic or external influences. If it is the latter, hold off and revisit the action at a later point in time.
- When facing a decision, think of the long term. Which option will most likely lead to your desired life outcome? Write down the pros and cons of each option and make a decision.
While this article has been inherently positive and somewhat “unrealistic” for those who are not very familiar with Bitcoin, it might be good to remember that Satoshi’s vision for Bitcoin was not simply to replace gold with a better, digital version of it.
What the creator of Bitcoin really saw in Bitcoin was the possibility of it being used as a global currency, eventually becoming the primary payment system for the whole world.
If that would ever happen, Bitcoin’s marketcap would be equal to the value of all the wealth of our world. Such an event would take Bitcoin to unimaginable heights.
Is this a realistic possibility? In my honest opinion, I don’t think so. At least not in our generation.
But it does make a $7.8 Trillion marketcap look like an easy goal to achieve within the next decade.
Which brings us back to our very conservative $100.000 Bitcoin price prediction.
As mentioned above, Bitcoin does not even need to reach geopolitical significance to hit such targets.
All it needs to achieve this goal is an increase in market participation of retail and institutional investors. This, in combination with patience and emotional intelligence from investors, will be enough.
We hope you now understand why a price target of $100.000 is actually a very real possibility.
If you have any questions or other remarks, feel free to leave a comment below.