Bitcoin Bulls Are Back
With the recent action in the crypto markets, Bitcoin (BTC) bulls have returned. Gone are the days when people were calling for the death of this market. In a recent interview with The Street, James Altucher, a prominent venture capitalist and former hedge fund manager, suggested that the ongoing BTC rally has just commenced.
The investor, who rose to prominence in the cryptocurrency space when he became one of Bitcoin’s boosters in 2017, told the financial news outlet that Bitcoin may soon reach seven figures. Altucher, who first made this type of prediction when BTC first crossed above $10,000 in 2017, stated that Bitcoin hitting $1 million is still on the table, here’s why:
The investor states that he estimates there is around $200 trillion worth of fiat monies in the world, while there is only around $200 billion worth of digital assets in circulation. Altucher writes that if Bitcoin manages to secure all of that value, each BTC would have the purchasing power of around $8 million, far higher than current prices, about 1,000x higher. Although this sounds absolutely absurd, the investor states that it’s possible, as Bitcoin and related technologies are purportedly much more efficient and reliable than fiat monies.
Thus, he concluded that $1 million for each Bitcoin is entirely reasonable, but didn’t give a specific deadline for this prediction. Funnily enough, he suggested in 2017 that the cryptocurrency was going to hit $1 million in 2020. Regardless, he isn’t the first to have suggested that Bitcoin will reach such a price point.
$1 Million Club
Per previous reports from Ethereum World News, Jesse Lund, formerly IBM Blockchain’s lead, told Finder that BTC trading at $1,000,000 isn’t exactly off the table. The former IBM executive even quipped that he likes that figure, as each Satoshi would be valued at $0.01 at that point. Fundamentally, he added that a seven-figure valuation would give Bitcoin $20 trillion in network liquidity, making corporate payments on the blockchain a possibility.
More recently, we’ve seen Wences Casares of Xapo, described by many as ‘Patient Zero’ (he spread the Bitcoin bug), make a similar prediction. In a recent blog post, Casares wrote that while he believes that the experiment-esque BTC has a 20% chance of failing, its 10 years of operation, with “60 million and rapidly growing holders,” and the continual use in the real world (movement of $1 billion in value/each day) gives it a good chance of succeeding.
And if it does, the Xapo chief executive noted that each unit of the cryptocurrency could surmount $1 million, all within a decade’s time. This is over 100 times what it is valued at today. With this in mind, he noted that it is nonsensical not to own Bitcoin, calling it a “unique opportunity for a non-material exposure to produce a material outcome.” He added that not owning any of the digital assets may very well be almost “irresponsible.” In conclusion, Casares opines:
In today’s world where every asset seems priced for perfection, it is hard, if not impossible, to find an asset that is so mispriced and where the possible outcomes are so asymmetrical.
Title Image Courtesy of Jason Wong Via Unsplash