The most recent prediction, released by a cryptographic analyst known in the medium as Plan B, suggests that the Bitcoin price could reach up to US$55,000 at some point between the year 2020 and 2021
Bitcoin’s growth despite its volatility
Undoubtedly Bitcoin is the most revolutionary digital product of the decade. A creation that has transformed completely the way we see economy and money management, that always has had inequity and unjust distribution of wealth.
Bitcoin is the mother of all cryptocurrencies, and it has earned that title, like all the others that have emerged after it that are still very far from reaching the growth and acceptance it has, not only by those who still don’t appreciate the value of the digital economy but the crypto-ecosystem itself.
The fluctuation of a crypto-asset price is a common feature, that’s why Bitcoin can be considered as too volatile as it has passed from being at the top, reaching a value of US$20,000 at the end of 2017, to descend to US$2,000 at the beginning of 2019. However, despite this, it continues to be very attractive for digital investors.
The predictions that the experts have declared about Bitcoin have been really close to reality, and, although it seems impossible, these are the most influential opinions for the active members of the bitcoin community.
The most recent prediction, released by a cryptographic analyst known in the medium as Plan B suggests that the Bitcoin price could reach up to US$55,000 at some point between the year 2020 and 2021. Through a new prediction method that analyses the potential impact of Bitcoin’s next halving, which includes the halving of the reward granted to miners for reaching the blocks, it is estimated that slowing down the production of Bitcoins, limited to 21 million BTC, will make the price increase considerably.
The projection developed by the creators of Bitcoin since its inception implies the reduction of the BTC issuing to half, as the limit amount gets closer, a reality that supports the prediction made by Plan B.
And although Bitcoin can’t reach the technological capacity that the subsequent altcoins have, it still possesses qualities that no other crypto-asset could have, as it was created in a scenario and within an unrepeatable context, a condition that allows it to be the predecessor of all cryptocurrencies that have emerged and can be created. This is one of the reasons why Bitcoin has value, along with the fact of being a scarce asset.
The Bitcoiner «Plan B» has used the stock-flow relationship system that’s used in the prediction system for the valuation of precious metals in order to carry out the projection of the Bitcoin price, a system that compares existing stocks with the flow. According to this analysis, the next halving of the BTC issuing that is scheduled for May of 2020 will probably locate the Bitcoin flow-to-flow valuation very close to that of the gold, a hypothesis that implies greater shortage, the value of an asset it directly boosted.
The Bitcoin halving, that also reduces the block reward that the miners receive, is projected to be in the middle of May of 2020. This suggests a market value of US$1 billion, and a price of US$55,000 for BTC. These halvings in the issuing of BTC have been made in different stages of the history of this cryptocurrency, a readjustment in mining that comes every four years approximately, and have always generated a positive impact in Bitcoin’s behavior.
According to this prediction and as Bitcoin is probably one of the most scarce crypto-assets around the world, thanks to its finite and determinate existence since its inception, in comparison with other assets as gold or silver, the SF analysis used to provide this prediction could be much more accurate than what anyone may think, as it proposes a thesis that gains more value if we keep in mind that around 36% of Bitcoins have been lost forever.
After every“halving”, Bitcoin becomes in an ever-more scarce asset, for which an increase in its value is expected, such as what has occurred in prior occasions related to these events, is one more reason why digital investors are in a hurry to make investments right now, for which BTC is barely starting its peak.
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