Bitcoin’s price to hit $100,000 in 10 years, according to the analyst who predicted correctly its actual price.
Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years, according to Saxo Bank analyst Kay Van-Petersen.
If bitcoin’s price would hit $100,000 in 10 years, that means a 3,483 percent rise from its recent record high.
But who is Kay Van-Petersen?
In December, Saxo Bank published its annual report called "Outrageous Predictions" with one of the forecasts calling for bitcoin to hit $2,000 in 2017. At the time the note was published, bitcoin was trading at around $754, so the target price represented a 165 percent rise. Bitcoin hit $2,000 on May 20.
But now, Kay Van-Petersen, the analyst behind the call, is looking long term and sees a big rise ahead for bitcoin.
The theory behind his crazy forecast
Van-Petersen is assuming cryptocurrencies in general – not just bitcoin – will account for 10 percent of the average daily volumes (ADV) of fiat currency trade in 10 years. Ten percent of $5 trillion is $500 billion. This is the ADV that cryptocurrencies could have. Bitcoin will account for 35 percent of that market share, which would that $175 billion of the $500 billion figure, he said. This would mean that $175 billion worth of bitcoin would be traded every day
Also, Van-Petersen then implies that bitcoin's market capitalization would be ten times the average daily volume, giving a figure of $1.75 trillion for the market cap. The current figure is around $37.8 billion, according to data from industry website CoinDesk.
Bitcoin has a limited supply of 21 million which is expected to be reached by the year 2140. In 10 years, the analyst thinks that there will be 17 million bitcoin in circulation, up from the current 16.3 million figure.
If the potential 17 million of bitcoins in supply is divided by the $1.75 trillion market cap estimate, then each bitcoin would be worth just over $100,000.
- Van-Petersen, who owns bitcoin, emphasizes that this is a rough calculation but that his growth predictions could be "conservative" given that in the year 2013 alone, bitcoin's price grew over 5,000 percent. The analyst said that cryptocurrencies will survive in the long run. *
According to the analyst, cryptocurrencies are here to stay.
"There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering."
Information source: CNBC interview with Kay Van-Petersen
I really think ETH will be a top contender due to its more extensive purpose. While the article's scenario could become true I don't think hitting 100k is that easy, even if we are talking about Bitcoin.
We'll see what the future brings and if Kay Van-Petersen predictions will come true.
I agree, ETH is for sure a hot deal right now! Let's see what the future has in store for us.
Nice post! i am new to the cryptocurrency market but i have investments in a few different coins. Wold like for bitcoin to drop a bit so i can get in on it a bit more, i am geard more towards ether atm, just love the many different platforms and smart contracts that can be built on it.
Would it be better to buy bitcoin via a bitcoin exchange or on leverage via a trading platform, buying Bitcoin/USD. Seems like one could control a lot more coin on leverage (1:100 I believe). Obviously there's added risk should it decrease in value. What do you think? thanks!
I personally like to buy it via a bitcoin exchange website. There are just more options for you to choose from. There are advantages and disadvantages for both of them. It's up to you to decide in the end.
Crypto will for sure take over, its just better money.
Dont invest all your coins on sites where you do NOT control your own private keys. (Hard learnt lesson for me).
My thoughts;
https://steemit.com/bitcoin/@znaffe/hard-leant-lesson-in-crypto-do-not-get-blindsighted-by-greed
I just love these crazy projections, just because they could turn out true.
I know... they make you go crazy about the whole trading thing.
I am planing to participate lad
I'm looking forward as well!
Just do it, stop planning. You just need some money, even 100$ will give you some taste of the process. Open an exchange account, load it up and transfer it to your wallet(make one, if you haven't already). Now I did the plan for you. Let's see who puts it into action.
I agree, trading is going quite well right now. I usually trade Monero, STEEM and DASH for fast money but Bitcoin or ETH are a great choice for the long run.
Since it's not controlled by anyone, everything's possible. It cam hit $100,000, it can go down to a $.
I am not so optimistic and here is why. The potential for crypto currency to change the whole concept of financial system is there, no doubt.
But very few see evaluating this potential in terms of the freedom this change could bring. Most just guided by greed and that's why they measure everything in dollar terms.
It's my opinion that this greedy motivation guiding the early adopters will give the opportunity for the elites at the top of the pyramid to morph the movement to their ends and we all will be back to square one.
Another opportunity squandered.
Let's just hope it will continue to expand. It would a shame if it goes down...