Bitcoin price forecast: BTC will reach 700,000 US dollars?
Recently, a large "bitcoin whale" was discovered in the cryptocurrency market. According to reports, Bitcoin whales have just transferred bitcoin worth more than $250 million from a very old bitcoin address. Such large-scale changes may have a huge impact on the value of digital currencies.
However, orders of this nature do not pass the normal trading platform. This will greatly undermine the price of the currency in the market. Therefore, they have taken another approach.
Bitcoin has not yet started a major bullish. Many investors and traders are patiently waiting for the sharp recovery in the encryption market. However, no one knows how big and when the next recovery will be restored.
Hopeful about the future of Bitcoin
The Sohu Investment Conference, held annually in New York, provides a platform for Wall Street hedge fund managers and investors to showcase their stock selection executives. On the occasion of the 23rd anniversary of the conference, a special digital investment currency was recommended on the stage. Some of the most influential market participants have proposed bitcoin price forecasts with astronomical returns.
Market analyst's forecast of bitcoin prices
As a partner of Pfeffer Capital, John Pfeffer predicts that bitcoin prices will rise about 200 times and will reach about $700,000 in the future.
Although Pfeffer does not specify a certain time limit, there are other investors who have done it. Venture capitalist Tim Draper predicts that by 2022, the price target for Bitcoin will reach $250,000. When considering Draper's predictions, Pref's prediction seems to be optimistic.
At the meeting, Pfeffer described Bitcoin as “the first viable alternative to gold.” When we analyzed his logic, it became clear that first he believed that Bitcoin could replace the entire gold disk owned by private investors because Bitcoin is easier to store and protect than a gold plate buried in a garden or placed in a bank's storage box.
Pfeffer assumes that the value of the entire gold plate in the hands of private investors is currently about $16 trillion. He continued to calculate that the number of circulating bitcoins was 18 million, when the cryptocurrency that completely replaced the gold sector occurred. The expected value of Bitcoin is estimated at $90,000, and he gives a 8% chance of forecasting.
Pfeffer hopes that Bitcoin will become the traditional foreign currency of the central bank. Although he knows that Bitcoin cannot completely replace all foreign currencies worth about $12.7 trillion, he hopes to replace a quarter of them. Even if it is hard to imagine, if the value of Bitcoin reaches a level that matches all foreign exchange reserves (including foreign exchange reserves and gold plates), then its value is more than $700,000.
In the past two years, Pfeffer has been investing in cryptocurrencies other than Bitcoin. However, he returned to the era of investing only in Bitcoin. His reason is because other currencies are more complicated than bitcoin.
Pfeffer pointed out that the value of cryptocurrencies depends on its complete economic practice divided by the speed of currency exchange. For example, the value of the token will always be under pressure due to its ongoing exchange rate.
Pfeffer views Bitcoin in the opposite direction. He said: "There is still a way out of this value trap, that is, people want to store their wealth in a crypto asset." At this point, Bitcoin was saved, so it could replace gold as he predicted. (Continuous melting chain)