$100,000 or Zero? Which Price Target Is Bitcoin More Likely to Hit First?
A growing number of Bitcoin investors believe the price target for the world’s most valuable cryptocurrency is way higher than its current price of approximately $14,500 Canadian. When we refer to a growing number of Bitcoin investors, we’re not just talking about the small-time investor dabbling into crypto for the first time.
Billionaires Tyler and Cameron Winklevoss recently predicted a $500,000 Bitcoin is within reach. Paul Tudor Jones, a famous stock market investor who was once very much bearish on all things crypto now owns some. Venture capitalist and billionaire Tim Draper purchased a large number of bitcoins for several million dollars that went up for auction as a result of the takedown of black-market website Silk Road a few years ago. He’s also one of the largest backers of the altcoin project Tezos.
Don’t think that larger publicly traded companies aren’t getting in on the mix either. MicroStrategy Incorporated and Grayscale Investments have collectively purchased more than 38,000 bitcoins over the last little while.
But apart from institutional investing ramping up in the space, there are many other fundamental reasons Bitcoin is more likely to get to $100,000 as opposed to zero. Scarcity is one of them.
Scarcity Creates Value
Every time 100,000 blocks of Bitcoin transactions are validated by miners, the supply of new bitcoins awarded to the miners cuts in half. This event happens every four years and is referred to as the halving event. The current reward for successfully mining a block is 6.25 BTC, which is down from the 12.5 BTC rewarded prior to the most recent halving event. Add to that there are only 21 million bitcoins that will ever be in existence (with the last Bitcoin expected to enter circulation in the year 2140) and eventually, a single Bitcoin could actually be worth several million dollars.
If you’ve been investing in Bitcoin for a while, odds are you probably already know this and you’re not exactly thinking 120 years into the future. After all, none of us will be around to see that last Bitcoin. But there is reason to be optimistic in a $100,000 Bitcoin becoming a reality in the next 2 to 3 years. It has to do with stock-to-flow ratio, a ratio introduced to the crypto world by anonymous whale investor PlanB.
PlanB posted a poll on Twitter on September 25 were 24,000 people voted and 25% of respondents agreed that Bitcoin will be worth more than $100,000 before the end of 2021. Another 19.5% stated bitcoin will be worth more than $288,000 in short order.
Reasons to speculate on Bitcoin’s meteoric rise in price in the near future are wide-ranging. One investor points out that gold is worth $9 trillion, and that there is no reason the digital version of gold can’t be worth at least $1 trillion. That already puts the price over $100,000 per coin.
Another investor points out that even if Bitcoin is worthless in 10 years, it likely means a competing cryptocurrency will hold a similar valuation in terms of market capitalization, so investors in the space will win anyway.
Does it really matter if Bitcoin gets to $100,000 in the next 15 months? Do you think that is a realistic price target? If so, then with the current price sitting at $14,400 Canadian, buying it now at Netcoins is probably a good call. Decide for yourself.
Written by: Jack Choros
Writer, content marketing at Netcoins.