CitiBank Predicts $415,000 Bitcoin in 2021. Here’s Why…
Tom Fitzpatrick is the Managing Director of Citibank. He is the man suggesting that Bitcoin will be worth $415,000 Canadian by December 2021. It’s certainly a bold prediction as most experts, even those who are super bullish on the price, are predicting no more than $100,000 Bitcoin by the end of 2021.
Why A $415,000 Bitcoin?
Outlandish predictions of what will happen to Bitcoin’s price next are always coming out of the woodwork, especially when it makes a big move up. There are a number of ways to evaluate Bitcoin. Some look at the famous stock-to-flow model which we’ve covered here many times at Netcoins. Others point to the number of transactions in the profit, which currently exceeds 93%. Investors can also look at the flow of institutional money coming into the market, halving events or macro events like the coronavirus of the broader economy for their reasoning. Fitzpatrick’s reasoning is a little bit different.
The History of Gold
He points to the history of gold becoming the standard for how global markets would do business. The Bretton Woods Agreement signed in 1944 replaced gold as the standard form of trade and made the American dollar a global currency. Industrialization and a hunger for other currencies led to a gold rush in the 1970s and then President Richard Nixon moved the country away from gold thereafter to create the system the world knows today.
Explaining Fitzpatrick’s Prediction
Fitzpatrick believes in a $415,000 Canadian Bitcoin largely because of the bullish run that occurred from 2011 to 2013 when the price went up a whopping 555 times. He believes that a similar cycle is just beginning and that the price will burst through 2017 highs. Not only will the scarcity of bitcoin available increase dramatically according to Fitzpatrick, the price of gold will also skyrocket due to the overprinting of money as governments continue to shut down economies in an attempt to deal with the coronavirus.
Buy Bitcoin at a Cryptocurrency Exchange in Canada
As governments, major banks and crypto enthusiasts continue to see the writing on the wall for the greater economy, there’s probably no better time than now to invest in bitcoin and other cryptocurrencies. Register for a free account at Netcoins.ca and get started today.
Writer, content marketing at Netcoins.