By mid 2018, Bitcoin is may reach $6000 per 1BTC. This is what Tom Lee, who is the founder of Fundstat, thinks on the matter. According to the respected analyst, the chances of Bitcoin reaching this $6K threshold is pretty high right now. Yet, he assumes that this will not be the limit and the world’s first cryptocurrency will break about the $6K threshold some time later.
While other experts question his prediction, Mr. Lee assumes that this will become possible thanks to a number of factors. First of all, it’s about the speed of at which information is spreading over the Internet these days. Over time, more and more Internet users will be convinced that Bitcoin is a really good alternative when it comes to savings or payment means.
Going Bullish
The analyst thinks that by 2022, the cost of the “digital gold” (as he names it) may reach as much as $25 000 per 1BTC! Wow, that’s a brave prediction! It’s interesting to note that his prediction about the future of Bitcoin is not the most optimistic one out there. According to Dennis Porto, a Harvard academician and a Bitcoin investor, expects 1BTC to cost as much as $100 000 somewhere around the year of 2021. He back his prediction by the supposition that Bitcoin’s trend is subject to Moore’s law. To be more specific, the scientist explains that ever since Bitcoin came into existence, it has been doubling up in value every 8 months or so. Being subject to Moore’s law is seen by the scientist as the key reason why the trend is going up exponentially.
For those of you who don’t know, initially Moore’s law relates to the amount of transistors in the system. While being interviewed by Business Insider, Mr. Porto explained that this law could be applied to any digital technology. So, his calculations predict how trend is going to develop over the next few years.
According to his calculations, if the same market tendency persists over the next few years, by February 2021 the price will already have reached $100K. Mr. Porto assumes that the very fact of Bitcoin being subject to Moore’s law has created exceptional investment opportunities for everyone willing to invest their money profitably.
By the way, Tomas Lee assumes that more and more institutional investors from all over the world are getting increasingly interested in Bitcoin, which is another major reason why Bitcoin is likely to go up in value over time. On top of that, digital currencies are being introduced to the conventional finance world.
Take New York-based firm LedgerX as an example. The company is already offering their clients an exclusive opportunity – the opportunity to trade Bitcoin derivatives.
The founder of Fundstrat is convinced that central banks all over the world will have to change their minds about digital currency when Bitcoin’s market cap reaches $500 billion somewhere in the near future. This is backed by Metcalfe’s law, which reads that “the value of a telecommunications network is proportional to the square of the number of connected users of the system”. He expects the number of Bitcoin users to grow by 50% by 2018.
Still, the analyst recommends that traders should be cautious when making short-term trades. The thing is that Bitcoin is currently overbought, which may cause volatility hikes further down the road.
Optimal Price to Buy Bitcoin
According to CNBC analysts, the most optimal price to start Loading up on Bitcoins is somewhere around $3600. This is the price recommended for buying Bitcoins since this is the expected bottom for the forthcoming market retracement.
According to Brian Kelly, who is the host of “Fast Money”, the price of Bitcoin follows the so-called ABC pattern. According to Coinmarketcap, Bitcoin set the previous high at $4478 and then retraced back to $4000. The next retracement is going to bring the price down to $3600. Mr. Kelly told the audience that he was still holding the Bitcoin trade and was going to buy some more around $3600.
Are Bitcoin Forecasts Reliable?
According to Masterforex-V Academy, Bitcoin forecasts are getting more and more diverse. The thing is, it’s getting harder for various experts to predict Bitcoin’s behavior. On the one hand, institutional investors have been joining the market over the last few months, not to mention the confirmation of SegWit. On the other hand, Bitcoin Cash may have a negative impact on Bitcoin, especially as the former has gained more than 75% since being launched.
Anyway, some of the most respected cryptocurrency analysts are confirming their forecasts and expecting Bitcoin to skyrocket to somewhere from $5000 to $500 000. However, we still recommend you against blindly investing in any asset, especially when it comes to ICOs. Before joining another ICO, think twice and double-check everything to make sure that you know what you are really doing.
