Could bitcoin hit $100,000 by 2021?
Sr. Fintech Consultant, BTC, Blockchain, Cybersecurity, Artificial Intelligence
writing at Forbes believes the answer to the question could well be a resounding YES! In his article he makes the case for a surge in bitcoin’s value over the next two years and discusses Anthony Pompliano’s bitcoin at $100,000 prediction.
It is true that bitcoin has had a much healthier 2019 compared with its rather miserable 2018. Indeed, it has roughly tripled its price this year. However, as Torpey says, Pompliano thinks, “the party is just getting started.”
Pompliano, who is the Morgan Creek Digital co-founder, was interviewed by Julia Chatterly on CNN when he made his prediction. She asked him how he had arrived at such a figure.
US monetary policy could boost bitcoin
He pointed to current US monetary policy and bitcoin’s upcoming halving event. He said: “Whenever we get to a recessive period or kind of slowing growth, central banks have kind of two tools: They can cut interest rates, which they did yesterday, and they can print money (quantitative easing). And so, when they do both of those things, it usually takes anywhere between 6 to 18 months to feel the effect of those tools, and what it’s going to do is it’s going to coincide with the Bitcoin halving,”
A halving event in Bitcoin is when the amount of Bitcoin that are generated by miners every ten minutes is cut in half, and the scheduled issuance of new Bitcoin is halved roughly every four years. For example, next year the number of new Bitcoin created in each new block will drop from 12.5 to 6.25.
Bitcoin is better than gold
Pompliano also believes that bitcoin has considerable advantages over gold, a topic that has been widely discussed over the last several weeks in particular. He explained it like this: “The difference is, between Bitcoin and gold, with Bitcoin, we know exactly how many is getting created, so 1,800 Bitcoin are going to be created today. The second thing is we know the total supply available, which is 21 million. So, it’s not: Hey I wonder how much is in the ground. We know exactly how much it is, and we can actually go and audit or verify the software code of the system.”
This is not the first time that Pompliano has predicted bitcoin at $100,000; he made the same claim in 2017. However, this time he is not alone in his view. Pantera CEO Dan Morehead has said there’s a “good shot” the Bitcoin price will hit $42,000 by the end of 2019 and as Torpey says, Morehead’s data supporting his prediction “is even more bullish” than Pompliano’s.
Bitcoin owners will no doubt hope that Pompliano turns out to be right; they only have to wait two years to find out.
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