5 of the Most Ridiculous Bitcoin Price-Target Forecasts — The Motley Fool

Last year was a true coming-out party for virtual currencies. In just one year’s time, the combined market cap of all digital coins rocketed higher by nearly $600 billion, which works out to more than a 3,300% increase on a percentage basis. It’s perhaps the greatest single-year performance we may ever witness for any asset class.

Bitcoin is leading the cryptocurrency revolution

Leading that charge was the world’s most popular cryptocurrency, Bitcoin. Even though Bitcoin “only” rose in value by 1,364% last year, which would appear subpar relative to its peers, it’s risen from less than $0.01 in March 2010 to a current value of more than $8,500 per coin. That’s not too shabby of a return in just a shade over eight years! In fact, a $1,000 investment in March 2010, assuming you found someone willing to part with that many Bitcoin back then, would have been worth billions of dollars today.

A physical gold bitcoin upright on a table.

Image source: Getty Images.

A good number of cryptocurrency investors view Bitcoin and its underlying blockchain technology — the digital, distributed, and decentralized ledger responsible for recording transactions in a transparent and unchanging manner — as revolutionary. After all, Bitcoin was the very first digital currency to become investable back in 2010, and its blockchain offered a means of moving money from one party to another without using traditional banking networks.

Bitcoin also derives value from the perception that it’s scarce. Protocols limit the total number of Bitcoin that can be mined to 21 million coins.

Nowadays, Bitcoin is aiming to become a primary medium of exchange. There isn’t another digital currency out there accepted by more physical and online merchants than Bitcoin.

It’s also the most commonly paired digital currency when it comes to cryptocurrency investing. In other words, an investor often can’t buy an obscure digital currency without first purchasing Bitcoin and exchanging their Bitcoin for tokens in a smaller cryptocurrency.

It’s this first-to-market advantage of Bitcoin, as well as these other factors noted above, that have some Wall Street analysts and strategists placing some very lofty price targets on the world’s most popular token. How lofty, you ask? Let’s take a look.

A confused young man in a suit scratching the top of his head.

Image source: Getty Images.

The craziest Bitcoin price-target forecasts

While it’s really a game of “take your pick” when it comes to wild Bitcoin price targets, the following five estimates stand out as particularly mind-boggling.

1. John McAfee: $1,000,000 by 2020

The wildest prediction of all comes from John McAfee, the outspoken former CEO of the antivirus company that bears his name. Using a prediction model, McAfee had originally called for Bitcoin to hit $5,000 in 2017, and $500,000 in 2020. However, with Bitcoin blowing past $5,000 last year and briefly eclipsing $20,000 per coin, McAfee revised his target estimate to $1 million. McAfee believes Bitcoin‘s relative scarcity and growing adoption provides a path to considerable appreciation over the next two-plus years. 

2. John Pfeffer: $700,000 (no time frame offered)

Last month, at the annual Sohn Investment Conference in New York, John Pfeffer, a partner at Pfeffer Capital, laid out his case for why Bitcoin could run to $700,000 per coin. Pfeffer’s price target relies on two primary catalysts. First, he assumes that Bitcoin will replace gold, since it’s considerably easier to store and is more secure. Secondly, he opines that Bitcoin could replace some form of reserves at global central banks over time. 

3. Jeremy Liew & Peter Smith: $500,000 by 2030

Jeremy Liew, the first venture capitalist to back Snap, and Peter Smith, the current CEO of Blockchain, together believe that Bitcoin has a shot at hitting $500,000 per coin by 2030. Chief to their thesis is the idea that growing mobile penetration will increase the number of non-cash transactions processed by these devices, driving Bitcoin adoption. Liew and Smith suggest that Bitcoin may one day account for half of all non-cash transactions, with the aggregate Bitcoin user network growing to about 400 million users. 

A rising chart overlaid on a physical gold bitcoin, with a keyboard in the background.

Image source: Getty Images.

4. Tim Draper: $250,000 by 2022

Also revealed last month was the $250,000 price target by 2022 from venture capitalist Tim Draper. Though hitting $250,000 might appear crazy on the surface, Draper has been right before on Bitcoin. When the virtual coin was valued at just $320 in 2014, he predicted $10,000 would be hit in 2017 — which it indeed was. 

5. Fundstrat: $64,000 by 2019

Arguably the loftiest of the shortest-term estimates comes from independent research firm Fundstrat, which has called for an end-of-year $36,000 target for Bitcoin in 2019, with a peak of $64,000 during the year. Driving this increase in price, according to the company’s head of research, Sam…

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