Have you guys seen this tweet?
Is he insane or can we actually see BTC rise to $1M by 2020?
I personally tend to think it's quite unlikely due to known bitcoin limitations and the amount of people already invested but i will be happy to hear the alternative opinions.
Your thoughts?
It's not impossible, but HIGHLY unlikely. Let's look at some facts:
Bitcoin's supply will be approximately 18 million in 2020.
If Bitcoin's price is $1,000,000 per coin, Bitcoin's market cap would be $18 Trillion.
The global GDP will be around $93.5 Trillion in 2020, according to
Statistica.
That means that almost 20% of the global GDP will be put into Bitcoin. You see this happening anytime soon? I don't.
It's likely that a
cryptocurrency will be used worldwide, by everyone. Will it be Bitcoin? Probably not.
Bitcoin is popular right now, because if you say "blockchain", everyone immediately says "bitcoin" and not "Could provide some significant advantages for the survival of our species if we were to integrate it in our future technology". Why? Because the vast majority of the human race isn't very intelligent.
People want to make some quick profits. People aren't investing in Bitcoin because they have studied the Bitcoin technology for multiple years and have come to the conclusion that it is a very useful technology. They are investing in Bitcoin because they think it can give them some quick profits, without thinking very well about it.
Most people don't want to hear it, but Bitcoin is in some sort of a bubble now, but it's not really like the bubbles that we've experienced in the past, like the
Tulip Mania. This bubble is gonna collapse, but no one knows when. It's probably gonna last a couple more years until it's collapsing. In these years, it could break the 1-milliondollar-milestone.
Bitcoin's current value is not very accurate. It's not that widely used that it's worth $10,000 per Bitcoin. Bitcoin has to undergo some serious renovations to fix issues like Transaction Fees & Durations, or we simply switch to an other cryptocurrency. I think the latter will occur, which will turn Bitcoin into a "Collector's Item", as it's the original. No one knows what that collector's item will be worth, but I'd recommend waiting a couple decades before selling your's, so a lot of Bitcoins have been lost, never to be found again.
Anyways, he's either insane or he is trying to trick people into buying more Bitcoin & Holding them for longer, so he can make more money by trading it.
But who knows... Maybe Bitcoin actually reaches 20% of our global GDP by 2020... It's all possible! That's the magical world of Cryptocurrencies!
UPDATE1: New models suggest that the US dollar might cope with serious inflation. When the US dollar loses 50% of its value, Bitcoin automatically grows 100% in its value compared to USD. Inflation might just do it as well
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