Bitcoin peaked near $20,000 in late 2017 and hasn’t come close to reclaiming its highs since then. But give it some time, and the digital currency will reclaim its all-time highs and then increase in value five-fold to $100,000, according to News Blockchain.
Is this bold prediction based on a pipe dream or fantasy? No. The case for bitcoin to soar to the six-digit mark is based on expert logic.
Why You Need To Listen To News Blockchain
Anyone and everyone with a Twitter account, a few dollars to spend on an attention-grabbing website domain, can gain an audience and declare themselves to be a digital currency expert.
The process of sifting through all the noise and finding information on digital currencies is difficult enough. News Blockchain certainly isn’t a fly-by-night operation known for releasing click-bait titles to maximize their ad revenue or Google rankings. Quite the opposite, the people powering News Blockchain is composed of a team of experienced journalists who dedicate themselves to the crypto universe.
News Blockchain’s team can be found at all the most relevant events and conferences to deliver its readers nothing but the most relevant content. The website caters to experts, professional traders, developers, and anyone who wants to learn about the crypto universe to become an expert themselves.
More important than News Blockchain’s ability to provide expert knowledge is its expertise at doing so at high-speed. As is often the case, today’s breaking news will become “old news” tomorrow.
Go Big Or Go Home, But Be Ready To Defend
Anyone can throw out a big and bold bitcoin price prediction, be it $20,000, $50,000 or even $100,000. But any price target is merely a number on paper without compelling reasons that are strong enough to convince even the biggest doubters.
News Blockchain doesn’t disappoint and offers three reasons to justify a surge in bitcoin’s value to $100,000.
It takes a keen eye to recognize a bitcoin pattern playing out in front of our own eyes. Every four years, bitcoin experiences a“halving” event and in the four years that divide two halving events, bitcoin passes through an “expansion-peak-recession-trough cycle.”
As if on cue, from 2009 to 2012, 2013 to 2016, and 2017 to 2020, bitcoin rose to its peak, falls down hard, recovered roughly to the mid-point of the previous peak before the next halving event and then rose to its next peak.
Here is a quantitative summary of the key figures:
Peak 1 at $32 and halving (2012) at $12.5, or 39% of prior peak.
Peak 2 at $1,179 and halving (2016) at $665, or 56.5% of prior peak.
Peak 3 at $19,764 and halving (2020) at $8,977, or 45.5% of prior peak.
Taking a closer look at these figures highlights another trend few others have noticed.
The ratio of Peak 1 to Peak 0 (50 cents in 2010) is 32/0.5 = 64.
The ratio of Peak 2 to Peak 1 is 1,178/32 = 36.81.
The ratio of Peak 3 to Peak 2 is 19,764/1,178 = 16.77.
Each new ratio is roughly one half of the previous one. This implies the next peak for bitcoin could be 19,764 times 8, or $158,112.
What If Bitcoin Was A Stock?
Bitcoin isn’t a stock and has no similar characteristics with equity representing ownership of a corporation. But what if bitcoin grows like a stock? Many stocks can move higher by 90% or more a year with minimal justification. Heck, a company like Tesla cannotch that kind of gains in a few weeks.
The stock market is one giant bubble and company valuations are too high. Meanwhile, bitcoin offers a much more compelling outlook that creates the potential for further growth.
Bitcoin Has Legitimacy
Finally, bitcoin is no longer an asset that exists solely in the digital universe. Instead, bitcoin futures trade alongside other commodities on the Chicago Mercantile Exchange. Institutional investors are taking a bigger interest in bitcoin and the broader cryptocurrency industry.
Bitcoin is setting the very early stages to become not only an alternative asset for investors’ portfolios but a reserve currency that rivals the U.S. dollar or the euro.