John McAfee predicts a BTC price of one million USD in the next few years. These and other forecasts are causing a bullish mood, as Antoni Trenchev also said.
Co-founder and managing partner of crypto-lending platform Nexo says Bitcoin could reach $50,000 or more this year – a 580% increase from its current price of $7,391. In a recent interview on Bloomberg TV, Antoni Trenchev says his team believes that the halving, which is scheduled to take place in about four months, will be the catalyst.
I think we could very easily see Bitcoin rise to $50,000 by the end of this year. Our analysts at Nexo are looking at the numbers and doing extensive research. And it’s just one hell of a ride.
The halving is imminent because the reward for the miners is going down. Last time that happened, Bitcoin went up 4,000%. And it was an incredible gain. It’s out of all proportion to the overall market. It provides systematic, asymmetric returns.
Trenchev says he believes Bitcoin’s performance has changed in recent years. Instead of being the new form of cash, he says that BTC is evolving as a digital form of gold.
The original idea was that we would pay for coffee with Bitcoin, but obviously that hasn’t happened. I think the narrative, which is much more compelling now, is that Bitcoin is the new gold. And we see confirmation, like the turbulence this morning, that Bitcoin is on par with gold. And if Bitcoin is the new gold and it only reaches 10% of the total market cap of gold, which is 8 trillion or 9 trillion dollars, then Bitcoin will be at 50,000 dollars.
Gold proponent and Bitcoin critic Peter Schiff says that the leading crypto currency has no chance of competing with gold as a safe haven, despite the increase in both assets on Friday after President Trump’s missile attack in Iran.
Increased geopolitical risks have caused both gold and bitcoin to move higher, but for different reasons. Gold is bought by investors as a safe haven. Bitcoin is being bought by speculators who are betting that investors will buy it as a safe haven.
A recent report by Charles Schwab found that the millennials are the primary demographic interest in digital assets. He found that Millennials is choosing to buy Grayscale’s Bitcoin Trust, which is fully backed by BTC, rather than shares in Microsoft, Walt Disney, Netflix or Warren Buffett’s Berkshire Hathaway. These developments show that Bitcoin is particularly popular among young people. It remains to be seen in which direction Bitcoin will develop.