To assume the price of Bitcoin one needs to consider the following questions:
Upcoming Bitcoin Halving
According to the rule of Bitcoin halving, which happens roughly once every four years, is going to held in 2020 will be the third one. During halving, the protocol cuts the block reward in half. So, at the time of Bitcoin halving, miners start receiving 50% fewer BTC for verifying transactions. The daily income of miners is currently at 1800 that is going to be reduced to 900 Bitcoins by the upcoming halving. We saw a considerable appreciable in Bitcoin’s price after the previous two halving happened and hopefully this will keep continue.
Thoughts in view of Basic Economics
The increasing combined demand of the BTC in trading volume across the markets has a direct relationship with both demand and price rise. As a result, demand of bitcoin will not be affected by the supply is a positive issue. But economists can say that the unbalanced relationship between supply and demand will lead to increase the price of Bitcoin.
Effect of Inflation
According to assumption, within 2024, the inflation rate of bitcoin can head towards zero and the rate is currently less than U.S. dollar. Known as a ‘’safe haven’’ asset, the price movement of Bitcoin is different than the price movement of consumable goods. So, even in good economic times, Bitcoin has slow, gradual and downward price movements.
Increment in Institutional Trading
Reportedly, every $1B that goes into crypto increases the market cap by $50B where there is currently a bit more than $2Bin crypto. There was around $20B in crypto at the height of the last Bull Run. There is only $20B entering crypto needed this year as each $1B increases the market cap by $50B. It is expected that BAAKT would make the crypto market increase by 5x alone. In order to reach $100K the market cap will have to be about $2 trillion.
Welcome to New technologies
Germany always warmly welcomes new technologies. For example, IOTA has been in partnership with a lot of Tier 1 and Tier 2 companies for payment solutions for the self-driving car. Reputed universities along with major German companies are working together to explore other potential applications of Blockchain in the automotive industry. It is also expected that there might be another wave of buying spree and it would come from the successful adoption of Libra as Facebook recently announced that they would release a major coin with the help of a few companies. On the basis of above discussion and comments from institutional investors and smaller investors, the market can for sure hit $30,000 this year and $200,000 in 2021. On the basis of record, Bitcoin has seen it’s price increasing 400% since 2013.
