- Twitter user Crypto InfoBase asked the online community about the realistic max price of Bitcoin.
- Changpeng Zhao, Ryan Selkis, Trace Mayer, and Galaxy gave their thoughts, supported with data.
The changes that Bitcoin has gone through this year have been impressive, as the token has seen gains that have taken it above the $8,000 price level. However, the continued profits that investors will make entirely depends on how much more the crypto asset grows. A recent tweet discussed the idea of a “maximum reasonable price that Bitcoin can reach in the reasonable future,” which gained a lot of attention.
What maximum reasonable price of bitcoin do you see in the foreseeable future? @VitalikButerin @novogratz @cz_binance @iamjosephyoung @brian_armstrong @ErikVoorhees @fundstrat @ArminVanBitcoin @officialmcafee @elonmusk @twobitidiot @ and the whole community #bitcoin #btc
— CryptoInfoBase (@Crypto_InfoBase) May 25, 2019
In the tweet, the user attached many notable figures in the crypto world to the question, including Vitalik Buterin, Mike Novogratz, Brian Armstrong, John McAfee, and Elon Musk, among others. Changpeng Zhao, the CEO of Binance and one of the figures tagged in the tweet, commented on the question, saying that Bitcoin does not have a “max price.”
There is no such a thing as Max price for $btc.
— CZ Binance (@cz_binance) May 26, 2019
However, a user further asked Zhao meant a possibly infinite price for Bitcoin, or if he meant that there could be goods and services that have Bitcoin as their price when “it won’t make sense to correlate it with USD.”
Do you mean potentially infinitely high price of BTC or that in the near future goods and services will be priced in BTC and it won’t make sense to correlate it with USD?
— CryptoInfoBase (@Crypto_InfoBase) May 26, 2019
Zhao replied by saying simply that fiat does not have maximum inflation.
There is no such thing as max inflation for fiat.
— CZ Binance (@cz_binance) May 26, 2019
However, founder Ryan Selkis of Messari differed in his opinion, saying that passing $250,000 in value would cause the reserve status of USD to “be in jeopardy.”
After $250k / BTC the dollar’s reserve status will be in jeopardy, so all bets are off.
— Ryan Selkis (@twobitidiot) May 26, 2019
Trace Mayer, who was an early public Bitcoin investor around 2010, spoke out on Twitter as well, saying that it is entirely realistic that Bitcoin will end up seeing a $100,000 to $250,000 price tag.
https://t.co/h8CL6BchVQ$gold bugs should understand stock to flow, right @saifedean @julianhosp? Always enough $BTC; just price it. Crypto-❄️ now spring. Halving <1yr & impossible price in early bc tx fees non-elastic. Next bull market will blow your hair back. $100-250k.
— Trace Mayer (@TraceMayer) May 25, 2019
Mayer cites plenty of data in his prediction, specifically focusing on the stock to flow (SF) ratio, which was made popular by the author of The Bitcoin Standard – Saifedean Ammous. During the book, Ammous bring attention to the crypto industry, which has been linked to valuing “hard monies,” like Bitcoin and gold. All the ratio details are the ratio between the above ground supply of an asset and the amount being issued or created annually.
This information is the most likely data to be able to predict exactly what is going to happen with the market at this point. There is a major correlation between SF and the price of the asset. Even a marginal increase in SF could mean a major boost in the price. According to a report from Ethereum World News, the current SF for Bitcoin is about 25, which means that its value is on par with silver right now. Still, if the path continues at the current rate, the SF will raise to 50, which would put it close to the value of gold.
In the model that Mayer puts out there, Bitcoin’s market capitalization would need to reach $1 trillion to be worth $55,000 per BTC after the 2020 halving event. Even though $250,000 is a little further away, it is entirely possible that Bitcoin will reach this number by the next halving.
An analyst for Ethereum World News, Galaxy, says that the above chart is much like the environment when Bitcoin had a rally back in the end of 2015. Anyone in the market remembers how this path preceded a 6,500% price surge in just two years. The market is young enough to still be determining what is considered a trend, but history repeating itself with the same success would mean that Bitcoin would rise by over $333,000 by the end of 2021.
At the time of writing, Bitcoin is presently priced at $8,720.43, rising by 8.65% in the last 24 hours. The current market cap sits at $154.57 billion.
- Source: First Appeared Here
- Published Time: 2019-05-27 17:18:07
The views and opinions expressed in the article Binance CEO, Messari Founder Weigh in on Bitcoin’s Max Future Price, Reaching the Value of Gold do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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