Anyone can make predictions. But there are only a few analysts who can come up with accurate ones. And when those who have that uncanny ability of making correct ones and go on record with them, it’s hard not to take notice, even if the prediction risks causing strong reactions.
Such is the scenario after analyst Kay Van-Petersen of Saxo Bank announced his latest forecast about cryptocurrency bitcoin. According to CNBC, Van-Petersen is predicting that in 10 years, the price of payment network could exceed $100,000 — about 3,600% higher than its latest record high of $2,750.
While it’s easy to call or label Van-Petersen ‘s forecast an outrageous one, the fact is that because it came from the same analyst who correctly called late in 2016 that bitcoin will hit $2,000 in 2017 (which it actually did on May 21, 2017), it can’t simply be dismissed. Especially given the fact that when that previous forecast was made, bitcoin’ price was only in the mid $750 range, which implied a 165% spike towards the $2,000 level.
As outrageous as it may have sounded at the time, bitcoin did in fact kept making higher highs, which made Van-Petersen ‘s call even more remarkable when you consider that during its first year, the cryptocurrency was worth absolutely nothing only to reach the predicted $2,000 target price within the targeted time frame. So while $2,000 is a far cry from $100,000, who’s to say that it’s not possible? After all, anything can happen, right?
Right now, bitcoin supply is a little over 16 million. It is expected to hit a maximum of 21 million by 2040. As Van-Petersen told CNBC: “This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”
The analyst also says that the innovative payment network would account for 35% of the cryptocurrency market share. In terms of dollars, that’s $175 billion of the estimated $500 billion average daily volume (ADV) for cryptocurrency trading, meaning, time will come when $175 billion worth of bitcoin will be traded daily.
If there’s one thing going right now for bitcoin is that it has worldwide accessibility, particularly following news that Japan recently passed legislation allowing the acceptance of bitoin as legal currency helps its cause a lot.
But make no mistake, there are downsides too, of course, the most serious one being the perception that bitcoin is fast becoming the favorite currency of criminals. The recent WannaCry ransomware cyberattack is proof of this — with the hackers asking the owners of their ‘hostaged computers’ to pay ‘ransom’ in the form of bitcoin.
All things considered, we’ve had bitcoin as a new kind of money for seven years now, and demand for it seems to be rising rather than falling. And whether its price continues to increase further or not, there’s one thing we’re sure of — bitcoin holders are hoping Van-Petersen’s $100,000 prediction turns out to be accurate.