Bitcoin price may hit $100,000 in Ten years. The prediction is made by the same analyst who predicted that Bitcoin price will touch $2000 in 2017.
Kay Van-Petersen, an analyst at Saxo Bank predicted the $2000 price level back in December 2016. At that time Bitcoin was trading at around $754, so the target price represented a 165 percent rise. Bitcoin hit $2,000 on May 20. It made it’s all time high around $2700 and is now stable in the range of $2200-$2300. A price correction is still expected.
The analyst now makes a long term prediction and sets a target of $100,000 in Ten years.
“Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years”, according to the analyst at Saxo Bank.
- Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years, according to Saxo Bank analyst Kay Van-Petersen.
- Its market capitalization could grow to $1.75 trillion which would make each Bitcoin worth $100,000.
How will bitcoin will hit $100,000?
Here’s how Van-Petersen, the analyst at Saxo bank came up with his price target in 10 years:
->Van-Petersen is assuming cryptocurrencies and not just Bitcoin will account for Ten percent of the average daily volumes (ADV) of fiat currency trade in next 10 years. Foreign exchange ADV currently stands at just over $5 trillion, according to the Bank for International Settlements.
->Ten percent of $5 trillion is $500 billion. This is the ADV that cryptocurrencies could have. Bitcoin will account for 35 percent of that market share, which would that $175 billion of the $500 billion figure, he said. This would mean that $175 billion worth of Bitcoins would be traded every day
->Van-Petersen then implies that Bitcoin’s market capitalization would be ten times the average daily volume, giving a figure of $1.75 trillion for the market cap. The current figure is around $37.8 billion, according to data collected from industry’s resources.
->Bitcoin has a limited supply of 21 million which is expected to be reached by the year 2140. In 10 years, the analyst thinks that there will be 17 million bitcoins in circulation, up from the current 16.3 million figure.
->If the potential 17 million of bitcoins in supply is divided by the $1.75 trillion market cap estimate, then each bitcoin would be worth just over $100,000.
Van-Petersen who also owns Bitcoins mentions that this is a raw calculation but that his growth predictions could be “conservative” given that in the year 2013 alone, Bitcoin’s price rose over 5,000 percent. The analyst also mentioned that cryptocurrencies or virtual currencies will survive in the long run.
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