The chief economist at Hamburg Commercial Bank, Cyrus de la Rubia, said that the price of Bitcoin would reach $1 million by 2030. The economist said he arrived at this figure using the electricity model. He said:
“The moment these other energy-intensive goods, for example steel or aluminium, are in greater demand than additional units of the cryptocurrency, the relative attractiveness of Bitcoin decreases. Then the upper price limit is reached.”
Last month, Global Macro Investor CEO Raoul Pal also predicted that the price of BTC would hit $1 million. As for Pal, Bitcoin will climb $1 million by 2026. During an interview on the 20th of December, the CEO said his price prediction is based on the stock-to-flow model. Pal said stock-to-flow model creator, Plan B, explains the model and makes it easier to analyze the effect of supply on price. Pal also added that BTC reaching $1 million by 2026 is “not unreasonable.”
In 2020, Bitcoin attracted several individual and institutional investors. The BTC price gained more than 3000% in the year and new highs in different metrics. The spike in the price of Bitcoin in 2020 was fuelled by various factors, including PayPal’s announcement to allow crypto payments on its platform. In October, PayPal said its 346 million users can now buy and sell BTC and three other digital assets using their PayPal accounts.
Image Credits: Pixabay
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