Bloomberg Predicts Bitcoin at $100,000
Those who sat calmly three months ago when the five most popular cryptocurrencies suddenly dropped in value at the rate of a falling girder from a precipice, and instead of giving cryptocurrency the cold shoulder were actually becoming increasingly interested in buying in whilst a relative low period was in the spotlight, are now being held out as shrewd.
That fateful week when hyperactive influencer Elon Musk made that now historic tweet accusing Bitcoin of not meeting his self-imposed green credentials after taking a swipe at the electricity use required to mine the most popular cryptocurrency was a game changer in that it was the first time in the history of any asset class that a flash crash had caused people who would never have been interested before to invest.
a large number of new Bitcoin investors took to the fold, and suddenly digital wallets on new addresses were filling up, and then as was very much predictable, along came Elon Musk with another tweet, which drove the prices back up again.
Since then, Bitcoin, along with other popular decentralized currencies such as Ethereum, have been gaining value and this week, that has turned into a crescendo of sudden upward momentum.
As encouraging as it was that new investors began to see decentralized investments as very much the future of the financial framework, there is now a bullish sentiment around regulation and taxation, too.
After the recent talks by the US authorities about the proposed tax treatment of cryptocurrency and some further discussions about regulation, confidence is at a massive high as investors clearly see the value of full disclosure and regulation as mainstays of sustainability for cryptocurrency.
The result is that it has rocketed, and Bitcoin is now in the high $40,000s, which is enough to celebrate in its own right, but today, the enthusiasm doesn’t stop coming and it has been doing so in the form of enthusiasm from very well respected institutional analysts.
Bloomberg, for example, had Senior Commodity Strategist Mike McGlone on TV today, who said in a television interview “Guess what? If it just follows Ethereum, it goes to $100,000″ making a reference to the possibility of Bitcoin making similar gains in percentage terms to Ethereum.
On Al-Jazeera, Fundstrat Global Advisors’ Tom Lee also said that he can envisage Bitcoin reaching $100,000, which he thinks will happen by the end of 2021. The firm’s co-founder and head of research recommends investors follow a simple rule: If Bitcoin crosses above its average price over the last 200 days — a long-term momentum measure — then it’s time to buy.
The bans on mining that have occurred within China have not been of much consequence, despite the majority of large scale mining having taken place in mainland China for many years until the government began to swoop on miners causing many to abandon their rigs.
One particularly interesting line of thinking is that the banning of mining by such a significant mining region as China has been an acid test for the network’s stability, an unofficial test which the Bitcoin network has passed with flying colors given that it is still utterly stable despite the packing up of many large miners across China.
This is another factor which could be bolstering prices – the stability and sustainability of the entire Bitcoin network, which remains solid despite sudden actions such as large mining rigs being removed without it having an effect on the operating prowess of the network.
There’s sustainability right there.
Today’s predictions of a six-figure value for Bitcoin are not just trendy sound bites from the keyboards of self-promoters. They are genuine predictions by respected analysts within respected analytics and market data companies, and that is why it is interesting.
Bitcoin is now not only mature, but stable and sustainable, as well as infinitely desirable, too.