An analyst who, in late 2016, correctly predicted that bitcoin prices would trump $2,000 this year has now forecasted bitcoin price to hit beyond $100,000 in 10 years.
As CCN reported in early December 2016, a “2017 Outrageous Predictions” report by Saxo Bank – a Danish investment and trading institution – made a number of forecasts about stocks, monetary reserves, commodities and banks around the world. In that report, analyst Kay Van-Petersen also called bitcoin to be punching above $2,000 under a Trump administration. On May 21st, bitcoin price struck $2,000 and went on to hit an all-time high above $2,750.
Now, Van-Petersen, who describes himself a skeptic of central banks (the Fed, Bank of Japan and the ECB in particular) and a ‘Bitcoin newbie’, sees more bullish gains for bitcoin over the next decade.
In conversation with CNBC, the analyst sees prices topping $100,000 in ten years and explains the reasons behind his prediction.
Firstly, Van-Petersen sees cryptocurrencies growing tremendously in the global trading market in the coming years. Enough for all cryptocurrencies to equal 10% of the average daily volumes of global fiat currency trading, in 10 years.
The average daily volumes of foreign exchange trading scales over $5 trillion in the present day. With this as the scale, Van-Petersen sees cryptocurrencies reaching 10% of that figure, or $500 billion in daily trading, in ten years. If bitcoin – conservatively – totals 35% of the cryptocurrency market share (it currently stands at 45%), daily bitcoin trading volumes would reach $175 billion.
The analyst also sees bitcoin’s market cap to be 10x that of its average daily trading volume in ten years, which would see the cryptocurrency reach a market cap of $1.75 trillion. Divide that figure by an estimated potential 17 million bitcoins in supply in 10 years and each mined bitcoin in circulation would be worth over $100,000.
Van-Petersen sees bitcoin as one of two or three main cryptocurrencies that will dominate in the coming years. “And the reason is the first-mover advantage, the scale and the pioneering,” he added.
While the analyst’s prediction is undoubtedly bullish – it represents a 4500% rise from current bitcoin prices – it pales in comparison to that of PayPal director and bitcoin executive Wences Casares. A week ago, Casares, an early tech entrepreneur who is now chief executive at bitcoin wallet Xapo, predicted bitcoin to hit $1 million over the next 5-10 years.
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