Some Analysts are Bullish But Others Warn of Risks Ahead
Bitcoin has risen in the last few months and has crossed $ 50,000 for the first time this week. Anthony Pompano, co-founder and partner of Morgan Creek Digital Assets, said bitcoin could hit $ 500,000 by the end of the decade and eventually go on to reach $ 100,000 per coin.
A JPMorgan strategist has warned that a major risk could be retail inflows into Bitcoin at $1 Million as economies reopen. According to Guangzhou, China — an asset manager, bitcoin could grow up to $ 100,000 in the long term to become a reserve currency for the world.
But JPMorgan warned of further risks as the cryptocurrency rally continues.
Anthony Pompiano, co-founder and partner at Morgan Creek Digital Assets, said bitcoin could hit $ 500,000 by the end of the decade. He said that it could eventually reach $ 100,000 per coin, without giving a timeline.
“I think bitcoin will eventually grow to become a global reserve currency. He said during the latest episode of CNBC-Voice’s ‘Beyond the Valley’ podcast, I think bitcoin will ultimately be much larger than the gold market cap.”
Bitcoin has risen in the last few months and has crossed $ 50,000 for the first time this week.
Why is Bitcoin Mobilizing?
There are many factors behind the congestion in bitcoin.
There have been large participation from institutional and retail investors. Major companies are also getting more involved with cryptocurrencies. Musk and Square founder Jack Dorsey are both supporters of bitcoin.
Meanwhile, global central banks are easing monetary policy — such as lowering interest rates and purchasing assets through a so-called quantitative easing program — to help shock economies affected by the coronavirus epidemic.
Bitcoin Bull predicts that bitcoin may bump to Bitcoin at $1 Million, based on a few factors including a lack of cryptocurrency that has a limit of 21 million coins, as well as the decentralized nature of the technology.
There is no central authority like the central bank that controls bitcoin.
These miners operate a vast array of specialized computers required to carry out the bitcoin mining process.
Since there are many different miners, no single entity can control the network. “As more and more people come to the market, there is more liquidity. Since liquidity is high, it has more utility. As there is more utility, there is more stability in price. Pompliano said You get this kind of development.
“If you think about that Internet economy, there is a native currency (Bitcoin) will eventually take a seat in the state of being the global reserve currency that the Internet generation has.
JPMorgan’s long-term price target for bitcoin
He said the value of gold held by the private sector solely for investment purposes is about $ 27 trillion. To reach the market cap of bitcoin, it would need to hit a price of around $ 146,000.
But there are caveats, the biggest one being the price volatility of Bitcoin. Panigirtzoglou said that Bitcoin “has five times more volatility than gold.”
The strategist of JPMorgan said, the key to bitcoin’s volatility convergence with gold is institutional adoption.