There are always new Bitcoin exchange rate predictions. While the forecasts of BTC in the short to medium term in a framework of 4,400 up to $ 80,000, came out now a huge moon forecast Qiao Wang. Wang is an Angel Investor and Co-Founder of the Bitcoin and crypto analysis company Messari. In his opinion, the Bitcoin exchange rate can rise in the framework of the Coronavirus up to 1,000,000 dollars!We take a look at the moon, prediction of Wang and his arguments. What are the reasons he is called and how realistic such a prognosis is at the current time, anyway?
Bitcoin price and the market capitalization of Gold
The Narrative of Bitcoin as a Gold 2.0 or Digital Gold is well known to us all. Due to the properties that Bitcoin brings is compared to the largest Cryptocurrency according to market capitalization with the most sought-after precious metal in the world, namely Gold,.The market capitalisation of Gold, as a point of reference for any estimates of the Bitcoin exchange rate. The procedure here is simple: the current market capitalization of Gold is depending on the estimation methodology and source – around 7 to 9 trillion dollars. Who wants to name a potential target for the Bitcoin exchange rate, attributed to often in the following way:
If BTC takes as a digital Gold, 10% of the market capitalization of Gold, we would around 700,000 billion dollars. At the current Bitcoin exchange rate of 6,800 USD, the market capitalization is around 125 billion dollars. In order for Bitcoin from the current Situation, would increase by a factor of 5.6 and a final Bitcoin price of $ 38,000 land.
As far as the logic behind such a statement. The choice of the percentage is mostly arbitrary. It ranges from 10%-estimates to forecasts (or expectations?), that Bitcoin assume the same market capitalization of Gold. Thus, the Bitcoin price would be at 6,800 * 56 = 380.000 dollars. Depending on the estimate of the market capitalization of Gold, this number varies and ranges up to around $ 500,000. This number results, if we assume 9 trillion dollars as the market capitalization of Gold.Trading on our brokers comparison-winning eToro. You are looking for a reliable and intuitive Broker to trade crypto-currencies, CFDs, shares, Forex, commodities and more? Then let yourself be in our eToro Test in 2019 all of the features explain, what possibilities are given to you here and where is here the Before – and disadvantages are . eToro Test 2019 read now.
Bitcoin price of 1 million USD, according to Qiao Wang
We now come to the Considerations of Qiao Wang. As we have just seen, is based on the forecast of the Bitcoin price, often on the assumption of the market capitalization of Gold. Wang said in a recent Tweet that this potential would have to be for the Bitcoin exchange rate is still significantly higher than the mentioned Numbers.This he justified with the current economic measures in the framework of the Coronavirus. Because the Quanitative Easing by the FED, the money supply increases massively. In view of the associated negative impacts (keyword: Inflation) have Gold as a Store of Value to triple, according to Wang, the potential for a ‘triple’.
Lots of people think that Bitcoin’s total addressable market is ~$7T because that’s the marketcap of gold.Problem is, with so much #brrr going on gold can easily triple from here.So the digital gold thesis now puts Bitcoin’s TAM at ~$20T or $1M per coin…— Qiao Wang (@QWQiao) April 5, 2020
When we perform this adjustment now would increase the market capitalization of 20 trillion dollars. In Parallel, so the maximum Bitcoin price would have to increase by a factor of 3. From the earlier calculated 380.000 USD would be quickly 1.140.000 dollars per Bitcoin.
How realistic is the Bitcoin exchange rate forecast is?
Of course, you are now probably a question of how realistic this prediction is. As the title of the article already suggests, this is clearly the category of ‘moon prediction’. Even if the Numbers sound very tempting, they are subject to an extremely strong assumption:Bitcoin is the digital Gold, and is recognized as such by the majority of the people. The bill requires that BTC will be considered from the ‘normal citizens’ as a Store of Value and in a category with Gold. At this point, we have to acknowledge – despite the lure of Numbers – with all the realism that this is Far from the case. For this purpose, only the fact that the concept of Bitcoin is known as such as Gold does not speak. As a result, factors such as the technical hurdle in the establishment or creation of an account and a lack of technical understanding added. In my opinion, the prognosis of Wang is so not realistic.Nevertheless, it shows very nicely that the market capitalisation of Gold, which is used as a reference, is not a fixed number, but rather a sliding number. You will change and so also the potential of BTC in relation to Gold changes.A time to mourn however, this is not. Because even if Bitcoin it only would accept a fraction of the market capitalization, for instance 10 percent, so we were at a price of almost $ 40,000. From the current point of view, the so powerful gains would be.
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