Recently one of the well-known figures in the world of crypto, Bobby Lee, made a statement, in which he mentions, that there is the possibility that the Bitcoin reach to have a market value of over one million dollars. Therefore, when you get to that price, clearly exceed the capitalization of the gold in the financial market. Thus, it will cause a great impact in different aspects.
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Aspects for which Bobby Lee believes that the Bitcoin will exceed 500 thousand USD
During the last few days Bobby Lee, one of the iconic figures of Bitcoin, and currently the leader of a startup Wallet of Bitcoin, has been posting tweets regarding the issue. However, one of the post more relevant, was as follows: gold is about $ 8 billion today, which is 50 times the value of the Bitcoin. I predict that the flippening will occur within 9 years, and BTC will shoot up beyond the 500,000 USD. And with all the printing of money is happening at the global level, the BTC could exceed a million dollars. Clearly Bobby Lee takes into account various factors by which the Bitcoin could come to have this value. Among these aspects is the printing of money, the halving or other. Bobby Lee predicts that the Bitcoin can reach to 500.000 USD
The printing of money is a key factor
A person with knowledge in economics, clearly knows that the excessive printing of money simply creates inflation in various aspects. It is for this reason, that money is not synonymous with wealth, because, it is simply a method of exchange. Unlike Bitcoin, fiat money can still be printed, therefore, the inflation generated by the money, it is unstoppable. However, the cryptocurrencies such as Bitcoin, have a production limit, which prevents, that the inflation by excessive production affect the value of such a method of exchange.
The arguments of Bobby Lee and the predictions made by the same, indicate that it is almost certain that the Bitcoin reach to possess a price extremely high. Due to a series of analyses, intended to predict or to determine its value within a period of 8 to 9 years. These analyses were performed taking into account that the printing of the money is physical, it is almost unstoppable, however, also took into account that some cryptocurrencies as the Bitcoin go through a process known as Halving; which affects their value and their speed of mining. On the other hand, Lee announced on one of their tweets that you would like to know what will happen with the price of Bitcoin if this model economy is kept for 2 or 3 halvings more; who knows what will happen if the Federal Reserve System continues to make more money.
Next halvings
The halving is a concept that was created primarily for the Bitcoin. Which is about a process that aims to reduce the amount of cryptocurrencies obtained through mining; this process is carried out in an automated manner every 4 years. On the other hand, each time this process occurs and reduces the amount of cryptocurrencies obtained through mining, there is an inflation in the currency is undermined, which may be 0.5% or higher. That is why, with the course of each halving, mining becomes more complicated, since, for each block mined, receive a smaller amount of BTC. Now, this causes the value of the digital currency increase, as each day passed the less people will want to sell their cryptocurrencies, because that will be more scarce and difficult to produce.
Competition between the gold and the Bitcoin
Since the Bitcoin came on the market it is believed that this criptomoneda could be the currency back in the future and to replace the gold. Which has generated a lot of negative comments on the Bitcoin or other cryptocurrencies. Between one of the figures most despised Bitcoin and has little credibility in the criptomoneda, you can find Peter Schiff, one of the most popular characters for his contempt towards such criptomoneda. Recently made various comments relating to the subject, because, Schiff believed impossible that the Bitcoin may exceed 50,000 USD and that gold will continue taking value in the market. Later Peter Shiff made the following critique: China could support the cryptocurrencies issued in the State with the gold. This comment, is clearly a critical bearish for the criptomoneda. Therefore, for the believers of the Bitcoin, such comments are considered an offense. Despite the competitiveness between the gold and the cryptocurrencies, in both groups there are multiple people who share their opinions and have different points of view. However, the probability that the Bitcoin to continue to increase its value is extremely high. The following two tabs change content below. I am a young man from Venezuela 18 years, lover of technology, innovation, and economic events that govern the world. One of my passions are cryptocurrencies.