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Bobby Lee thinks that Bitcoin price will reach $500,000 and its market capitalization will hit $8 trillion by 2028.
Topmost cryptocurrency expert and co-founder of top cryptocurrency exchange BTCC Bobby Lee made some bullish predictions for Bitcoin in the mid-term to long-term sources indicate. Lee made this known via a couple of tweets which indicated his stance on how the current topmost cryptocurrency will fare within the next eight years.
According to Lee, Bitcoin will hit a market capitalization of $8 trillion. With Bitcoin’s market capitalization at just about $160 billion, while that of gold is about $8 trillion, Lee believes that the cryptocurrency will catch up with one of the world’s most precious assets by 2028 due to several factors which are currently at play.
#Gold is at about $8 trillion today, which is 50x the worth of #Bitcoin.
I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000.
And with all of the money printing that’s happening globally, $BTC will actually very likely be over $1 million! https://t.co/hbqGze38k5
— Bobby Lee – Ballet: Simple & Elegant Wallet (@bobbyclee) November 10, 2019
Firstly, based on the decreasing supply of the available Bitcoins to be mined is one reason why demand will be much higher in the first place.
The second reason is the fact that the Bitcoin rewards for miners are becoming smaller making the miners charge higher fees and thus exponentially increasing the price of the cryptocurrency. Note that there will be three halving events in the next decade so there will be much activity around Bitcoin based on this alone. This, of course, gives the cryptocurrency the perceived value will make it more valuable than gold.
Thirdly, the fact that cryptocurrency tokens generally possess historically less inflation than their physical and fiat counterparts in terms of assets, this will see many investors both retail and institutional flock towards the cryptocurrency as prices will rise in tandem with demand.
Thirdly, due to the global uncertainties that are currently occurring on the world stage ranging from Brexit, the US-China trade wars and other events that are undermining the current World economy, the economies of nation-states are going into one form of chaos after the other.
As such, liquidity provisions are being made right left and center for the different problems that are occurring (an example of this is the continuous quantitative easing that the U.S. FED is executing). Inflationary tendencies are already set in the global economy. Based on recent historical data, once there is chaos within the global space, investors flock to the crypto space as a measure of safety. The next decade will be defined by these forms of chaos which will allow for a drastic increase in the prices of Bitcoin and other cryptocurrencies.
All these and more have also been noted by others within the crypto space as well. This includes the stock-to-flow model developed by the popular social media cryptocurrency analyst PlanB. The tool employs the current stock vs. future stock model to predict prices for the cryptocurrency.
While both parties agree on higher prices for Bitcoin within the next decade, Lee considers the possibility of a $1 million bitcoin if the U.S. FED continues its quantitative easing of the dollar while PlanB considers that the Stock-to-flow model will fail due to excess inflation from the money printing.
I normally don't deploy statistical models 120+ years out into the future. I would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ .. who knows what happens with $ if the FED keeps doing more QE (money printing).
— PlanB (@100trillionUSD) October 31, 2019
This also brings up the question of Bitcoin and gold. Known gold optimist and cryptocurrency skeptic Peter Schiff has already indicated that Chinas’ new cryptocurrency if backed by gold, will create a bearish trend for Bitcoin while Max Keiser has raised the possibility of Bitcoin becoming the new standard due to its self-settling ability. This was indicated in the recent Keiser report.
According to @maxkeiser I'm an idiot because I think #gold is better money than #Bitcoin. He also claims China is about to launch a crypto currency backed by gold. This is bullish for gold and bearish for Bitcoin. A crypto backed by gold is much better than one backed by nothing!
— Peter Schiff (@PeterSchiff) November 1, 2019
Whatever happens, we are in for interesting times as the cryptocurrency community is seemed to have finally found its place in the financial space.