The trend of adopting Bitcoin is set to pick up pace as the cryptocurrency investment ecosystem is still relatively in its infancy.
Richard Byworth, the Chief Executive Officer of Nasdaq-listed digital asset and financial services company Diginex Ltd (NASDAQ: EQOS), is bullish on Bitcoin (BTC), projecting a price target of $175,000 for the cryptocurrency before the end of the year. According to a Coindesk report, Byworth is positive the bull run of the world’s largest cryptocurrency by market cap is still in its early stages, adding “things are going to get a lot more heated from here.”
Byworth is the latest amongst experts that have expressed their bullish potential for BTC, following the headstart it started 2021 off with. “We are modeling out about $175,000 for the price of bitcoin by the end of this year,” He said, speaking in an interview with Bloomberg.
Diginex Boss Believes Stimulus Package Will Help Bitcoin Price Surge
As a basis for the bullish projection on the price of Bitcoin, the Diginex boss believes that the rollout of the stimulus cheques will have a “push effect onto bitcoin” and help in charting a new price course for the cryptocurrency.
The stimulus funds which are pegged at $1.9 trillion are set to awash the US economy with tons of fiat dollar, a basis for monetary inflation. In the wake of this economic reality, the eligible American citizens who are billed to benefit about $1,400 each may see a reduced value for their money.
This potential inflation may yet push American companies to adopt an alternative investment asset to help hedge against the fluctuating price of the Dollar. In the past year, we have seen increased adoption of Bitcoin by US firms with the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Tesla Inc (NASDAQ: TSLA), and Square Inc (NYSE: SQ) taking the lead.
“We are starting to see institutional adoption to a degree that is so extreme, that you’ve got four companies – MicroStrategy, Tesla, Square, and now recently Meitu – owning 40% of bitcoin’s annual supply in just a few months,” Byworth said.
The trend of adopting Bitcoin is set to pick up pace as the cryptocurrency investment ecosystem is still relatively in its infancy.
Bitcoin Valuation and Privacy Threat
One of the points constantly highlighted by regulators is the anonymity of transactions involving Bitcoin and other altcoins. When asked about the blockchain technology’s anonymity factor, Byworth said, “Bitcoin isn’t anonymous, and can be tracked very very easily.”
This claim was made evident when the social media platform Twitter was hacked last year. The perpetrator of the attack was swiftly identified and arrested, a situation that lends credence to the transparency and financial compliance of blockchain technology.
Bitcoin rose to a new all-time high price on February 13th, setting a resistance at a $60,000 psychological level. At the time of writing, Bitcoin is exchanging hands at $56,108.21, down by 7.71% in the past 24 hours.
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