I think that Bitcoin can reach that target – I mean it has this potential at least in theory.
However, it does not mean that this is exactly what is to happen. No-one knows the future. If some governments suddenly try to regulate it and limit its potential, Bitcoin can fluctuate in a sideways trend for an extended period. Another scenario may be that countries, financial institutions, and crypto community bet on some of the Bitcoin’s rival because of the better features and potential of its blockchain.
Considering today’s conditions, I think that it’s realistic that Bitcoin might hit $50,000 in a few years, though “a few years” is undefined. It is because Bitcoin’s supply is growing very slowly, while fiat money supply is growing rapidly based on stimulus programs of central banks and close to zero interest rates. Besides, the first reason is that more and more people and institutions convert their fiat money to Bitcoin to adopt the future, avoid the coming money crisis, or for speculation.
To understand the difference between Bitcoin’s supply and USD supply, check the following charts.
The blue line in the chart below clearly shows that the Bitcoin supply is increasing at a slower pace:
Now check the USD money supply:
As you can see, the pace of USD supply is growing, while the pace of Bitcoin supply is contracting.
This means more fiat money will go into the basket of cryptocoins, and Bitcoin is the first choice.
Some people say that Bitcoin will reach even $100,000. Here are some examples:
Bitcoin’s price has the potential to hit over $100,000 in 10 years, which would mark a 3,483 percent rise from its recent record high, an analyst who correctly predicted the cryptocurrency’s rally this year told CNBC on Tuesday. (it’s about Kay Van-Petersen)
According to analysis by Dennis Porto, a bitcoin investor and Harvard academic, bitcoin’s price could hit $100,000 per coin if it continues to follow one of tech’s “golden rules” — Moore’s law.
The analysis of Vays demonstrated the potential of bitcoin price to surpass the $100,000 mark by the end of 2018, which would provide bitcoin a multi-trillion dollar market cap.
Even Jamie Dimon, CEO of JP Morgan, who calls Bitcoin a fraud and a bubble, agrees that Bitcoin would reach $100,000 before it collapses.
“I’m not saying go short… Bitcoin can go $100,000 a bitcoin before it goes down, so this is not advice on what to do, “
So when you have all these analysts saying that $100,000 is a real target, $50,000 seems to be even more realistic.
Thanks for reading!