Bitcoin (BTC) Is Set To Hit $1 Million Over The Next Decade, According To A 95% Accurate Indicator
There have been a lot of Bitcoin-related predictions so far this year, and most of them have been following a bullish trend.
The latest one that has been detailed by the Daily Hodl might seem a bit too far-fetched, but here it is.
BTC to hit $1 million in the next decade
Crypto analyst and the author of Cryptocurrencies Simply Explained, Julian Hosp just said that a metric which is known as the stock-to-flow ratio indicates Bitcoin is on a trajectory to $1 million over the next ten years.
This ratio reportedly calculates the current supply of a particular commodity divided by the amount that’s produced on a yearly basis in order to predict future value.
When using this ratio in order to determine where BTC could be heading in the future, BTC’s limited supply of 21 million coins becomes a key factor.
Hosp said that in the short term the model is showing that the coin’s future halving which will take place next year and will cut the block reward given to miners in half should boost the price of BTC somewhere from $100k to $300k.
Hops said that “Suddenly, we will have way less production… So by halving this, in order to keep the ratio stable, just from that the price [of Bitcoin] needs to double.”
He continued and explained, “But we are so much lower right now in the stock-to-flow ratio compared to gold, that if we get closer and closer to [gold’s ratio], the price should actually go to a $100,000 – maybe even $300,000. And then we would have a setback similar to how we always have these setbacks, to around $40,000.”
He says that BTC will continue to surge in the next ten years and it’s set to reach $1 million for sure.
You can find out more details in the video above.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.