Bitcoin Surpasses $8,500 – $10 Million Prediction Is Reportedly Viable
There have been all kinds of Bitcoin-related predictions these days, and despite the massive volatility of the crypto market, these seem to be getting more and more bullish.
The truth is that the crypto market looks excellent today, with the most important coin in the market managing to hit $8,500.
Bitcoin hitting $10 million is not too far-fetched to say
Now, it’s been reported that a co-founder of the blockchain technology startup Blockstream said that the notion that BTC could one day hit $10 million is not a crazy prediction at all.
Adam Back analyses an experiment from the early BTC developer Hal Finney. In 2009, in an email chain with Satoshi Nakamoto, Finney pondered how high Bitcoin price could go, as reported by the online publication the Daily Hodl.
“As an amusing thought experiment, imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should be equal to the total value of all the wealth in the world,” he said.
He continued and said: “Current estimates of total worldwide household wealth that I have found range from $100 trillion to $300 trillion. With 20 million coins, that gives each coin a value of about $10 million.”
Huge prices could be achieved if BTC gains more adoption and is used as a currency
Such a huge number could be achieved in Back’s opinion only if BTC gains mass adoption, and it’s used as a currency and if the value to the dollar drops.
It's closer than it sounds as along the path of hyperbitcoinization, the USD inflation rises, eg aided by Modern Monetary Theory rationale for high inflation, so $1 becomes worth say 10c over a decade or two of monetary craziness, then $10mil/BTC is $1mil/BTC in today's money.
— Adam Back (@adam3us) January 11, 2020
He continued and said: “And $100k Bitcoin doesn’t seem so far given we already crossed $10k threshold a few times when few expected even $1k some years back and $10k seemed crazy.”
Plan B famous crypto analyst hopped in the comments and said: “Totally agree. Must admit that I probably would not have this level of confidence (and interest) in bitcoin, if I would not have had 20+ years experience investing $100B AUM and personally seeing the unintended consequences of quantitative easing (QE) and negative interest rates.”
At the moment of writing this article, BTC is trading in the green and the coin is priced at $8,520.91.
A highly-skilled cryptographer, Back developed HashCash, the proof-of-work anti-spam mechanism. Now the CEO of Blockstream, one of the major founders and development teams behind Bitcoin Core, Back often speaks on the benefits of Bitcoin, and presented at the G20 Meeting of Finance Ministers this year.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.