The last month has been a record setting one for bitcoin. The cryptocurrency now lies at a record level following its inclusion in the futures market. The rise in the price of the cryptocurrency is no anomaly as there has been a distinctive upward trend ever since the currency came out.
Interestingly, many analysts and traders associated with the bitcoin market suggest that the rapid increase will not come to a halt and the price for bitcoins will rise even further. Many of the people associated with Bitcoin believe that another rapid increase is within sights and we might see unbelievable figures come out in the next decade in 2020.
According to one analyst, the price for bitcoins has the ability to cross well over $100,000 within the coming 10 years. The price increase might sound a bit overwhelming right now, but if current figures are anything to go by, we might as well see this happen too.
In December, when Saxo Bank issued their annual report, one of the members suggested that bitcoins will cross the $2,000 barrier in the coming year. Bitcoins that were marked at $754 at that time crossed the $2000 figure in May of this year. The rapid rise is now visible and we now see bitcoins recorded at more than an outrageous $8000 per coin.
But now, the analyst behind that call has said that bitcoin’s progress is by no means stopping and that the crypto will soon cross the $100,000 barrier in the coming decade.
How will bitcoin cross $100,000?
Van-Petersen, who predicted the rise in 2017, suggests that cryptocurrencies in general and not just bitcoins will account for more than 10 percent of ADV or average daily volume of all fiat currency traded in 10 years. Foreign exchange ADV is currently marked at $5 Trillion.
Considering that digital currencies will become 10 percent of ADV we can assume that they would be 10 percent of $5 trillion, which is $500 billion. Hence, $500 Billion is the speculated ADV that digital currencies could possess. Bitcoins, which accounts for 35 percent within the crypto market, would hold $175 billion of the $500 billion estimated for crypto’s. This means that there would be roughly $175 billion of bitcoins or BTC traded on a daily basis.
Van-Petersen also assumes that the market capitalization for bitcoins, which is currently said to be around $37.8 billion, would rise to a massive $1.75 trillion. Moreover, bitcoin has a limit of 21 million, which analysts speculate would be met in 2040. Within 10 years time there would be more than 17 million bitcoins in circulation.
If the potential amount of bitcoins i.e. 17 millions is divided by the total market cap of $1.75 trillion, we can calculate the price of each bitcoin to be worth over $100,000. Van-Petersen, who also owns bitcoins, suggested that this was a rough calculation, but he expected the price to rise since bitcoin is not a fad as cryptocurrencies are here to stay.