Based on the daily average increase sustained since 2010 then by 2020 Bitcoin will be valued at around $250,000. This calculation comes from the developer Jameson Lopp and was tweeted a couple of days ago.
With the exception of 2014, which was affected by the downfall of now-defunct Mt. Gox, Bitcoin has continuously recorded positive daily value change since 2010. In the last three years, Bitcoin price has increased exponentially, surging by 0.09, 0.22 and 0.66 percent in 2015, 2016 and 2017 respectively on a daily basis. In 2017, Bitcoin price increased by 0.66 percent on a daily basis, as Bitcoin price surged from $980 to $2750 within a six-month period.
If we assume that Bitcoin price will increase at an average rate of 0.42 percent on a daily basis then the Bitcoin price should reach $250,000. by 2020.
Bitcoin’s value cannot be predicted based on a linear calculation and graph. Bitcoin’s growth in terms of user base and market cap is exponential.
Lopp stated that the miracle of compound interest makes the $250,000 by 2020 calculation nonlinear. We can also expect to see 1 Million in 2021, only ~11 months after hitting $250,000.
Lopp said:
“It’s not linear due to the miracle of compound “interest.” 0.42 percent of tomorrow’s value is > 0.42 percent of today’s value,”
Media Frenzy
However these claims are faily conservative when compared to recent media stories. If scaling issues of Bitcoin become resolved and more investor begin to purchase Bitcoin as both a digital currency and digital gold, it is possible for Bitcoin to grow at the predicted rate of Lopp. In fact, Xapo CEO Wences Casares claimed Bitcoin price could go up to $1 million within 5 to 10 years.
Most recently, ABC News, a national news service in Australia produced by the Australian Broadcasting Corporation, and The Wall Street Journal have been offering extensive coverage on Bitcoin price by comparing the cryptocurrency to the performance of the US dollar, euro, Japanese yen and British pound.
Alan Silbert, senior vice president at Capital One Healthcare and founder of BitPremier, revealed that the traditional Wall Street Journal newspaper demonstrated the growth chart of gold and Bitcoin on its front page as interest and demand toward Bitcoin have been on the rise.
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