2020-7-24 14:31 |
A research team identified as the Crypto Research Team recently published a report predicting extreme prices for Bitcoin and altcoins. Their predictions are expected to materialize in the next 10 years.
The findings were largely influenced by the critical analysis of a metric consulted to identify an estimation of cryptocurrency implied future price called “Target Addressable Market (TAM)”. The Target Addressable Market for cryptocurrencies used by the research group includes tax evasion, store of value, online transaction, remittance, micropayments, reserve currency, online crypto trading, online gambling, offshore accounts, consumer loans, and others.
According to the outcome of their analysis, Bitcoin is in pole position to stage a massive bull-run which will send its price to as high as $397k. The report estimated that Bitcoin has only penetrated less than 0.44% of its addressable market which represents $212 trillion. Bitcoin is currently at the start of its adoption curve. For this reason, there is a high possibility of the digital asset reaching close to $400,000 when it penetrates about 10% of its total addressable market.
Bitcoin is, therefore, expected to trade at an extreme price by 2025 before proceeding to the stated price point in 2030. As expected, the researchers reported a spread over effect which will send the likes of ETH, Litecoin, BCH, and XLM to the moon. The expected expansion of the adoption rate will cause Bitcoin to rise by 4000%, while Ethereum rises by 1600%, Litecoin by 5000%, and Bitcoin Cash by 5400% by 2030.
The Bitcoin price will also be influenced by speculation which is the main driving force and price determinant of cryptocurrency. There has been a high-velocity on-chain and low-velocity off-chain suggesting that the cryptocurrencies are not increasingly used for a store of value, but for speculation.
Bitcoin price is currently hovering around the $9500 price zone and has been an improvement on the market pullback recorded in the first quarter of the year.
The impact of the halving that happened in May and the possible activity of the whales coupled with the market speculation makes the $397k price prediction very achievable in the next 10 years. With the expectation of a price increase, speculation will once again take the lead to drive the Bitcoin price to the moon. When this happens, altcoins that mostly rely on the Bitcoin price to determine their next direction of movement will not be left behind.
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