Dear Reader,
In one blogpost from 2017 I forecasted that Bitcoin could reach 100 000 USD.
Then, shortly afterwards Bitcoin's price crashed.
I stand by my forecast that Bitcoin could not only reach 100 000 USD in value, but even surpass the 100 000 USD mark.
Why? Slowly, but surely Bitcoin is becoming an investment vehicle of choice not only for retail investors, but also for hedge funds, asset managers and even companies like Square and Tesla most recently. Bitcoin is on a path to become a USD 2.0, a global currency for transactions. The huge volatility of Bitcoin for the moment prevents the attainment of global reserve currency status. But as more and more financial institutions enter the cryptocurrencies markets Bitcoin's price will stabilize since Bitcoin's liquidity will increase and the price fluctuations will decrease, because institutional investors are more long-term focused in their investments.
What is more, as the price of Bitcoin rises to new highs, this will enrich the market for cryptocurrencies. Bitcoin's rising tide will lift the prices of other major cryptocurrencies like Ethereum, Ripple and eventually the prices of more peripheral cryptocurrencies issued by companies to finance various projects. Such tokens issued by companies are tied to the future success of companies, so they should be analyzed as stocks. But one should bear in mind that cryptocurrencies carry no participation in the bankruptcy estate of the particular company.
Success leads to new success. And as the main stream media news are filled with reports of Bitcoin's price rising to new highs more and more investors enter the cryptocurrency market. Bitcoin's decentralization will soon bring about greater trust in cryptocurrencies. If I have to put an intrinsic value on Bitcoin, I would say that Bitcoin could be worth 200 000 USD in the next 5 to 7 years.
If government regulation via central banks in some way supports Bitcoin, Bitcoin will only be a short distance away from becoming a global reserve currency.
For now Bitcoin remains mainly an investment vehicle, but as Bitcoin matures it will get closer to official money status.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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