There have been many Bitcoin-related predictions this year, and they seem to be getting more and more bullish. The latest forecast has been reported by the Daily Hodl and it might be a bit too far-fetched.
Bitcoin to reach $1 million in ten years
Julian Hosp, crypto analyst, and the author Cryptocurrencies Simply Explained stated that there’s a metric which is “known as the stock-to-flow ratio indicates Bitcoin is on a trajectory to $1 million over the next ten years,” as reported by the Oracle Times.
The ratio reportedly is able to calculate the current supply of a certain commodity that is divided by the amount that is produced on a yearly basis in order to predict future value.
The online publication also made sure to explain the fact that when using the ratio to determine where BTC could be heading, the most important digital asset’s limited supply of 21 million coins eventually becomes a critical factor.
Hosp also said that in the short term, this model shows that BTC’s future halving which is set to take place in 2020 and which will cut the block reward given to miners in half should boost the price of the digital asset to $100k-$300k.
Hops said that “Suddenly, we will have way less production… So by halving this, in order to keep the ratio stable, just from that the price [of Bitcoin] needs to double.”
He continued and explained, “But we are so much lower right now in the stock-to-flow ratio compared to gold, that if we get closer and closer to [gold’s ratio], the price should actually go to a $100,000 – maybe even $300,000. And then we would have a setback similar to how we always have these setbacks, to around $40,000.”
He predicted that BTC will reach $1 million in about ten years from now.
At the moment, BTC is trading in the red on CoinMarketCap, and it’s priced at $8,010.99.
Fergus Reynolds joined Crypto Daily Gazette as managing editor in January of 2018 and is helping to lead the digital media startup’s next phase of expansion. A veteran business journalist with more than 10 years experience economics, Fergus has published content for Huff Post and Buzz Fee and was among the earliest journalists covering bitcoin and the innovations it later inspired. Fergus tells us he has “several” bitcoins.