January 21, 2020

One Bitcoin for One Million – Real or Delusional?

For example, the famous American company McAfee, which develops protection and system analysis programs, seems to have firmly believed in precisely such a future value of bitcoin. Moreover, they were expecting a value of about 2 million by 2020, although many analysts are already talking about the irrationality of such judgments.

It is worth noting that McAfee is a cybersecurity professional. The creators of the antivirus product of the same name have recently also been engaged in cryptographic protection.

John McAfee expressed his thoughts on this subject, based on an interesting theory. Based on his words, there are only 21 million real bitcoins in the world, of which seven were lost forever without the opportunity to return them. And if Satoshi, the anonymous creator of bitcoins, is dead, you can add several million more cryptocurrency units to this amount.

It is worth noting that the first years of the existence of Bitcoin, users did not take due responsibility to the storage of their digital assets.

On the other hand, the opposite opinion on the Bitcoin value account was made by analyst Josh Rager, an adviser to Level and Glassnode. According to his forecasts, the growth of Bitcoin will stop its growth in the region of 75,000 – 85,000 US dollars.

Irrationality behind $1M Bitcoin price prediction ― Josh Rager

What is Rager’s theory based on? The answer is the law of diminishing returns.

Josh analyzed that each cycle will give less than the previous time. By having made theoretical calculations, his prediction came out no more than $ 75,000–85,000 at the top of the next bull race. Experts from ByteTree Technologies also support the latter opinion.

In all rational and irrational analyzes, it is argued that there is a fundamental case where Bitcoin has reached a market capitalization of $ 1 trillion or more. Adam Beck, a creator of the Proof of Work protocol for bitcoins, cited several reasons why a rapid rise in the value of bitcoins is possible.

The trade war between the US and China, the presence of negative bonds worth 17 trillion US dollars that do not meet any traditional economic standards. As well as the adoption of the Modern Monetary Theory, an economic framework criticized for mass inflation, are the reasons for Bitcoin’s growth inevitable, according to Adam.

Disclaimer

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.

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