$ 1 Billion capital market dollars and $ 55,000 per BTC for 2020 according to new prediction
The Bitcoin price may reach $ 55,000 sometime in 2020 or 2021, according to a new Bitcoin pricing prediction model, which influences the decline in Bitcoin’s offer as a direct driver of market value.
A cryptographic analyst known in the industry as Plan B has just launched a new prediction model. The model analyzes the potential impact of halving Bitcoin, which will halve the block reward awarded to miners and further slow down the production of Bitcoin’s finite supply, which is limited to 21 million BTC.
The historical reductions have had a positive impact on the price of Bitcoin, and according to Plan B, increasing scarcity will again generate value.
While Bitcoin can not scale or be as technologically capable as some other cryptocurrencies, or future crypts that have not yet been released, it still has attributes that no other crypto has or will have, particularly a universally recognizable name and the advantage of the first player.
No other cryptocurrency can ever be created in the same scenario and context in which Bitcoin was created, it could not be, because for any other cryptocurrency that may arise, Bitcoin will already be a precedent. That is one of the reasons why Bitcoin has value among other things.
But the value of Bitcoin really lies in that it is the first scarce digital object that the world has found. Unlike silver and gold, Bitcoin can be sent over the Internet, radio, satellite, etc.
In addition, it is probably one of the scarcest assets in the entire world. Gold and silver can be found and extracted continuously, while the established amount of Bitcoin is 21 million. Actually, it is even less than that, because an estimated 36% of Bitcoin’s circulating supply has already been lost forever.
If gold and silver are lost, they can possibly be found someday, since they still physically exist; when a Bitcoin is lost, it is lost forever, because you can not go to the beach with a tracker waiting to find one.
The Bitcoiner “Plan B” compares the stock-flow ratio (SF) of Bitcoin and precious metals to predict where the BTC price is headed. The stock is the size of existing reserves or reserves, while the flow is the annual production. According to the analysis, the next halving, which is scheduled for May 2020, will probably place Bitcoin’s flow-to-cash valuation close to gold.
“The hypothesis in this study is that scarcity, measured by stock-flow, directly drives the value,” he explains.
The model uses SF as its data entry based on mathematical relationships of power law and fractals to predict the possible price of Bitcoin.
According to this model:
The market value foreseen for Bitcoin after the reduction in the middle of May of 2020 is $ 1 trillion, which translates into a BTC price of $ 55,000.
This model is analyzing the next Bitcoin reduction that implies the fact that the block reward given to the miners will be reduced by half.
Reportedly, these halves have generated a positive impact so far and that is why Plan B sees a bright future ahead. Regarding Plan B, he comments: “Bitcoin has an unforgivable cost, because it costs a lot of electricity to produce new bitcoins. Producing bitcoins can not be easily faked”.
Plan B continues and explains: “Note that this is different for fiduciary money and also for altcoins that have no supply limit, have no proof of work (PoW), have little interest in using the hash, or They have a small group of people or companies that can easily influence the offer, etc”.
Likewise, Plan B points out that other factors can also affect Bitcoin’s price, including hacks, regulations and other news, so that all points are not on the straight black line. However, he points out that it is clear that the dominant price driver seems to be scarcity / SF.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.