Bitcoin has subsequently surpassed the $10,000 price level which many believe should increase the coin’s chance of a possible rally.
At the current price of $10,253, Bitcoin’s year to date return is still over 200% and has generally dragged most of the major altcoins up with it. Even with the current returns, analysts still have considerably bullish sentiments, with some forecasting that Bitcoin could hit its current all-time high of $20,000 before the year runs out. However, a much more bullish prediction which put Bitcoin at $50,000 has come from Bitcoin pioneer and Proof of Work (PoW) creator, Adam Back.
Bitcoin Could Hit $50,000 Soon
In a recent tweet, Back predicts a surge of up to 400$ for a few reasons. According to Back:
“Bring it on. 2020 halvening, lots of geopolitical uncertainty, $15tril of -ve interest bonds, MMT excuses being tested to bring an even more imprudent USD inflation regime.
With a $50k BTCUSD price, $1tril market cap, would be…not far off.”
Block rewards for Bitcoin miners are set to halve after every 210,000 blocks, which usually takes about 4 years. The next halving event will take place a few months from now, in May 2020.
Currently, miners receive 12.5 BTC per block and by then, it will cut to 6.25 BTC. Usually, when this happens, prices surge significantly and there’s currently no reason to think that the next one will be any different.
In recent times, there has been a lot of political tension in quite a few countries and usually, when these things happen, people who are in fear of a crash tend to focus more attention to Bitcoin using it as a hedge, in case things go wrong with fiat.
The U.S.-China trade war has been said to be the reason, on at least one occasion, why Bitcoin surged because Chinese businessmen needed to be proactive. The current destabilization going on in Venezuela, leaving the inflation rate over 200,000%, is another factor. Recently, Venezuelans hit a Bitcoin record in trading volume and if the unrest continues, Venezuela and several other countries should catalyze Bitcoin.
According to the Bloomberg Barclays Global-Aggregate bond index, several trillion dollars worth of bonds has been performing very poorly. At some point and if this continues, people will realize that the bonds are a bad idea and Bitcoin would get all of that traffic.
There’s also the Modern Monetary Theory (MMT) which pretty much suggests that countries that issue their own currencies would most likely never run out of money. A policy like this would mean that countries would be eager to keep on issuing money which is very likely to result in terrible inflation. In a case like this, everyone will most likely run into Bitcoin.
Even if no one agrees to $50,000, the above reasons make it very easy to see why a Bitcoin surge might be “not far off.”