The value of Bitcoin experienced a significant increase as it went over the 9,000 USD mark on April 24. But a crypto analyst said that the value of Bitcoin could increase by “hundreds of thousands” if it is used as a replacement for a major currency.
The price of bitcoin had some trying times after officials and banks were pressured to regulate cryptocurrencies. But bitcoin has experienced a 40% increase from its low of 6,420 USD on April 1. At the Sohn Investment Conference, a cryptocurrency analyst John Pfeffer predicted that Bitcoin’s price will rise to a minimum of 90,000 USD and possibly as high as 700,000 USD.
“The bear scenario is zero. People should consider bitcoin, crypto assets as venture capital investments. The value could drop, but there is a chance that they could worth a lot more in the future” – said Mr. John. He also said that, if BTC becomes a major reserve currency, investors could get higher returns on investment. Pfeffer said it is definitely possible for bitcoin to get to hundreds of thousands, but the possibility is low. But he strongly believed that the value of BTC could get to 90,000 USD a few years from now.
How Bitcoin Can Obtain Its Predicted Value
Mr. John said in order for bitcoin to attain a minimum value of 90,000 USD, a greater percentage of foreign reserves need to be replaced with bitcoin, including gold. The more foreign reserve bitcoin replaces, the higher the value of Bitcoin. Bitcoin has also replaced gold to a certain level, and it is the first viable candidate to do so.
In developing countries with weak currencies, bitcoin could be very important and more useful. The price of bitcoin is currently on the rise, and with use and adoption in various industries and economies, the value will keep increasing. But it will attain a much greater height when it replaces some major reserve currencies.