Jesse Lund, the VP of Blockchain and Digital Currencies, is bullish on BTC and has also set a massive price target of $1 million.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin has the potential to reach a million dollars
Lund made this prediction of BTC long term price target at the Think Conference. He was interviewed by Fred Schebesta.
This top IBM executive revealed that when a crypto asset is higher, it has more utility. So he believes that people should not focus on the ever-changing prices of the crypto assets but their utility.
“If the price of Bitcoin were higher, there would be more liquidity on the network; we could be having a really different discussion with banks right now.”
Lund also added that the speculators are killing the value of digital currencies because they are not focusing on the important things.
Bitcoin price analysis
Lund predicts that Bitcoin price will rally by over $1,000 before the year runs out. During the interview, the executive made the remark and spoke more on the future of digital currencies. He predicts that the price of BTC will reach $5,000 by new years eve. His long term outlook for the cryptocurrency is a lot different.
“I have a long-term outlook. […] It goes back to that discussion about the utility of the network at a higher price. I see Bitcoin at a million dollars someday. I like that number because if Bitcoin’s at a million dollars, then the Satoshi is on value parity with the US penny. And that means there’s over $20 trillion of liquidity in this network. Think about $20 trillion in liquidity and how that changes things like corporate payments.”
The IBM executive believes that when bitcoin price becomes high enough, banks will begin to take an interest in them. When it happens, the token’s utility increases. Both R3 Corda and IBM are working hard on providing solutions for cross border payment solutions with digital assets.
This news is great for the digital currency space because it is not every day a top executive from the old tech world predicts a high price for BTC. Speculators are debating the $5,000 figure, but they believe anything is possible.
Stellar is a viable settlement instrument
IBM launched its World Wire product recently which relies on Stellar partly. Lund says that this cryptocurrency is useful for cross border payments even though it doesn’t have a large market cap.
“There’s no technical reason or technical barriers that should prevent money from flowing the same way [as information]. […] The architecture of World Wire is really a cross-border payment network, the magic of which, if you will, the novelty of it, is the ability to send payment instructions saying, ‘Hey, I’m sending you something, get ready.’ And on the other end, the receiver is making sure that who you’re sending it to is not some nefarious actor or bad actor.”
Lund also believes that so many assets should be available when processing cross border settlements. Many blockchain protocols outside smart contract platforms do not allow for the transfer of several assets. IBM’s World Wire is a substitute to R3’s Corda settlement layer, and this also uses Ripple partly.