Bitcoin is expected to record an explosive growth in the forthcoming year as the digital currency could be worth $1000,000, analysts said.
British-American programmer and businessman John McAfee has considered scarcity of the world’s biggest cryptocurrency a key trigger for a massive upward move by the end of 2020.
“There are only 21 million [coins] that can ever exist, and 18 million [coins] have already been mined. This leaves only 3 million left, and it will take many years to mine those 3 million coins. In the meantime, 7 million coins have been lost forever, and for every coin that’s mined, four are lost,” McAfee said.
Expecting the currency to control 20 percent of all transactions worldwide, the theory goes that the price for a scarce material should rise until an equilibrium is achieved.
“I’m just a very conservative man. I said one [$1 million] and I’m sticking to one,” the cybersecurity vet indicated.
From a technical perspective, veteran chartist Peter Brandt has shared the same viewpoint with McAfee, proposing two extreme scenarios.
Per the weekly chart, the price is moving within a descending channel, said Brandt, clarifying that a break above the upper boundary of this channel would send the signal of the coming bullish action.
“That’s probably the moonshot that Bitcoin bulls, including me, would look for.”
But with a break below the lower boundary of the said channels, the price might test the mark of $5,324 by July 2020, which if it is violated, the road would be paved to a point of investors’ capitulation at $3,200.
“It’s at that point that I would capitulate. Should we violate this level decisively, I would come to the conclusion that Bitcoin story is over and it’s done with,” Brandt noted.
MacAfee and Brandt are not loners shooting for the moon. Venture capitalist Tim Draper sees the coin skyrocketing over the mark of $250,000 by 2023. When reaching “gold equivalence”, Morgan Creek Capital CEO Mark Yusko said the coin could bounce to $500,000 by 2030.