Do you believe in Bitcoin reaching $ 150,000 in 2022?
There is nothing to stop Bitcoin from trying to become a six-digit asset, said Magentic managing director William E. Quigley in a statement. interview with CNN Business.
The New York-based senior executive listed a number of reasons behind his rise in Bitcoin, the world’s leading cryptocurrency whose price has risen from $ 3,858 to another $ 58,500 in the previous 12 months. It included the scarcity of Bitcoin and the growing demand among major corporate houses looking for alternative value reserve assets for their balance sheets.
A pre-built algorithm in the Bitcoin blockchain source code cuts its delivery rate in half by every four years or every 210,000 blocks – an event known as “halving”. In the meantime, there may be only 21 million BTC tokens in existence, making cryptocurrency scarce and more valuable in the long run if demand for it increases.
Bitcoin has had three halvings in the past. Supply cuts in November 2012 and June 2016 saw BTC / USD prices jump from around $ 12 to almost $ 1,150 and $ 650 to almost $ 20,000.
Bitcoin’s post-halving projections. Source: Ecoinometrics
Meanwhile, the third halving – which took place in May 2020 – has followed up by up to 558% so far. This led Quigley to see a bullish fractal.
“We are halfway through the post-halving bull run,” noted the executive.
“So, in my judgment, we have a lot more to offer with Bitcoin. Certainly a hundred thousand and possibly $ 150,000 by the end of this year, perhaps even the first quarter of next year. ”
For many, the scarcity of Bitcoin is a ploy to attract “degenerate players” to invest in it.
Economist Nouriel Roubini, Euro Pacific Capital CEO Peter Schiff, and financial commentator Frances Coppola argue that many cryptocurrency projects have increased Bitcoin’s open source code to develop impersonating tokens. This is something entirely different if we look at gold, a precious metal that is at risk of being counterfeited, but not of being copied.
Bitcoin proponents defend it by bringing the “trust” factor. The community believes in BTC more than its copycat rivals, thanks to its unmatched network effects, with no history of transaction reversals, double-spending hacks and 51% attacks. People see Bitcoin as the most secure public ledger.
Demand for Bitcoin is growing
This explains why even institutions began to embrace the flagship cryptocurrency as an alternative to money. Tesla, the world’s largest electric car maker, revealed in February that it added $ 1.5 billion in Bitcoin to its balance sheet, noting that it would also begin accepting the cryptocurrency for its services and products.
Credit card giant MasterCard announced that it would integrate cryptocurrency tools into its services in the same month. Bank of New York Mellon, the first banking firm in the United States, joined the ranks in announcing that it would offer custody of Bitcoin through the same platform that its customers use for securities and traditional money.
“The last survey I saw showed that 5% of publicly traded companies in the United States would consider adding Bitcoin to their balance sheets,” said Quigley.
“And the reason they are thinking this is that companies have trillions of dollars in cash – and where do they put them? There are government bonds, but $ 17 trillion of them generate negative returns. ”
Bitcoin went into correction mode after reaching a value in excess of $ 58,000. Source: BTCUSD at TradingView.com
He added that companies’ CFOs are concerned about inflation and the decline in the US dollar. They think they would be able to avoid conventional market risks by hedging BTC.