The anti-virus software pioneer John McAfee has presented bullish assumptions in favor of Bitcoin price (BTC) – John McAfee thinks BTC could hit $1 million level by 2020. Though the anti-virus software pioneer had several reasons to support his bet, he also suggests investors invest only the money they can afford to lose – which signifies that he isn’t too confident in its price prediction strategy.
John has based its price target estimate on four key factors:[1]
- The limited number of bitcoins, almost a total of 21 million
- Higher bitcoin adoption.
- A room for growth, expansion, and demand.
- Its market cap is short of the market cap of other traditional asset classes.
He further believes BTC price to increase at the rate of 0.4840957034310259% per day to attain the price target of $1 million. John McAfee assumes the price will rise daily at this rate, and calculating a compounded rate for the remaining number of days until December 31, 2020.
John McAfee Ignored Key Factors That Could Result in Complete Losses
While John has highlighted several relevant facts that could support the price, he has neglected regulators role in crypto markets along with several other aspects, such as underlying value, criticism on its usage from criminals and the adaptation as an alternative currency.
Regulators will play a key role in settling the price for cryptocurrencies; they are taking steps that could wipe off billions of dollars from crypto markets. Based on research reports, criminals are accounting for almost half of the trading volume – which is at risk following regulators strategy to play a meddler role.[2]
Major players had rejected to adopt currencies due to its lack of underlying value; they consider digital currencies as speculative investments. Bitcoin, Ripple and other cryptocurrencies aren’t backed by real cash assets such as gold or foreign exchange; these coins mined through specific techniques and distributed to the general public. The market opinion is divided on the behavior of digital currencies and the time will tell how accurate John was in creating bullish bet.
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References
- ^ four key factors (www.investopedia.com)
- ^ Based on research reports (cryptocurrencynews.com)
- ^ Twitter (twitter.com)
