A recent Bloomberg interview with a cryptocurrency industry veteran suggests that Bitcoin could “easily” hit $50,000. What’s more, the interview even goes on to suggest that Bitcoin may surge to this price point during the coming year.
Bitcoin has risen by nine million percent during the past decade
This news came on January 3rd, in a Bloomberg interview with Antoni Trenchev. Trenchev is the head of the Bitcoin lending platform nexo.io, commonly called Nexo. Specifically, Trenchev bases some of his price suggestions on the explosive growth Bitcoin has had in the past.
According to Trenchev, Bitcoin has “been an incredible asset uncorrelated to the overall market”. This relates to how Bitcoin’s price performance has grown far more quickly than that of traditional assets during the past decade.
In fact, Bitcoin’s 9,000,000% rise in the last decade has made the premier crypto an incredible profitable asset to hold. Trenchev argues that it is hard to find an analog for this price increase without looking at instances of hyperinflation.
However, Trenchev says that one possible parallel to this surge was the US dollar’s value in Germany during the 1920s.
“It [Bitcoin] delivers systematic asymmetric returns and the only thing that we have seen close to anything like this has been the rise of the US dollar against the [German papiermark] in the 1920s.”
Trenchev: Bitcoin could hit $50,000 during 2020
During the interview, Trenchev was asked how much higher he thought the Bitcoin price could go in 2020. In response to this, Trenchev said that the premier cryptocurrency’s USD price could surge as high as $50,000.
Notably, this is in-line with a previous prediction by the CNBC host Joe Kernen. Back in July, Kernen said that Bitcoin would likely hit a $50,000 price point by May of 2020. Specifically, May 2020 is when Bitcoin’s upcoming block reward halving will come into effect.
Although these predictions may appear overly optimistic, Bitcoin has seen some notable intraday gains. Bitcoin’s price first fell below the $7,000 line yesterday, but has since risen to $7,300.
This price increase comes on the heels of global geopolitical uncertainty, following the recent US airstrike attack against a senior Iranian general in Iran. Furthermore, this attack has also led to a rise in the global price of gold and other “secure” assets, such as Bitcoin.
Moreover, the traditional stock market has instead taken a tumble on these news. However, nothing guarantees that Bitcoin will continue rising in the short term. In fact, some observers predict that Bitcoin’s price may continue decreasing until the May 2020 Bitcoin halving. Nonetheless, it will be interesting to see whether Trenchev is correct or not.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.