A fresh study by Satis Group, a self-described ”premier ICO advisory firm,” suggests that the price of Bitcoin could skyrocket in the coming five years to nearly a hundred thousand dollars per Bitcoin.
More specifically, this study was published as part of a five-piece series on the cryptocurrency industry. This report, penned by Michael Hodapp and Sherwin Dowlat, was the fourth piece in this cryptocurrency-centric series.
According to the report, many cryptocurrencies will see a marked positive price point trajectory in coming years. Bitcoin will see the most impressive gains, reaching a price of a whopping $96,000 over the coming five years.
In addition to this, Monero is forecasted to reach a price of $18,000 whilst Decred will reach a respectful $535.
On the other hand, the report foresees Bitcoin Cash decreasing to $268.
The reasoning behind this more conservative estimate is that Bitcoin Cash will reportedly fail in its attempt to try and ”inherit brand recognition”, while giving ”minimal technological advantage to incumbents.”
The report also does not give much credence to Ripple’s potential for a future price increase, predicting that Ripple’s price will be a mere $0.01.
The report argues that all crypto assets with misleading marketing, who are not needed with their networks, and which have central validation or ownership will experience a similar trend of retaining a low value in five years time.
In addition to this, Satis Group’s study proposes that Ethereum will lose its lion’s share of its current market dominance, which will reportedly decrease from constituting nearly the entire market to only half in ten years time.
According to the study, the researchers ”acknowledge the strong community around the ETH network” but argue that ”minor flaws in design and governance can expose the relatively low switching cost of overlying networks built on top of it.”
Moreover, the study also gives general market condition estimates for the coming decade, arguing that the valuation of crypto assets required to support the predicted cryptocurrency economy will increase dramatically in the coming years.
Specifically, it is said to increase from the current valuation of around $500 to a mind-boggling $3.6 trillion in the year 2028. Furthermore, it has been proposed that 90% of crypto-assets’ value will be derived from ”penetration of offshore deposits.”
In order to take an in-depth look at the valuation of different crypto-assets, Satis Group used three main models – a ”Top Down” approach based on the quantitive theory of money, a ”Peer-Based” approach which used multiples of ”network-specific metrics to arrive at relative valuations”, and a ”Bottom-Up” method using discounted cash flow models to predict network yields.
Nonetheless, these estimates should be viewed as just that – estimates. Even taken with a grain of salt, however, this study highlights a vehemently bullish view on Bitcoin. It remains to be seen whether it will come to fruition or not.
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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.