The recent increase in Bitcoin’s value has been historic. The price of cryptocurrency has far exceeded the most optimistic forecasts that were predicted in 2017. Every day, more experts are intrigued by the phenomenon and are starting to consider cryptocurrency as a valid investment. After thorough market analysis, many have made predictions about the evolution of Bitcoin in the coming years.
Wences Cesares and his Jaw-dropping Opinion
On May 24th, in New York, Wences Cesares, CEO of Xapo, announced during the Consensus 2017 conference that the unit value of Bitcoin could easily exceed the million-dollar mark within ten years. Xapo, headquartered in Zug, Switzerland is the largest depository of Bitcoin on the planet.
Cesares’ announcement left the entire assembly speechless. Even the most optimistic have a hard time imagining such a scenario in a reasonable way. Based on Bitcoin’s recent evolution over the last ten years, it has seen exceptional growth. Its value has gone from only a few thousand dollars to nearly $20,000. But, even with a strong conviction that Bitcoin will remain a valuable financial asset with a strong upward trend, it is still very difficult to imagine such a huge increase in value.
However, Wences Cesares seems convinced that this will be the case. According to him, the biggest mistake a person could make is to not invest more than the capital that they can afford to lose in Bitcoin. On the other hand, it is more unfortunate to not have any Bitcoin at all. He even recommends investing about 1% of your wealth into Bitcoin and leaving it for the next 10 years.
More Moderate Opinions from Jeremy Liew and Peter Smith
Cesares’ opinion is, however, one of the bolder predictions about the evolution of Bitcoin over the next few years. Blockchain CEO, Peter Smith and Snapchat Executive, Jeremy Liew, have optimistic, yet much more conservative views about its evolution. They both predict Bitcoin’s value at $500,000 by the year 2030.
Mark Yusko: The Hardest Part has Past
Mark Yusko, the founder and chief investment officer of Morgan Creek Capital Management, published a tweet in September saying that Bitcoin has already overcome the hardest part. According to Yusko, the real gamble was whether Bitcoin could breach the $100 mark. With this view, the cryptocurrency has accomplished a miracle by making it to where it currently sits on the market. In his opinion, it is only a matter of time before it rises to $40,000 or $400,000.
For Yusko, the rise in value will depend entirely on three key factors. Firstly, Bitcoin will have to succeed in establishing itself as a reserve of value. Secondly, it must reach a level of notoriety that is equivalent to gold. And third, it is important that it has a “network effect”.
For the third factor, Yusko seems particularly enthusiastic. So far, the network effect has greatly impacted the evolution of the currency exchange rate and even more, the value of Bitcoin. It is its community that has made it into what it is today. If Bitcoin continues to generate this much excitement, its frantic and promising evolution will not stop anytime soon.