The new year has brought positive comments from the crypto sphere, with experts in the field calling out the positives. Lou Kerner, a partner at CryptoOracle and one of the many influencers who has voiced their opinions on the industry, is popular for being a Bitcoin [BTC] bull and his recent words reflect that very fact.
In an interview with Bloomberg, Kerner stated that Bitcoin is on its way to becoming a respectable store of value. In his words:
“Gold right now is an $8 trillion asset while Bitcoin is a $60 billion asset. In my opinion, the value o Bitcoin can go up 100 fold that will ensure that the field of digital assets goes a long way.”
Kerner went on to talk about the recent cryptocurrency price crash, blaming the community who ‘got ahead of themselves’. He stated that capitalism was the main issue that brought the prices down. The CryptoOracle official had earlier said that the field of cryptocurrencies had seen the up-down price movement before by adding:
“For as long as I can remember, Bitcoin has followed this pattern: this continuous rise and fall throughout the spectrum. If you compare Bitcoin of today and Bitcoin of yesterday, you will not see any change.”
During the interview, Kerner went on to say that the industry disruption from Bitcoin will be much more than the disruption caused by the advent of the internet. According to him, Bitcoin is like Yahoo-it is a big thing but not ‘the’ thing. He was also of the opinion that the industry is at the very beginning of its growth and that in 20 years, the cryptocurrency is going to trade at astronomical heights. Kerner stated:
“If Bitcoin becomes a good store of value, then it will hit $100,000. The current dip is normal in cryptocurrencies and is evident if you look at the history of other currencies. Across history, you can see that almost all the coins have dipped to zero.”
Kerner furthermore said that the dollar is a Ponzi scheme and that there was no possible way for America to pay off the trillions of dollars’ worth of debt. He also mentioned that since Bitcoin has no functional governance, it struggles to evolve. This evolution is not mandatory for Bitcoin to become a store of value but rather to become a currency. The Bitcoin bull also claimed that investors need not worry about the prices as Bitcoin is going up in 2019.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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