Spencer Bogart, the General Partner at Blockchain Capital, recently released an analysis on Bitcoin titled ‘Bitcoin is a Demographic Mega-Trend: Data Analysis’. The analysis was based on an online survey conducted on 2029 American adults, concerning their views on Bitcoin. The survey provided insight into their awareness, familiarity, perception, conviction, propensity to purchase, Bitcoin preference rates, and ownership rate, along with a comparison to October 2017 data.
The report stated that 28 percent of people believed that Bitcoin would be used by a majority number of people in the coming 10 years; their answers ranged of ‘strongly’ and ‘somewhat’, which was a rise of 5 percent compared to October 2017.
The report stated,
“Younger demographics have the most conviction in adoption over the next 10 years: Nearly half (48%) of those aged 18–34 ‘strongly’ or ‘somewhat’ agree […] — up 6 percentage points from October 2017.”
In terms of purchasing Bitcoin in the next five years, 27 percent out of the 2029 American adults indicated they were “very” or “somewhat” likely to do so, indicating an increase of 8 percent in comparison to October 2017’s 19 percent.
Further, the report also gave insight into their views on investment choices. Among the 2029 adults, 21 percent chose Bitcoin over government bonds, 17 percent chose the coin over stocks, 14 percent over real estate, and 12 percent chose Bitcoin over gold.
The analysis further reported on Bitcoin ownership stating,
“In total, 11% of the population owns Bitcoin — including 20% of those aged 18–34 and 15% of those aged 35–44[…] To help put the millennial proclivity to Bitcoin in perspective: Only 37% of people under 35 are invested in the stock market - so the data point that 20% of those in the same group own Bitcoin is particularly surprising.”
Spencer Bogart said on Twitter,
“Takeaways: Despite the bear market, the data shows that Bitcoin awareness, familiarity, perception, conviction, propensity to purchase and ownership all increased/improved significantly The results highlight that Bitcoin is a demographic mega-trend led by younger age groups.”
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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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