According to some analysts, bitcoin will potentially hit a price of $300,000 in the coming years even without institutional assistance.
Institutional Players: Their Job Is Overrated
Up to this point, it was long figured that institutional players were necessary to bring a level of legitimacy to bitcoin. This would ultimately be one of the main touches in making the currency mainstream and placing it alongside gold as a store of value.
One of the reasons that many of these investors have been reluctant to get involved in crypto is due to volatility. Bitcoin, for example, rose to nearly $20,000 in December of 2017, but fell to the mid-$3,000 range less than a year later. Many institutional players haven’t shown a willingness to play around with these assets, feeling that there’s a good chance that whatever money they place in the crypto space could potentially disappear as soon as it’s invested.
It’s a valid fear to have, but at the same time, perhaps with institutional assistance, such volatility could become a thing of the past. After all, stocks have remained volatile as well and yet institutional players have shown little reluctance to get involved in company stock shares.
One of the analysts out there predicting big things for bitcoin is Adam Back. Back recently made headlines after a YouTube video potentially pointed him out as a possible candidate for Satoshi Nakamoto, the pseudonymous creator of bitcoin, the world’s number one digital currency by market cap.
While Back denies any involvement in its creation, he did take the time to comment that bitcoin has a lot going for it. He sees big things happening with the currency and its price in the coming years and is confident it could be trading for roughly $300K by the time 2025 rings in without assistance from institutions. He stated:
[Bitcoin] might not require additional institutional adoption [to reach $300,000] because the current environment is causing more individuals to think about hedging [and] retaining value when there’s a lot of money printing in the world… It is causing people to think about the value of money and looking for ways to preserve money. It’s a difficult environment to get any yield.
Following the economic stimulus plan approved by U.S. regulators in late March, many are worried that the U.S. dollar will be subject to inflation and other economic problems, and have thus turned to assets like BTC as a means of securing their wealth against future financial strain, though to be fair, it may be too early to be basing bitcoin’s price five years from now on aspects occurring today.
We’re Not That Far Off
Back further commented:
$100,000 for bitcoin doesn’t seem so far given we already cross the $10,000 threshold a few times when few expected even $1,000 some years back and $10,000 seemed crazy.
