The Case For Bitcoin Hitting 0,000

Posted by Ryan Luke on August 6th, 2019

Cryptocurrencies have changed the world dramatically. It all started with Bitcoin trying to create a transaction system with no third party involvement. Yet, it soon grew into systems like Stellar with an aim to create a worldwide financial network for everyone. Check out xlm news to learn more about this network.

Other cryptocurrencies came up with different innovative purposes and interesting solutions to many issues facing the world. It could be Ethereum with its Smart Contracts and Decentralized Applications, IOTA with its unique Tangle algorithm and scalable system or Tron with its aim to shift the entertainment industry. To find out more about Tron and its advantages take a look at trx coin news.

Yet, as interesting as the new cryptocurrencies are, Bitcoin is still the leader of the market. This year, the value of the first cryptocurrency, Bitcoin has been experiencing major shifts. It has rippled its price in the United States Dollar in the last couple of months, surprising many people. Anthony Pompliano, the co-founder of Morgan Creek Digital, believes that the bullish market of Bitcoin is just starting.

He also predicted that the crypto coin’s price is going to hit USD 100,000 in a matter of two years. After this interesting announcement, Pompliano was asked to go into detail about his prediction in a recent interview with a CNN correspondent named Julia Chatterley. 

Pompliano mentioned that the move towards less strict financial regulations as well as the next Bitcoin halving may stimulate an increase in Bitcoin Price. 

As the price gets into a stage where it is slowly going up, central banks either cut interest rates or print more money. When the banks take these measures it takes up to 18 months to experience the full effects. Hence, this is going to be at the same time as the Bitcoin halving in 2020 influencing the crypto industry directly.

Bitcoin halving is the process when the reward of Bitcoin miners is split in two. This event takes place every four years and on May 18, 2020, the reward will drop from 12.5 BTC to 6.25 BTC. Before this, there have been two Bitcoin halvings in November 2012 as well as July 2016. Between each halving event 210,000 blocks are created. After the two halvings, the Bitcoin price increased dramatically in less than two years 7,976 percent and 2,902 percent respectively.

Halving was determined the day the Bitcoin system went live a decade ago. At first, there were fifty coins created every ten minutes.

Pompliano also talked about gold stating that although it has been regarded as a safe asset for a long time, he told the interviewer that Bitcoin had many advantages over gold. The co-founder of Morgan Creek Digital stated that a major difference between the two assets is the supply. Bitcoin investors always know how much Bitcoin is in circulation and how many exist. We know how many Bitcoins are created daily, while gold is very much about taking chances. 

However, Pompliano had already predicted Bitcoin hitting USD 100,000 once before. It was back in 2017 when Bitcoin was in a great bull run and hit its all-time high at almost  USD 20,000. This time, there are other people also predicting BTC to reach new heights in 2021. 

The Chief Executive Officer of Panera, Dan Morehead, forecasted that BTC would surpass USD 40,000 by the end of the year. On the other hand, many industry specialists came forward with numerous positive predictions. Some of them were saying that Facebook’s new stablecoin, Libra, is going to be among the main reasons that Bitcoin will go up.

At the same time, the United States Congress is trying to create reasonable cryptocurrency regulations knowing that they can not ban Bitcoin and other coins. 

Even though some predictions of Bitcoin price seem highly unrealistic, there’s no point in denying that trading or investing in Bitcoin is very profitable currently. However, managing the investments can be a tiresome task. To do this in the most efficient way, check out the best crypto portfolio tracker guide.