Bitcoin market cap to skyrocket to $1 trillion as BTC price hits $55,000 in a few months, says analyst
|- The model used in the prediction puts emphasis on Bitcoin scarcity as the main force behind the surge.
- Bitcoin is a scarce digital asset; investors will continue to shift their funds from gold and silver into Bitcoin.
The last three months have seen Bitcoin remain largely in a choppy market. The sideways trading has seen trading action reduce across the board as traders stay in hibernation. However, according to an analyst referred to as PlanB, the granddaddy of cryptocurrencies is set to rally in the coming weeks.
The analyst uses a price model that takes into account Bitcoin’s scarcity. In his prediction, Bitcoin’s market cap will balloon to a whopping $1 trillion while the coin will exchange at a price of $55,000 post the highly-anticipated May 2020 reward halving event.
At the moment, the number of Bitcoins mined has clocked 18 million. There are only 3 million left to be mined to reach a maximum supply of 21 million. Interestingly, 14% to 19% of the total BTC supply has been lost or stolen. In this case, 15% of the supply is unrecoverable and only 18 million coins will remain in circulation. If the number of circulating tokens is used to divide $1 trillion it gives a valuation of about $55,555.
PlanB model runs on the fact that Bitcoin is a scarce digital asset compared to other traditional assets like gold and silver. At the same time, as this scarcity continues to rise investors will start shifting their funds from traditional markets to Bitcoin. Another driving factor for the rise in Bitcoin demand is the negative interest rates observed around the world and what PlanB terms as “predatory governments” effects.
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