IBM’s crypto chief Jesse Lund is optimistic about the potential of cryptocurrency. In fact, his optimism led him to claim in an interview on the 20th of February, that the price of bitcoin will hit $1 million. Lund also suggested that the higher the price of a crypto asset is, the more profitable it will be. This claim is an insinuation towards the fact that people should pay more attention to the utility of crypto assets rather than merely focusing on its moving price. Since, speculators are perceiving the value of bitcoin incorrectly, its price is being negatively impacted. CEO of BitPay also backed the theory of speculators hurting the price of bitcoin.
Moving on, later when Lund was inquired about the expected price bitcoin will reach on the New Year’s Eve, he declared that he foresees the price to hit $5,000, albeit, his future prediction is quite different.
According to the insight Lund has shed light on, we can conclude that once the price of bitcoin gets high enough, financial institutions will start taking it more seriously, providing bitcoin with a massive influx of investment.
The key takeaway from this statement is that it’s not the norm for a notable personality from the old-world of technology to forecast such a massive price. This sure says a lot about the potential of cryptocurrency. However, since bitcoin’s price plunged last year, taking a dip on a 10-minute article to make investment decisions is the fast track to losing money. So, let’s take a look at evidences put forth by Fuad Ahmed that actually speak volumes in favor of the statement given by Jesse Lund, and suggest that even though last year wasn’t fruitful, the upcoming years will be profitable for bitcoin.
1. Widespread institutional adoption
Ever since the doubts pertaining to the long-term validity of cryptocurrency have been lain to rest, plenty of industries have stepped in the cryptocurrency space. While, there are plenty of big-name companies that have gotten involved in cryptocurrency, one of those big names consist of Fidelity. Fidelity is a well-reputed financial services organization whose assets totaled $2.5 trillion in March 2018. The important thing to notice here is that the trillion-dollar corperation inaugurated Fidelity Digital Assets in October 2018, which led to a groundbreaking rise in the demand of bitcoin and ethereum. In addition to that, the CEO of the establishment, Tom Jessop is considering setting up a startup which will be backed by other cryptocurrencies depending on their potential and worth.
Apart from that, technological visionaries like Morgan Stanley are of the view that in the upcoming years, cryptocurrency will definitely see a surge and it is basically the future of currencies.
2. Development of Security Token Offerings (STOs)
Security Token Offerings are quite promising. In fact, they are the next big-thing in the crypto space after ICOs. Yes, ICOs faced a downfall after the security concerns people were facing. However, STOs don’t have safety problems associated with them.
STOs are actually used to tap into the larger industry. Unlike ICOs, STOs represent a stake. So, the investors in STOs would actually end up owning a portion of a company. STOs are expected to gain attention of a pool of investors this year, giving cryptocurrency a boost.
3. Advancements in the lightening network
Ten years ago, when Bitcoin was brought to the limelight by inventor Satoshi Nakamoto, the main concern of investors was its scalability. In 2018, ten years later, this problem still didn’t see any solutions. So, what does scalability exactly mean? Well, ever since the inception of bitcoin, it has only been able to process maximum 7 transactions per second. While, initially when the number of transactions was low, this number wasn’t that big of a problem. However, now that more people are adopting it and the number of transactions have increased, the scalability has become a problem. The persistence of this problem would mean that bitcoin wouldn’t be able to give competition to other players in the market such as Visa or Mastercard that handle up to 24,000 transactions per second. That number is way higher than what bitcoin currently offers, however that is bound to change. With developments in the lightening network, the number of transactions bitcoin carries out per second are expected to increase significantly to a point where it can give competition to its competitors such as Visa.
4. Bitcoin Halvening 2020
If you are a cryptocurrency evangelist then it is unlikely for you to be unaware of the bitcoin halvening of 2016, which surged in December 2017, reaching a record-breaking price of $19,000. Visionaries expect the price of bitcoin to gradually increase as it reaches halvening of 2020. So basically, it is only a matter of time before the massive price of bitcoin is unveiled.
IBM’s crypto chief added a lot of credibility to the prominence of bitcoin. Even though, the last year was uncertain for this cryptocurrency, it is bound to see new heights in the upcoming years. Since we believe it is a risky proposition to dive in head-first in a growing financial trend, we have compiled four reasons why we expect bitcoin prices to rise and reach an astounding $1 million mark. Although, it is debatable whether we will be seeing such a rise in bitcoin’s price in the upcoming months, this is bound to happen sooner or later.
The key takeaway here is that since bitcoin halvening 2020 is coming up, it is a great time for visionaries to invest in bitcoin.