James Altucher Echoes John McAfee’s Bitcoin (BTC) Price Prediction at $1 Million Valuation by 2020
- James Altucher, Jesse Lund, and Wences Casares explain why a $1 million price level is likely for Bitcoin.
- If Bitcoin reaches $1 million in value, each Satoshi would be worth $0.01.
The cryptocurrency market has been incredibly active in the last few weeks. Bitcoin bulls are rising from the ashes, and there are fewer and fewer people calling for the industry to be shut down entirely. Venture capitalist James Altucher, recently spoke with The Street, discussing the BTC success and suggesting that the rally has just started.
The investor was one of the Bitcoin boosters in 2017, and he predicted that Bitcoin would ultimately reach seven figures. The prediction was made when Bitcoin passed the $10,000 price level in 2017, but Altucher still believes that this value is a possibility, laying out the reasons why he thinks so.
At this point, while there are $200 billion in cryptocurrencies in circulation, there is $200 trillion in fiat monies globally. Altucher pointed out that claiming that value would give each BTC $8 million in purchasing power, an increase of 1,000 times over. The investor sees this value as a true possibility, considering the efficiency and reliability of the technology involved, even though anyone else would probably find this idea drastic and exaggerated.
With that reasoning alone, Altucher says that it would not be farfetched to predict a $1 million value for Bitcoin. Unlike others, he has not given a deadline like other investors and analysts have. Back in 2017, the prediction was that Bitcoin would reach $1 million by 2020.
Along with Altucher, Jesse Lund also suggested that $1 million as the price level would not be as unlikely as people thought. Formerly the lead of the IBM Blockchain firm, Lund noted that he appreciated that each Satoshi would be worth $0.01 if that happened. Furthermore, Bitcoin would end up with $20 trillion in network liquidity, so blockchain-based corporate payments would become a little more likely.
Another prediction of these high values came from Wences Casares of Xapo, who was the “Patient Zero” of the Bitcoin virus that spread throughout the world. He wrote in a blog post that the increase in users and the use cases in the real world have given it good odds of surviving, adding that there is approximately a 20% chance of failure. If Bitcoin reaches $1 million, the Xapo chief executive believes that it will take the industry about ten years.
At this point, as Casares puts it, owning Bitcoin is essential, and choosing not to would ultimately be “irresponsible” of any investor. He added,
“In today’s world where every asset seems priced for perfection, it is hard, if not impossible, to find an asset that is so mispriced and where the possible outcomes are so asymmetrical.”
Presently, Bitcoin is valued at $8,299.86, though it dropped by almost 5% in the last 24 hours.