Most people will be able to afford just Satoshis not a whole Bitcoin – Nexo Founder
- Halving will push BTC to $500k this year just like last time when BTC shot up 4,000%
- Anything that comes close to the level of BTC gains has been the rise of US Dollar
- Bitcoin as a payment option “failed to materialize,” the new narrative is that it is the new gold
- CBDC will “revolutionize the way we bank” and question the supremacy of the dollar
In 2019, the first two quarters have been positive for Bitcoin, with 10.34% and 161.50% gains recorded in Q1 and Q2 respectively. The last two, however, have been red with a loss of 25.11% in Q3 and 10.30% in Q4.
Now in 2020, although we made a good start we are down 0.22% to date while trading at $7,320 at the time of writing.
But according to Antoni Trenchev, co-founder of Nexo, a platform that allows users to borrow fiat currency against their crypt holdings, Bitcoin could go as high as $50,000 this year, based on the numbers they have crunched.
“I think that, very easily, we could see Bitcoin going up to $50,000 by the end of this year,” Trenchev told Bloomberg on Friday morning.
Bitcoin halving will push BTC to the skywards
The catalyst for this bull rally will be Bitcoin reward halving to occur on 13 May 2020.
“It is just a hell of a ride, it’s the halving coming up, the rewards for miners are dropping,” said Trenchev.
This would be the third such event that would cut down the miner reward from 12.5 BTC to 6.25 coins. Bitcoin’s inflation rate will also fall from the current 3.69% to 1.80%.
“The last time this happened, Bitcoin rallied 4,000%,” pointed out Trenchev.
Bitcoin is also an incredible asset that is mostly uncorrelated to the overall market. And anything that has come close to anything like the flagship cryptocurrency, Trenchev says has been the rise of the US dollar against the German papermark in the 1920s.
Bitcoin narrative has evolved to be a new gold
As for the fact that Bitcoin hasn't grown as a payment option, Trenchev says this isn’t the main selling of Bitcoin anymore. It has evolved over the year, he said.
The initial idea he explained was to pay for coffees with BTC but that “failed to materialize.” But now, the narrative that is “much more productive is that Bitcoin is the new gold.”
He also pointed towards the 8% spike in BTC price in the aftermath of the US airstrike that killed Iranian general Qaseem Soleimani. The geopolitical tension in the Middle East drove the demand for safe-haven assets that propelled gold prices upwards as well.
Trenchev added that the BTC price would climb to $50k if the digital asset takes over 10% of the gold market. And then eventually, people will be able to buy only satoshis than a whole BTC, as there are only 21 million BTC.
Nexo CEO also touched upon the central bank digital currency where China he said is “full steam ahead” which will “revolutionize the way we bank and it will question the supremacy of the almighty dollar.”
Live Bitcoin (BTC) Price:
1 BTC/USD =$50,487.8982 change ~ 0.69%