As Analysts Around The World Discuss The $1 Million Price Point, What Could Happen Next?
For as long as Bitcoin has been around, the goal of reaching $1 million in valuation for a single Bitcoin has always been a mission. John McAfee has been incredibly bold about reaching this price point, especially after betting his “manhood” that BTC would see this number by the end of 2020. Though there is a good portion of people that didn’t take McAfee seriously, saying that this has just been a publicity stunt, he’s continued to discuss how serious he truly is.
Even though McAfee is presently hiding from the authorities in the United States, he doubled-down on his bet and even added that he “never loses bets.” He added that there are still plenty of time for Bitcoin to reach his projected price point, saying that “two years is a long time.” Plus, he is not alone in this thought.
Consider Wences Casares, who works with Xapo and is credited as the “Patient Zero” of the spread of the Bitcoin bug. He recently wrote a blog about the reasoning he has for the faith the investor has in reaching the $1 million price point. He has said that there is still a 20% chance that Bitcoin will fail, in his opinion, but the decade of operation and the 60 million customers are worth putting a little faith in the token. He gives the chance of success better odds at 50%.
Still, Casares is not the first one to say that BTC has a good chance of reaching the $1 million price point, as there are many Bitcoin proponents that feel that way. Jesse Lund, who heads up the cryptocurrency and blockchain division of IBM, reportedly spoke with Finder, saying that the Bitcoin has the potential to rally long-term, adding that reaching $1 million as its trading value is definitely in the cards. Satoshis would end up being worth a penny each at that point, and Bitcoin would end up having $20 trillion in network liquidity at that point.
Unlike other analysts, Lund did not say exactly how long he believes it will take to get to the $1 million mark. The path to this price is going to be difficult and it is possible that the number may never happen. The investors will be the ones that ultimately decided that the primary use case goes beyond just speculation. Instead, it needs to be considered as programmable money with the ability to actually adapt to the needs of the real world.
What comes next then? What would the crypto world look like if Bitcoin managed to get to $1 million each? For starters, fiat currency would have a rather difficult time in the market. If BTC managed to reach this price point with the same amount of fiat currency in circulation as it presently had, then both types of assets would end up with the exact same purchasing power.
Right now, the reality of this happening is unknown. As said above, it will primarily depend on how investors treat the cryptocurrency.