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A new comprehensive analysis has predicted that the price of bitcoin will reach nearly $ 20,000 this year and continue to rise to nearly $ 400,000 by 2030. The researchers also predicted the future prices of many other major cryptocurrencies, including bitcoin cash. ethereum and litecoin.
New Bitcoin Price Prediction
The June edition of the Crypto Research Report (CRR) reveals price predictions for several cryptocurrencies: bitcoin, bitcoin cash, ethereum, litecoin and stellar. This is the tenth publication of the CRR report and covers a popular valuation method used to predict the future price of bitcoin called the “equation of exchange” model.
“The exchange equation model is an absolute approach to evaluating crypto assets,” the report begins. “This means that the model provides a target price at which crypto assets should be valued based on assumptions regarding changes in supply and demand.” Noting that “The absolute valuation approach is inspired by Mill’s exchange equation, later formulated by Irving Fisher,” the CRR team explained:
In this model, the total addressable market share (TAM) can be used to estimate the implied future price of a cryptocurrency.
After examining “all variables and all addressable markets”, the CRR researchers came up with future price estimates for BTC, ETH, LTC, BCH and XLM. They expect the price of bitcoin to rise to $ 19,044 in 2020, $ 341,000 in 2025 and $ 397,727 in 2030. The price of Ethereum is expected to reach $ 331, $ 3,549 and $ 3,644 respectively while the price of bitcoin cash is expected to rise to $ 414. , $ 6,690 and $ 13,016 during the same time periods.
The addressable target market for all cryptocurrencies today is around $ 212 trillion, the report notes. Includes units of account and medium of exchange, consumer loans, offshore accounts, reserve currency, store of value, online transactions, remittances, micropayments, non-bank, gaming, cryptocurrency, ICO financing and STO financing. The biggest use case for cryptocurrencies is as a medium of exchange, the CRR research team found, elaborating:
We believe that bitcoin is still at the beginning of its adoption curve. The price of $ 7,200 at the end of 2019 suggests that bitcoin has penetrated less than 0.44% of its total addressable markets. If this penetration manages to reach 10%, its undiscounted utility price should reach nearly $ 400,000.
CRR analysis estimates that there are more than 40 million cryptocurrency users globally, and the number of cryptocurrency users in a country is positively correlated with the country’s GDP per capita. A high GDP means more cryptocurrency adoption in the country.
Furthermore, “the on-chain speed for most coins is decreasing, while the off-chain speed is increasing, currently at an all-time high,” the report points out, discussing in depth how speculation and saving outweigh all other uses. of cryptocurrencies. They provided “evidence that the growth of speculative trading transactions is faster than the growth in the use of cryptocurrencies to purchase goods and services.” The full Crypto Research report can be found here.
What do you think of this price prediction? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Crypto Research Report
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