(Image Source: Unsplash.com)
Blockstream CEO Adam Back is convinced that $100K and even $10M Bitcoin forecasts are not that far from reality.
Back commented on the thought of one of the leading representatives of the cypherpunk movement Hal Finney, expressed by him in correspondence with the creator of bitcoin Satoshi Nakamoto in 2009. Finney suggested "as a thought experiment" to imagine that Bitcoin has become the dominant payment system in the world.
“The total value of the currency should be equal to the total value of all world wealth. Current valuations of household assets around the world, which I have discovered, range from $100 to 300 trillion. With 20 million coins, each of them will cost about $10 million, ”Finney wrote.
Back noted that “it is closer than it seems” due to rising dollar inflation.
It's closer than it sounds as along the path of hyperbitcoinization, the USD inflation rises, eg aided by Modern Monetary Theory rationale for high inflation, so $1 becomes worth say 10c over a decade or two of monetary craziness, then $10mil/BTC is $1mil/BTC in today's money.
And $100k Bitcoin doesn't seem so far given we already crossed $10k threshold a few times when few expected even $1k some years back and $10k seemed crazy.
“Modern monetary theory justifies high inflation. So today's $1 will cost 10 cents in a decade or two in this monetary frenzy. Then $10 million in bitcoins will be the same as $1 million in bitcoins by today's standards.”
He also emphasized that a few years ago, the current price of bitcoin seemed unrealistic to many, however, the first cryptocurrency more than once crossed the threshold of $10 thousand. This, according to Back, makes the forecast for the price of MTC in the region of $100 thousand "not so far."
Do you think the Bitcoin price will hit $100,000? Share your thoughts in the comments section below! For more news on this and other crypto updates, keep it with CryptoDaily!