Bitcoin has a difficult time right now, as the recent outbreak of coronavirus has significantly diminished its price. Some people are sure it is temporary, and Bitcoin will again reach its previous digits. Almost everything has been affected by the virus.
Meanwhile, the Kraken cryptocurrency exchange believes that the price of bitcoin is capable of reaching $350,000 over the next 25 years, which will be caused due to a massive influx of capital.
The Kraken cryptocurrency exchange released a report entitled How ‘The Great Wealth Transfer’ can give Bitcoin an increase of $1 trillion dollars, in which it tries to predict a rise in the price of cryptocurrency Bitcoin, provided that the wealth accumulated by generation X will, for the most part, be transferred to the millennials by inheritance.
So, according to the report, over the next decade, Bitcoin will be able to go through the main phases of universal acceptance.
During this period, the United States will undergo a shift between generations of wealth in the amount of $68.4 trillion, as a result of which, a significant part of the wealth will be invested specifically in bitcoin.
‘The Great Acceptance’ of Bitcoin
Kraken believes that generations of Millennials (aged 24 to 39 years) and generation X (40-55 years) will pump Bitcoin's capitalization of nearly $1 trillion over the next 25 years, as both generations have reached a consensus on cryptocurrency status. This transition period at Kraken has been called the ‘Great Acceptance of Bitcoin’.
Based on the forecast of margin support, over the next 25 years, the price of bitcoin will range from $68,000 to $706,000. The main factor in price variation, according to the exchange, will be the tax rate on hereditary property.
At the same time, Kraken believes that the average price will stop at around $350,000.
So far, Bitcoin is doing differently. Despite the fact that just over a month is left before the May halving, the recent collapse of the stock and cryptocurrency markets has shaken the status of the largest cryptocurrency by capitalization.
And even though some still see in the collapse only advantages and a way of accumulating assets at a cheap rate, others regard the upcoming financial crisis as a significant threat to bitcoin and the entire cryptocurrency market.
Of the most pessimistic scenarios, there are forecasts of a collapse in the Bitcoin rate up to $0. And while the head of Binance promises to prevent such a catastrophic fall and predicts the growth of bitcoin capitalization to $ 2 trillion, doubts on the cryptocurrency market have not disappeared.
In general, it seems very unlikely Bitcoin will suffer greatly. It is only a temporary situation caused by Covid-19. People may find it more beneficial to purchase Bitcoin at the current price and wait for the situation to be resolved, and Bitcoin’s price returns to its ordinary rate. It is undoubtedly a future of the entire financial system.