- by admin,
- Aug 30, 2021
The British cryptographer Adam Back expects bitcoin to reach a price of $100,000 by the end of the year. Comparing the primary cryptocurrency to gold, he praised the former as the better financial instrument.
In addition, Florian Grummes – precious metal and bitcoin analyst – shared a similar point of view. The virtual asset’s USD value would decline to $34-38K, but in six months, it would stand at $100,000.
Interestingly, both of these forecasts coincide with the popular stock-to-flow model that sees BTC tapping $100K by Christmas 2021.
In a recent interview with Anthony Pompliano, the CEO of the blockchain technology firm Blockstream – Adam Back – stated the global acceptance and deployment of bitcoin had reached a satisfying level. With that said, he believes the primary digital asset will trade at $100,000 by the end of 2021.
Back – the inventor of Hashcash ( a proof-of-work system used in the bitcoin mining process) – spoke about the correlation between the virtual currency and gold, too. He gave his preference to bitcoin, saying that in many ways, it outperforms the precious metal:
“The comperison I liked was the competitor to physical gold, because, in many ways, bitcoin is a better physical gold.”
Another similar point of view regarding bitcoin’s future valuation came from Florian Grummes. During an interview for Kitco News, the financial analyst stated that the largest cryptocurrency by market capitalization is on track to hit $100,000 in six months.
However, the German warned investors that beforehand BTC could retrace to a price of around $35,000 before skyrocketing once again:
“What we’ve experienced over the last five weeks is a nice, strong bounce that is [typical] in crypto after a first sell-off [could extend] to $25,000. That is still possible, otherwise, Bitcoin turns around at $35,000 and goes back to $60,000 and the bull market continues. I think $100,000 is probably happening within the next six months.”
The popular Bitcoin stock-to-flow model, which has attracted its fair share of supporters and doubters over the years, also sees a similar BTC outcome by the end of the year.
By describing the stock as the size of existing reserves (or stockpiles) and the flow – the annual supply of bitcoins on the market, the creator – PlanB – determined that BTC’s price could go into a six-digit territory in the next several months.
Despite being more than $50,000 away from that point, PlanB made another promising update earlier. He noted that the stock-to-flow model still predicts $100,000 per coin by Christmas. Somewhat expectedly, he outlined the next few months as “key.”
#bitcoin stock-to-flow model predicts $100K by Christmas, time model (diminishing returns, lengthening cycles) $30K. Next months will be key. Note that color overlay is on-chain signal (not time to halving), indicating we are between bottom (blue) and top (red), in line with S2F. pic.twitter.com/OS0pAKduq4
— PlanB (@100trillionUSD) August 27, 2021
Numerous prominent investors have also predicted that Bitcoin’s price would soon land at $100,000. Jordan Belfort – also known as the Wolf of Wall Street – is one of those individuals. The former stockbroker, who spent a brief time in jail for being in charge of a massive fraud scheme, made a complete u-turn.
While bashing bitcoin and warning investors not to join the crypto bandwagon because “BTC will go away” in 2018, in March this year, he changed his mind to “BTC to $100,000.”
In his turn, Peter Schiff – one of the biggest critiques of digital assets – also believes that the primary virtual asset could reach such a price level. Despite keeping his negative stance on the matter, the economist admitted that not buying BTC in 2011 when he had first heard about it was a “keen mistake:”
“Clearly, I wish I had bought bitcoin when I first heard about it – that was a keen mistake. Could I have put $100,000 in it – yeah I could have. I mean, I put $100,000 in other things that turned poorly.
I could have been one of the bitcoin billionaires now, as obviously I knew about it early on. If I could go back in time, that’s one of the things I would do.”