The environment is ripe for Bitcoin to begin a major long-term bull run.
Reson’s are:
1. The Bitcoin halving is coming up
2. Central banks are literally printing money like there is no tomorrow
3. A rising number of investors holding onto their Bitcoins as an investment
4. More and more mainstream coverage of the media
This, among many other reasons, is fuel for the world’s leading cryptocurrency, considering its limited total supply of 21 million units. This could start a supercycle and move far beyond even the most bullish predictions. Classic models point at $80,000 to $300,000 per Bitcoin at the end of 2021 but if Bitcoin really enters a supercycle we could see a lot higher prices. If the world starts to fear that fiat money being devalued, it could become crazy and we could see prices of $1-2 Mio.
Bitcoin is not for everyone. An investor considering to put his money into the extremely volatile asset must be prepared to lose 85% of its value at any time. The swings are huge and difficult to predict. But Bitcoin’s intense volatility acts as a viral loop bringing people into Bitcoin. As the price increases, more people become aware of it and wanting to take advantage of the increasing value. This further pumps up the price and brings more awareness.
Sven Franssen