Is BTC Really Going To Hit $200K In 5 Years?

As Bitcoin (BTC) crawled back to $41,000 from a $37,000 low on the Asian equity markets rebound, talk of the asset smashing hitting 6-digit prices is on the rise. Upon BTC’s comeback news eruption, Wall Street’s Greg Beard said the coin is bound to reach five times its value —or $200,000— in five years.

Is this really possible?

“Bitcoin Has The Edge”

Beard told Fortune, “It’s hard to know where Bitcoin’s price will be at, say, the end of the year. But if you’re a fundamental-style investor that believes in Bitcoin as a store of value, it should be worth multiples of today’s price in five years, I’d say at least five times.”

With the dollar suffering every dent inflation wants to inflict, the 50-year old investor —as well as others of the best breed— sees BTC as an ideal protective asset that will be aided by a compounding effect as investors’ interest is rising.

As comparisons with gold are drawn, Beard asserts that, despite the precious metal’s 2000-year success story, when prices jump abruptly, more of it shows up. In contrast, the number of Bitcoin is permanent and remains at 21 million.

He further says that BTC “has the edge over gold” since it can be destined to no-friction buying and selling of goods and services.

According to Ransu Salovaara, CEO at Likvidi, there is little idea about how much gold there is in terms of reserves and gold supply that can be used to hold back or sell to the market.

“What we do know is that at certain gold price points some mining operations will become profitable enough to start digging again. Therein lies the big difference between Bitcoin and gold,” he says, and adds that “Bitcoin supply was hardcoded 10 years ago by Satoshi —I think $200,000 Bitcoin price in 5 years is pretty conservative.”

A Safe-Haven Asset?

The bear market talk surrounding BTC might be not it since the coin has been on the rise since January 23. Looking at the lows, says Ruud Feltkamp, CEO of crypto trading bot Cryptohopper, BTC ends up a little higher —so, the issue is whether the trend will last.

However, the market looks positive. The limited effect that the Russia-Ukraine war has had on BTC only goes to show how macro issues hold no sway in its price and, on the contrary, the coin ends up becoming a safe-haven asset.

“If you live somewhere with high inflation, it’s clear again and again that crypto is a serious alternative. And with 15% of Americans still in crypto, the amount of potential in price movement remains enormous,” Feltkamp says.

Bitcoin’s might can be further attested by the fact it came back to $41,000 amid such market instability.

This price level remains an important psychological barrier, “and the fact that it was reclaimed despite the backdrop of mounting geopolitical and macroeconomic pressures actually shows Bitcoin’s relative strength,” says Mikkel Mørch, investment fund ARK36’s Executive Director.

“A New Monetary Order”

Similarly, the intraday volatility of recent cannot be attached to the coin reacting to the Fed’s rate hike announcement, since the crypto markets had already added this to the price equation.

In fact, Mørch says, “the volatility hasn’t been particularly high if we take into account a barrage of largely negative news over the past few days with Covid cases rising and China’s Shenzhen province going into lockdown, which will surely aggravate the supply chain issues.”

The country’s real estate and tech industry crisis is also bound to add more uncertainty to the global markets.

Given this outlook, since BTC has bravely withstood uncertainty from every front, institutional investors are more likely to see the digital coin as a safe haven or a store-of-value type of asset.

The Western sanctions on Russia that include freezing the nation’s central bank reserves could yield the diminished status of the dollar as the global reserve currency.

“If we are seeing the beginnings of a new monetary world order with a weaker dollar, Bitcoin will likely be one of the long-term beneficiaries of this shift. Taking that into account, there is little wonder why banking industry insiders are predicting that BTC will be worth between $100-200K within the next few years,” Mørch concludes.

Article by ValueWalk