The Bitcoin Rally To $1 Million
Bitcoin’s diehards have long seen $1 million as the holy grail for the BTC price. John McAfee, for instance, proudly claimed that if BTC doesn’t reach seven figures by the end of 2020, he would consume his own family jewels… and record it too. While many took McAfee as a joke, claiming that this was just a publicity stunt, he has since doubled, tripled, etc. down on this ‘bet’, taking to public forums to claim that Bitcoin reaching this astronomical price figure is totally logical.
In fact, just recently, McAfee, who is currently on the run from U.S. authorities, opined that he’s sure that BTC will hit $1 million by December 31st, 2020, adding that he “never loses bets.” ‘Rebutting’ his cynics, the technology pioneer added that Bitcoin breaching such a price point is possible because “two years is a long time.”
And interestingly, he isn’t the only one that thinks this. In a recent post on crypto hedge fund Ikigai’s blog, Kana and Katana, Wences Casares of Xapo, described by many as ‘Patient Zero’ (he spread the Bitcoin bug), laid out his reasoning for such a prediction. He claimed that while he believes that the experiment-esque BTC has a 20% chance of failing, its 10 years of operation, with “60 million and rapidly growing holders,” and the continual use in the real world (movement of $1 billion in value/each day), Bitcoin has a good chance of succeeding.
And if it does, the Xapo chief executive noted that each unit of the cryptocurrency could surmount $1 million, all within a decade’s time. This is 200 times what it is valued at today. With this in mind, he noted that it is nonsensical not to own Bitcoin, calling it a “unique opportunity for a non-material exposure to produce a material outcome.” He added that not owning any of the digital assets may very well be almost “irresponsible.” In conclusion, Casares explains:
In today’s world where every asset seems priced for perfection, it is hard, if not impossible, to find an asset that is so mispriced and where the possible outcomes are so asymmetrical.
Far From The First To Have Called For Seven Figures
Casares is far from the first to have called that BTC could see seven figures in the future. As reported by Ethereum World News previously, Jesse Lund, the chief of IBM’s cryptocurrency and blockchain division, divulged to Finder that BTC has a dramatic potential to rally over the long run. In fact, he exclaims that Bitcoin trading at $1,000,000 isn’t exactly off the table. The IBM executive even quipped that he likes that figure, as each satoshi would be valued at $0.01 at that point. Fundamentally, he added that a seven-figure valuation would give Bitcoin $20 trillion in network liquidity, making corporate payments on the blockchain a possibility.
But Lund didn’t give an explicit timeline for this call, making it clear that the road to seven figures is going to be onerous, potentially nigh impossible. He exclaims that for Bitcoin to reach $1 million and beyond, investors will need to determine for themselves that Bitcoin’s primary use case isn’t speculation, but as a form of programmable money that can be adapted to the real-world.
What Would $1M BTC Look Like?
That begs the question, what exactly would a $1 million BTC look like. Well, it wouldn’t be pretty, for fiat currencies anyway. Per data from industry sources, if the amount of fiat in circulation is the same now than when BTC breached the aforementioned price point, the purchasing power of the two would be equivalent.
But is this really possible? At this point, no one is all too sure.
Title Image Courtesy of Thought Catalog