Bitcoin price prediction; expert believes can hit $100000 in 2020

Bitcoin price prediction; expert believes can hit $100000 in 2020

Dr Julian Hosp is one the major analysis in the cryptocurrency sphere and the author of Cryptocurrencies Simply Explained. Hosp in recent price evaluation expressed that Bitcoin can hit $100,000 by 2020.

He evaluated the stock to flow ratio that measures the inventories in stock to an average of annual production. In short, it gives the detail about the time in which stock moves to the flow.

Dr Julian Hosp pointed out that the gold would take almost sixty-two years (62yr) to reach to flow and silver would take twenty-two years (22yr).

However, the Bitcoin would take twenty-seven years (27yr) to reach to the maximum stock of above seventeen hundred million (17.7m) but this flow would reduce by process of halving.

While analyzing the value of anything the most important factor is production, but overproduction is always bad as it decreases the value. Dr Julian explained that Bitcoin’s case is different than that of gold since if the price of Bitcoin is raised, no one can produce more Bitcoin and the amount of flow will be constant. But, in the case of gold where production can be enhanced as the prices can go up.

Dr Hosp said that as the production of Bitcoin is stable therefore, it is expected that the price will only rise.

The analyst applied Bitcoin SF model to understand cryptocurrency trends. The indicator revealed the success chances of crypto to be ninety-five percent (95%). The current price of bitcoin is between eight thousand and five hundred dollars ($8,500) and nine thousand and five hundred dollars ($9,500).

Currently, the price of bitcoin is lower than gold and if we want to maintain Stock-to Flow ratio stable the price of bitcoin must be doubled. If this happens one hundred thousand dollars ($100,000) is not far to achieve. The interested countries to invest in cryptocurrency would most likely the countries with troubled economies


Published at Sun, 26 May 2019 23:46:38 +0000

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