Million Dollar Bitcoin

CEO predicts bitcoin could rise to between $100K and $1 million

Steve Kirsch, the CEO of digital signature company OneID, went on the record at a Future of Money conference on Monday and predicted bitcoin prices could rise another 100 to 1,000 times their current levels. That would put bitcoin anywhere between $99,000 and $990,000.

million-dollar-bitcoin2Kirsch “cited relatively low consumer awareness of Bitcoin as a key reason for its potential growth” (per MarketWatch). I agree, but still his prediction sounds optimistic on the high end. If bitcoin soared up to $1 million each, that’d put the total market cap for bitcoin around $1.2 trillion.

We’d have to see some major institutional buying to get to that level – I’m talking central banks, investment firms and pension funds. And, that would all assume that governments don’t work together to quash bitcoin, which I hope they don’t.

Still, I’m optimistic that we’ll see bitcoin north of $10,000 – particularly if the SEC gives the greenlight to the Winklevoss’s Bitcoin ETF. A bitcoin ETF would let everyday investors, as well as aggressive hedge funds, move in and out of bitcoin as easily as buying stock in say Coca Cola (KO) or Starbucks (SBUX). They could even leverage their bets. It would legitimize bitcoin and could potentially push the total market cap for the coins over $100 billion (which would start moving us toward bitcoin at $10,000 each).

I’d be remiss if I don’t point out opinions from the bears, though. Finance instructor Mark Williams at the Boston University School of Management told the Washington Post that he expects bitcoin to fall below $10 in the first half of 2014 (source).

Williams argues that we’re in the “pop” phase of a tulip-style mania. “[With any asset bubble, there are three stages, growth, maturity, and pop.] When you think about this bubble the maturity stage really hit in November and December of this year. As more information comes out about whether this is truly a virtual currency or a virtual commodity, you see that it’s really a virtual commodity.”

I disagree if only because I’m still yet to meet a single person who actually owns bitcoin (besides myself). How can you have a mania where the public isn’t participating? Right now, bitcoin is a fringe asset. If it ever goes mainstream, we’ll be looking back at bitcoin at $990 wishing we would have bought more.

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1 comment

  1. Pingback: Ripple price prediction (XRP) |

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