WHOA! Hold on to your hats, or a least your bitcoins. It seems some savvy people and early investors in some now household names (Snapchat) have laid out a compelling case for bitcoin to reach $500,000 in a little over 10 years. Oh, did I say $500K........yup. We at FintekNews are really bullish on the digital currency but that is really quite astounding. BUT, after you read the reasoning it makes sense. Now, excuse me, I have to 1) go buy more bitcoins, or 2) get ready for the doctors to take me to the "fun farm".
(Bill Taylor/CEO)
"Bitcoin has been the top-performing currency in the world in six of the past seven years, climbing from zero to a value of about $1,190.
But the cryptocurrency isn't anywhere close to its potential, according to Jeremy Liewthe first investor in Snapchat, and Blockchain CEO and cofounder Peter Smith. In a presentation sent to Business Insider, the duo laid out their case for why it's reasonable for bitcoin to explode to $500,000 by 2030.
Their argument is based on increased interest in bitcoin, thanks to: Bitcoin-based remittances
Remittance transfers, or electronic money transfers foreign countries, have almost doubled over the past 15 years to 0.76% of GDP, data from The World Bank shows.
"Expats sending money home have found in Bitcoin an inexpensive alternative, and we assume that the percentage of Bitcoin-based remittances will sharply increase with greater Bitcoin awareness," the two say.
Uncertainty
Liew and Smith said increased political uncertainty in the UK, US and in developing nations would help elevate the level of interest in bitcoin.
"We believe Bitcoin awareness, high liquidity, ease of transport and continued market outperformance as geopolitical risks mount, will make Bitcoin a strong contender for investment at a consumer and investor level," the two said.
Mobile penetration
Liew and Smith believe the percentage of non-cash transactions will climb from 15% to 30% in the next 10 years as the world becomes more connected through smartphones..."