'This is not a fad, cryptocurrencies are here to stay’
A game of one-upmanship has been raging in recent days when it comes to analyzing bitcoin’s explosive performance and where the cryptocurrency is headed from here.
Then there’s the granddaddy of them all: Xapo CEO and PayPal board member Wences Casares’s million-dollar call from last week.
Saxo Bank’s Kay Van-Petersen looks downright sober by comparison, but still, he’s also looking for big things. He told CNBC Tuesday he sees bitcoin BTCUSD+4.42% reaching $10,000 within 10 years, a quadrupling from current levels.
Then again, his call back in December that bitcoin would top $2,000 in 2017 was also met with a few raised eyebrows. It was trading around $754 at the time.
Van-Petersen told CNBC he expects cryptocurrencies, in general, to account for 10% of the average daily volume of currency trading by that time, which would translate to about $175 billion worth of bitcoin traded every day.
Bitcoin has a limited supply of 21 million, of which 16.3 million is currently in circulation. The full amount is expected to be reached by 2040, but in 10 years Van-Petersen says he thinks about 17 million will be in circulation.
Using a formula where market cap equals ten times the daily volume ($175 billion), Van-Petersen projects bitcoin’s overall market value to hit $1.75 trillion. Dividing that by the 17 million expected to be in circulation brings us to his $100,000 target.
He acknowledged that it’s a rough calculation, but he also said his predictions could be conservative considering bitcoin surged more than 5,000% in 2013 alone.
“This is not a fad, cryptocurrencies are here to stay,” he told CNBC. “There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”
This article was written by By Shawn Langlois and it published by Marketwatch. Here is a link to the original article :
https://www.google.com/amp/www.marketwatch.com/amp/story/guid/9AA44CD2-461D-11E7-980C-8D853B065349
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