Last week bitcoin pioneer Max Keiser tweeted: “My 2021 Bitcoin target is $220,000 He added: “I’m lifting my short-term target to $65,000.” The reason for his optimistic price prediction was due to multiple factors.
One of these reasons is the upcoming cryptocurrency exchange Coinbase’s planned US stock listing.
The bitcoin expert also suggested that the price hike would be due to a widening of bitcoin supply gaps and the hashrate “heading to 275 EH/s”.
The higher the hash rate the more valuable each coin becomes.
Mr Keiser said another element that might fuel the optimistic performance from bitcoin is the multitude of stimulus packages being released by central banks across the globe to offset the current coronavirus economic woes.
He tweeted that, “money printing exploding and gold price suppression” were major factors in the surging price of the world’s preeminent cryptocurrency.
Geoff Morphy, president of Bitfarms, one of the largest public bitcoin mining operations in the world, concurred that bitcoin was offering an attractive alternative store of value to gold.
Speaking to Express.co.uk Mr Morphy said: “Bitcoin is the latest evolution of value, thousands of years of shifting representations of currency have led us to this point by way of bartering, gold and beyond.
“Today, individuals and institutions are offered highly sophisticated and technical options which present an alternative to traditional stores of currency and investments which now more than ever, are vulnerable to inflation and devaluation.
In 2017, Jamie Dimon, the chief executive of JPMorgan, labelled bitcoin a “fraud” that would blow up.
Announcing to a conference of bankers in the same year, he said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.”
However, in early January of this year, a senior strategist from JP Morgan said: “A crowding out of gold as an ‘alternative’ currency implies a big upside for bitcoin over the long term.
“However, “a convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process.
“This implies that the above $146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”