In a new interview, Bitcoin investor and ShapeShift founder Erik Voorhees predicts that Bitcoin will soar as high as $200,000 in 2020.
He also addresses why everyone is so consumed by speculation and Bitcoin’s price, which often appears to get more attention than the technology and the emerging use cases.
Voorhees tells YouTuber Crypto Beadles,
“It’s what brings people in. It’s what brought me in. I saw this article about Bitcoin and saw how it had gone up like 500% in a few months. Having known nothing about it, I clicked on the article because that sounded interesting.”
“Nothing has grown as fast in value as Bitcoin with the exception of a few private companies but they didn’t have their price ticker public from the very start. Imagine if Facebook’s share value was public and live in real time from the very first day that it got started. It would have been a fascinating assent. So yeah, it gets a lot of people interested. It pulls people in.
A lot of people only care about the price and that’s not the purpose. The price goes up because of the meaning behind it. Why is it rising? It’s because crypto is actually an amazing technology that’s changing how finance works around the world, and that’s far more interesting than the daily ups and downs – but I’d be lying if I said it wasn’t exciting when it’s rocketing up.”
His latest price prediction pushes Bitcoin into the stratosphere as the next bubble, he believes, starts to grow.
“I think we’re in the next bubble, at this point. We’re starting the next bubble, and I think this bubble ends between $100,000 to $200,000 per Bitcoin sometime in 2020. That’s what I would predict. But markets are great at making fools of people so we will see what actually happens.”
Having been in the market for over eight years, Voorhees has a long lens on how outlandish a 20x prediction within such a short time period can sound.
“I remember debating with people on the internet forums back in 2011 — could Bitcoin ever be worth $100? We’d have these ferocious debates about it. What that would take, how much adoption, how realistic that was. And then the really crazy ones said maybe it will get to $1,000. And it didn’t take that long. It felt like a long time in the process but here we are. It’s eight years later and we’re at $12,000 a Bitcoin. Totally crazy.”
Voorhees says adoption happens because people want to spend their Bitcoin wealth on real things.
“You can talk to the BitPays of the world, the merchant processors. You can talk to people that have crypto — they generally spend it most when it’s mooning, because they’re becoming wealthier. and because they want to use some of that wealth to buy real things.
Bitcoin ultimately is only useful because some day it will buy something, whether that’s tomorrow or 50 years from now. So at some point, you convert bitcoins into real things that you want to consume like a house or food or a car or entertainment or whatever. And when it’s mooning, that’s when people feel that wealth effect and when they actually do a lot of their spending with crypto.”
Voorhies says Bitcoin will become increasingly stable as the network gets bigger, and that he can imagine people wanting to collect their salaries in the digital currency rather than holding it in a fiat currency that can be debased.
“Twenty years from now I don’t think [Bitcoin] will be that volatile. I think it’ll be less volatile than gold is today.”
Crypto Market Attempts Bullish Breakout, Gains $10 Billion In 3 Hours
It’s mid-week and the bulls have continued to show their strength. Since the bears descended on the market last week, they have wiped out more than $50 billion. One of the worst affected coins has been Ethereum but the crypto market has now gained over $10 billion in the last few hours, pushing its market cap to $270 billion at press time.
Ethereum, which is the largest altcoin by market cap, has in the past few days suffered losses in double digits. In the last few hours, the coin has reversed this trend and is currently up over 8%. This has seen the asset climb just above $215.
Massive Gains Across The Market
Bitcoin, the crypto boss, had dropped from highs of $12K to under $10K as we have been reporting. At the time of press, Bitcoin is striving to get back above $10k as its currently up over 4% and trading at $9,914.
For a few hours yesterday, the bulls seemed to have made a comeback. Bitcoin recorded moderate gains for some time but the bears soon put a stop to that. During this time, Bitcoin climbed to nearly $11K before sliding all the way below $10K.
XRP, on the other hand, is also headed upwards as it records a gain of more than 7%. In the last couple of hours, it has slipped above $0.31. This story repeats itself all through the market with almost all cryptocurrencies in the top 10 gaining more than 10% and hitting back above key support positions.
For some analysts, as we reported, these numbers come as no surprise. However, they warn that the continued bearish trend of the same, could trigger reverse sell-offs and see prices fall below expected levels. For Bitcoin, staying above $9K is key for its next major bullish move.
Crucial For Ethereum (ETH) To Maintain $200
Like most altcoins, Ethereum is currently above a crucial support position. This is possibly because altcoins continue to lack strong support. Most investors are currently holding Bitcoin as its dominance continues to edge closer to 70%, leaving altcoins vulnerable to massive drops.
What Triggered The Drop?
The latest drop came in the wake of new aim at crypto and in particular, Libra. Following the criticism from U.S President Trump, the market seemed to do well but soon broke down.
Since the President’s remarks, there has been a renewed examination of crypto across different government organizations. This has seen a lot of speculators, who were accumulating during the most recent rally, cash-out.
Crypto Market Drops $20 Billion In 1 Hour Following Facebook’s Libra Senate Hearing
Bitcoin price has been on a downswing since July 10th, with minor uptrends in between. In a period less than a week, bitcoin has plunged to trade below $11,000 which many traders believe is a crucial support level for swing and day traders.
Bitcoin’s Outlook In The Short-term Remains Bearish, Analysts Say
Yesterday the US Treasury Secretary held an official briefing at the White House, as ZyCrypto reported, where he addressed the US Government’s stance on Facebook’s Libra and crypto regulations. He stated that government regulators would beef up their oversight of the cryptocurrency ecosystem. Upon the release of the surprise briefing, bitcoin price raced to $11,000.
However, bitcoin is currently consolidating below the $10k level. The bears are attacking hard making it a real struggle for bitcoin to climb back above the $11,000 support level. At press time, the king crypto is trading at $9,698.55 and further correction will be seen if it does not break the $9k resistance, which is more than likely.
Josh Rager, popular crypto-analyst and trader has been keen on this price movement on a 4-hour chart noting: “A quick drop in price over the last two candles with the area to watch as support as $10,191. On the 4 hour chart, as long as it closes above that level it will continue to make higher-lows and maintain a ranging pattern. Close below that area and it’s bearish.”
Another popular trader-cum-analyst, Nick Cote stated via twitter that bitcoin remains bearish in the short-term until it recovers back to $11K. He said, “Bearish throwback respected at $11,000. Bullish support respected at $9,700. Bearish bias remains until we re-claim the $11,000 level,”
Altcoins Are Biting The Dust, Again
A bitcoin sell-off often ignites a waterfall event for top altcoins like ethereum, Ripple’s XRP, Litecoin, EOS and Bitcoin Cash. Presently, it’s no different. Case in point, ethereum, the top altcoin, has dipped by more than 13% to trade at $200.10 at press time. Litecoin (LTC) is now trading below the key $80 area and is down by 14.66%.
The Road Ahead For Bitcoin
In the short-term, further scrutiny from regulators on Facebook’s Libra is anticipated and this could make existing investors wary of taking a leap of faith. Hence, in the short-term, bitcoin traders and analysts are of the opinion that the price trend remains bearish.
Crypto Analyst: Bitcoin Stock-to-Flow Predicts Leading Crypto Will Shatter $10 Million – BTC, Ethereum, XRP, Litecoin Forecasts
A crypto analyst known for applying the stock-to-flow ratio to Bitcoin has revealed a set of massive calls on where the price of BTC may be heading.
Stock-to-flow is typically used to analyze precious metals, and calculates the current supply of a given commodity divided by the amount produced per year in order to predict future value. When using the ratio to determine where Bitcoin may be heading, the leading cryptocurrency’s limited supply of 21 million coins becomes a key factor.
In a new viral tweet, PlanB tells his 22,000 followers that after making some tweaks, his stock-to-flow projection now tracks Bitcoin’s price history with 99.5% accuracy, and forecasts BTC will hit $1 million in less than a decade before ultimately hitting $10 million.
“This is becoming scary: Using October instead of December data, stock-to-flow model fit improves to 99.5% R2!
Model error was mainly caused by November 2013 and December 2017 all-time highs, so sampling without the ATH gives less noise. Predicted Bitcoin prices increase: $100K (2020+), $1M (2024+), $10M (2028+).”
At time of publishing, BTC is up 3.77% at $10,882 according to COIN360. Ethereum is down 0.55% at $234.46, XRP is up 1.61% at $0.3170 and Litecoin is up 3.11% at $92.36.
Technical analysts at large are tracking Bitcoin’s potential recovery with the leading crypto on the rise after briefly dipping below $10,000.