Bitcoin ‘will reach £73,000 value by end of 2021’ in startling claim
Bitcoin: Expert discusses recent drop in cryptocurrency value
Bitcoin values have shown volatility not seen since the cryptocurrency’s crash in 2017 – leaving investors reeling. In early January, Bitcoin surged so much that values hit a record high. On January 5 it was valued at £25,000 before rising again to £30,000 on January 7. But following this, it endured its worst decline since March last year, losing around 20 percent of its value in just two days. The fluctuation seen in the last two weeks has caused worry among investors, although many have come to anticipate Bitcoin’s volatile nature.
But, if one prediction is correct, investors could once again see huge surges.
Morgan Creek Digital co-founder Anthony Pompliano predicted that by the end of 2021, the cryptocurrency would hold a value of $100,000 (£73,000).
He explained his prediction, made in August 2019, to CNN’s Julia Chatterley.
He said: “Whenever we get to a recessive period or kind of slowing growth, central banks have kind of two tools:
“They can cut interest rates and they can print money (quantitative easing).
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“And so, when they do both of those things, it usually takes anywhere between six to 18 months to feel the effect of those tools, and what it’s going to do is it’s going to coincide with the Bitcoin halving.”
Bitcoin “halving” is when the amount of the cryptocurrency being ‘mined’ by users is slashed in half every ten minutes.
Bitcoin mining is the process of creating new Bitcoin by solving a computational puzzle.
Mr Pompliano added that Bitcoin has some benefits over gold.
He continued: “The difference is, between Bitcoin and gold, with Bitcoin, we know exactly how many are getting created, so 1,800 Bitcoin are going to be created today.
“The second thing is we know the total supply available, which is 21 million. So, it’s not: Hey I wonder how much is in the ground. We know exactly how much it is, and we can actually go and audit or verify the software code of the system.”
Just last week, Mr Pompliano predicted that bitcoin will one day reach a value of $1million (£734,000).
He tweeted: “Bitcoin is a 10x improvement on gold. We will one day see a $1M Bitcoin price, which is only 2x the gold market cap.
“Everyone is underestimating Bitcoin’s potential.”
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Britain’s Financial Conduct Authority (FCA) warned investors of the risks that come with bitcoin following this week’s slump.
They said: “If consumers invest, they should be prepared to lose all their money.
“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.
“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”
Express.co.uk does not give financial advice. The journalists who worked on this article do not own Bitcoin.
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