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As Crisis Is Averted, 3 Takes On The Rise Of Bitcoin

As Crisis Is Averted, 3 Takes On The Rise Of Bitcoin

Bitcoin miners, developers and investors are feeling a wide range of sentiments, ranging from relief to outrage, now that a solution is being implemented to fix the cryptocurrency’s major scaling problem.

BIP 91, as it’s known, solves the issue of the blockchain’s too slow transaction speed by adding a program called Segregated Witness to each newly created block. It requires 80 percent support from the bitcoin miners to be implemented. Any less, and btcoin could be forced to split, or “fork” into two different coins, potentially throwing the system into chaos.

BIP 91 looks like it will get the support it needs though, with a majority of the latest blocks already showing support. Bitcoin’s value has soared 25 percent higher since bottoming at $1,863 on Sunday, signaling the end of weeks of decline.

With crisis seemingly averted, investors are beginning to talk again about just how high bitcoin could climb, some estimates projecting values in the hundreds of thousands.

Van-Peterson Doubles Down, Calls $100,000 Price Target

In December, Saxo Bank analyst Kay Van-Peterson made the bold call that bitcoin would reach $2,000 in 2017. At the time, each bitcoin was worth only around $750.

That report, titled “Outrageous Predictions,” was made on the idea that Donald Trump’s economic policies would rapidly drive inflation. Other countries, not wanting to be tied to the U.S. monetary and banking system, might then seek out an alternative in bitcoins.

By May 20, Van-Peterson’s call was made, albeit not for the specified reason.

Van-Peterson set a revised price target just 10 days later at an astounding $100,000.

The analyst forecasts $500 billion in cryptocurrencies being traded every day within 10 years, with bitcoin making up 35 percent, or $175 billion, of that. Assuming at that bitcoin's market cap would be ten times that, and there will be 17 million bitcoins, each would be worth just over $100,000.

Ronnie Moas’ Relatively Conservative Target

Standpoint Research founder Ronnie Moas recently quoted saying bitcoin could reach $5,000 in the next few months (see Moas' track record here).

Much more interesting though, is the note to Moas’ clients, in which he claimed it will hit $50,000 by 2027. Moas added that former-chief equity strategist for JPMorgan, Thomas Lee, believes it will hit that point by 2022.

He also cited John McAfee, the CEO of MGT Capital Investments, who on Tuesday tweeted a massive $500,000 price target within three years.

Mark Cuban: No Call, But Not Definitely Not That High

Mark Cuban took to Twitter in June to call out the bubble he sees in bitcoin, although he admitted that he has no idea where a pop will land it.

Cuban went on to say that while bitcoin’s valuations are too high, the fact that cryptocurrencies are a valuable resource remains.

Cuban is said to be participating in the initial coin offering of Unikrn.

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