Ronnie Moab, an Independent research analyst has once again come out with a surprising prediction on the cryptocurrency. Moab’s prediction exceeded the $100,000 Bitcoin price hit by the Hong Kong trader to go the extra miles expecting the currency to hit $400,000.
Comparing this to the $1 Million hit prediction, it can be said that bitcoin will really give the Dutch tulip mania a wider gap.
Many analysts have come out to give their expert analysis and predictions on the virtual currency. Accessing all the predictions given so far, it can easily be concluded without hesitation that bitcoin will hit at least $100,000 if they really had good stands.
Ronnie Moab’s Prediction
Ronnie Moab based his prediction on the normal and basic economics rule of demand and supply. The rule establishes that the price of any item increases when the demand for it increases. This is a provable rule in any market economy and its effect on the bitcoin trade is no different.
In the light of this, Mr. Moab revealed that Bitcoin available to be mined is 21 million, but some have already been mined and most of them are lost forever. In respect to this, many demands will chase the few available Bitcoins pushing the price up.
“I don’t know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million bitcoin. This mind-boggling supply and demand imbalance is what is going to drive the price higher,” said Moab, the founder of standpoint research.
Moab’s Predictions Cannot be Underrated
Ronnie Moab has an interesting track record when it comes to bitcoin price predictions. His knowledge about price system in economics works perfectly for his price forecasts.
In the middle of the year, he made a prediction when bitcoin was trading $2,600, that, the price would hit $5,000. His prediction on the bitcoin price was likely but the pace at which it passed the $5000 was surprising.
Moab told reporters that bitcoin value will rise again by 500 percent as it did rise in that same percentage after his earlier prediction.
“Bitcoin is already up 500 percent since I recommended it in the beginning of July, and I’m looking for another 500 percent move from here,” he said.
Will the Bubble and Burst Phenomena Reign?
Few research groups and some experts have classified bitcoin as a bubble which will burst just like the tulip mania. However, a close look at Moab’s demand and supply prediction will likely take effect for a long time driving the price up continuously.
The bitcoin price has left a mark higher enough for any other cryptocurrency to reach, and it is on the verge of becoming the most valuable currency in the world.
Even though he did not comment on the fast-rising other cryptocurrencies such as Etherium, Bitcoin cash, and Litecoin, it is likely that his economic price mechanism rule applies to them as well.
If this rule is anything to go by, then the burst prediction by some experts will really take a long time to take effect. With respect to this, the price will jump so high after the 21 million available bitcoin has been mined.
A Strong Disagreement with His Prediction
The vice president of Wealth Management at Singapore-based bank OCBC, Vasu Menon, has shown a strong disagreement with Moab’s prediction. He told reporters that he does not see any driving force pushing the price to that extent.
“I don’t see strong fundamental drivers for this bitcoin rally. I look at bitcoin the same way I look at Amazon,” he said. “The way to play Amazon for the last 15 years was to buy it, hold it, and add on the dips. That’s exactly the way I think people should be playing bitcoin,” he added.
One could also make a case for Moab against the argument of Menon that, the force that drove the price to this extent is the same force that will drive the price to $400,000.
It is very surprising that despite the rise of the cryptocurrency’s value, people still doubt it to be a currency of the future. As Moab got his earlier prediction right, bitcoin lovers are expecting it to hit its new price mark in style.
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- Twitter Set Policies to Join Facebook Ban Cryptocurrency ads - Mar 29, 2018
- Bitcoin is the Future of Finance, Says the CEO of Twitter, Jack Dorsey - Mar 29, 2018
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