A Look into Anthony Pompliano’s $275,000 Bitcoin Price Prediction

Could Central Banks Possibly Drive Up The Price of Bitcoin?

Bitcoin has taken an impressive lead crossing its $4000 resistance level to trade over $7000 in few weeks. To many readers who have followed the industry for a while, this is not any big surprise as a number of experts saw it coming. In fact, Bitcoin has been predicted to go way above its all-time high.

Anthony Pompliano, Morgan Creek Digital founder made an interesting prediction that Bitcoin stand a chance of crossing the $100,000 price boundary. According to him, Bitcoin has a huge potential of hitting between $110,000 and $275,000 in the next 5 years. This article seeks to analyze the possibility of this prediction coming to pass.

Analysis

The insane rise of Bitcoin price in most cases cannot be attributed to a single factor. Sometimes the price we see is the results of the interplay of multiple causative factors behind the scene. Taking a critical look into Pompliano’s bitcoin price prediction, it can be seen that the $270,000 price trade for the digital asset in five years is possible.

What Makes it Possible?

One major theory that plays an important role in predicting the price of an asset in economics is demand and supply.

According to this law, the price of an asset increases when demand exceeds supply. The price becomes extremely high when supply remains fixed as demand continues to increase. A calculation I did prove that the available supply of bitcoin will reach its maximum supply in 2 years time when all other things are made equal.

Bitcoin was introduced in 2009 with a maximum supply of 21 million. It is ten years now and about 17.6 million of it has been mined. This means 1760000 bitcoins are mined every year. Going by this rate, it will take just two years for the rest to be exhausted when all other factors are made equal.

To every economist, what follows after demand exceeds the supply is nothing but an insane price increase when the commodity involved is subjected to scarcity or has a fixed supply. In light of this, Anthony Pompliano’s price prediction is likely to come to pass.

Putting the concept of demand and supply aside, the possibility of bitcoin reaching that price height is still possible considering the number of institutions weighing the digital asset for adoption. The adoption rate has been impressive so far and more institutions are expected to come on board, and this may be a catalyst for the price increase.

It is also important to note that John McAfee predicted that Bitcoin would reach $1 million dollars by 2020. The possibility of this prediction coming to pass is not far from that of Pompliano considering the factors explained above plays its role.

What's Your Thought On This ?, Let Us Know In the Comment section Below.
♥Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram