Adam Back, a cryptographer, and CEO of Blockstream, the company specializing in blockchain-based infrastructure, is a supporter of the proof-of-work system on which Bitcoin continues living up to this day. In a recent interview with Bloomberg, he expressed his view that the BTC price will go up to the $300K level within five years.
Back, an author of the Hashcash verification algorithm behind Bitcoin recently became another person that is being rumored to be Satoshi Nakamoto. In a video released by YouTuber ‘Barely Sociable’, Back stood out as the mysterious figure who created Bitcoin, the video has so far amassed over 305,000 views. Adam Back has denied these reports and asserted that ‘it’s a very good thing that Satoshi stays out of the public’.
Despite the recent negative outburst of Goldman Sachs towards Bitcoin, Back continues to be sure that the cryptocurrency will more than triple in value over the next few years. Bitcoin, labeled as “not an asset class” and claimed risky for institutional investors by the multinational investment bank, will continue gaining in price, Back believes. One reason for that is the uncertainty caused by the Covid-19 pandemic, which puts some of the traditional asset classes under risk.
This fact alone already prompted many investors to switch over from traditional financial market to seek opportunities in crypto. While real estate investment was almost put on hold, bonds are considered to be overvalued – altogether, that makes alternative investments like cryptocurrency much more attractive.
Back points out that many individuals are now thinking of ways how to hedge their investments, what may be the main cause behind upcoming surge in the price of BTC. He also believes that institutional adoption will play the lesser role in such case, since demand generated by individuals within the new landscape of post-Covid world will take cryptocurrency to the new level.
How close to reality is $300K?
Increased inflationary risk of the dollar as a consequence of the global pandemic makes it possible for the price of the digital currency to go higher due to inflation. This will only again prove the point that the price of Bitcoin does not entirely correspond to its real value – or, to say differently, that there are fewer coins produced than what is being traded on the market.
On top of this, the post-halving outgrowths have not manifested clearly yet. Last time, in December 2017, the price of Bitcoin went up +2000% in a matter of days as a result of the second Bitcoin halving. This fact alone bequeaths investors anticipating greater fluctuations in the coming years.