Founder of the McAfee computer security company and proof of stake privacy coin GHOST, John McAfee is today facing crypto community chagrin after his three year BTC prediction failed to materialize.
Exactly three years ago today, McAfee went to his official twitter page to establish his Bitcoin price prediction. Asserting that BTC will be worth over $500k in three years.
However, the digital asset is still trading below $10k at press time which has been a very strong resistance level in the past three months.
Perhaps one can question the validity of the previous rallies since Bitcoin is now more liquid than ever, more institutional investors are flocking in by the day, demand is rising steadily and altcoins seem to be reacting positively as well.
Bitcoin’s dominance in the market is being shaken by the altcoin market and likely to fall further after the anticipated rally.
The Bigger Picture Of John McAfee’s Bitcoin Price Prediction
There are underlying fundamentals that are playing against Bitcoin and its expected next wave. First, the world is in the middle of a pandemic that has put pressure on businesses and people’s regular activities. Hence, the odds of seeing more people investing in highly volatile markets and the perceived risky markets like crypto assets are very minimal.
Secondly, Bitcoin is mined through proof-of-work which is marred by high energy consumption at a time when regulators are pushing for cleaner energy projects.
With the escalating trade war, and Bitcoin heavily dominated by the Chinese, Bitcoin price is likely to be affected by such combats.
Another major reason that might be suppressing the bitcoin price is the high cost of transactions and the slow processing speed due to the influx of activities.
Retail traders are moving away from using Bitcoin to using altcoins and stablecoins that offer cheaper transaction costs at a faster speed. This negates Bitcoin a chance to continue shining as in previous years.
However, with the crypto industry heavily controlled by speculative trading, probably McAfee’s prediction is just a few months away from happening.
With institutional investors like Grayscale registering an influx of new crypto investors especially from hedge fund managers, things might be different ahead.
All said and done, one thing remains a huge lesson in John McAfee’s case. Price prediction especially in the crypto industry cannot be guaranteed as no one solely controls the market. “3 years ago today, talk of the town. This is why I don’t make price predictions,” said CZ CEO Binance.