„Halfway there“: top US executive sees bitcoin price at $150,000 by early 2022
There is nothing stopping bitcoin from becoming a six-figure asset, believes Magentic executive William E. Quigley.
The New York-based executive cites a number of reasons for his bullishness on Bitcoin („Bitcoin’s path to $60,000“), the world’s Crypto Comeback Pro leading decentralised cryptocurrency, whose prices have risen from a low of $3,858 to nearly $58,500 in the past 12 months.
Among them, the scarcity of Bitcoin and growing demand among mainstream companies looking for alternative stores of value for their balance sheets.
An algorithm embedded in the source code of the Bitcoin blockchain reduces the supply rate by half every four years, or after every 210,000 blocks – an event known as „halving“. In the meantime, there can only be 21 million BTC tokens, making the cryptocurrency scarce, which makes it more valuable in the long run as demand for it increases.
Bitcoin has already seen three halvings in the past. During supply cuts in November 2012 and June 2016, the BTC/USD exchange rate jumped from around $12 to almost $1,150 and $650 to almost $20,000, respectively.
The third halving, which took place in May 2020, has so far brought an increase of up to 558 per cent. This has led Quigley to see a bullish fractal.
„We are about halfway through the post-halving bull run,“ the manager said. „So in my estimation we still have a lot to go with Bitcoin. Certainly a hundred thousand and quite possibly $150,000 by the end of this year, maybe by the first quarter of next year.“
There is a „but“
For many, Bitcoin’s scarcity is a ploy to get „degenerate gamblers“ to invest in Bitcoin.
Economist Nouriel Roubini, Euro Pacific Capital CEO Peter Schiff and financial commentator Frances Coppola argue that many cryptocurrency projects have hijacked Bitcoin’s open-source code to develop copycat tokens. That’s a very different matter when you look at gold – a precious metal at risk of being counterfeited but not copied.
Bitcoin’s proponents defend it by bringing the „trust“ factor into play. The community believes Bitcoin more than its copycat rival – thanks to its unmatched network effects with 0 transaction reversals, double-spend hacks and 51 per cent attacks. People see Bitcoin as safe.
Bitcoin demand is growing
This explains why even businesses have begun to embrace the flagship cryptocurrency as an alternative to cash. Tesla, the world’s leading electric car maker, revealed in February that it had added $1.5 billion worth of Bitcoin to its balance sheet and announced it would also start accepting the cryptocurrency for its services and products.
Credit card giant MasterCard announced in the same month that it would integrate crypto tools into its services. Bank of New York Mellon, the first bank in the US, followed suit by announcing it would offer bitcoin deposits through the same platform its customers use for traditional securities and cash.
„The last survey I saw showed that 5 percent of publicly traded companies in the US are considering adding bitcoin to their balance sheets,“ Quigley said. „And the reason they think that is because companies have trillions of dollars of cash – and where are they going to put it? There are government bonds, but $17 trillion of that is throwing off negative yields.“