Are you still optimistic how Bitcoin is doing recently? If you are somewhat losing hope already, it is a good idea to listen to Bitcoin bulls such as Tom Lee of Fundstrat who claim that Bitcoin reaching $20,000 this year is still a possible scenario.
Recently, initial coin offering advisory company Satis Group believes that there is a chance that Bitcoin’s price may reach up to $96,000 in a span of five years.
Future of Crypto Market
Satis Group published a report that provided an analysis of the crypto ecosystem. The company looked deeper at how the crypto market is valued and whether the valuation matches the actual assets that back tokens. The report was written by Sherwin Dowlat and Michael Hodapp.
There was also a prediction how some currencies are going to perform in the next five years given the fact that it has underlying assets rather than just mere speculation. For instance, Bitcoin, Monero, and Decred could potentially spike in value in the given time frame considering that they are “cryptoassets which apply unique value propositions within deep and viral markets”.
So which cryptocurrency is about to drop? According to the report, coins such as Bitcoin Cash that “attempt to inherit brand recognition and provide minimal technological advantage to incumbents” are expected to drop in the coming years. However, one of the harshest prediction of the report goes to XRP saying that it is even going to drop to $0.01. And this isn’t surprising considering that it is dealing with a good number of lawsuits.
The report mentioned that: “Within the currency networks, we continue to see upside in networks that have cultivated relatively organic growth and community (such as LTC), meaningful downside from networks that have inherited brand recognition and potentially short-lived adoption during hiccups from their fork-parent (such as BCH), and very little value in networks that are misleadingly marketed and not even required for use within their own network (such as XRP)”.
Future of Ethereum
The paper discussed what is called “platform networks” such as that of Ethereum. In the next 10 years, the report predicts that there will be a smaller number of projects that will be built on top of Ethereum. There was even a previous report from Satis Group stating that 86% of crypto projects were built on top of Ethereum.
And because of this, Ethereum “at current levels we still believe ETH to be undervalued relative to the share of cryptoasset market’s TAM it targets”.
Today, no one exactly knows the future of cryptocurrencies. There is also the fact that regulations play a major role as to where the crypto market is headed. For instance, the price of Bitcoin has been affected mainly by the anticipation of the market to the possible Bitcoin ETF. Many believe that once a Bitcoin ETF is approved, this could have institutional investors to finally enter the market.
Considering the report published by Satis Group, should this be a reason that you should HODL on your cryptocurrencies? Should you be investing mainly on Bitcoin and not on altcoins considering that altcoins such as XRP don’t have a bright future?