Bitcoin has evolved in the last ten years. And over the years, it has proven that it is something that can truly make a huge difference in the way we conduct transactions. It is something that can change finance. And also, despite the criticisms and even being compared to rat poison by Warren Buffet, a lot of crypto experts in the industry are still optimistic about this.
The reality is that Bitcoin was at its all-time high of near $20K in 2018 and has dropped to just around $6,200 to $6,500 for months now. But what makes Bitcoin interesting these days is the fact that it has become stable. It has become less volatile than your tech stocks such as Netflix and Amazon.
And despite the small movement in Bitcoin price, it has outperformed the stock market. From Europe to Asia, stocks are on a decline. US central bank announced that it is going to increase the interest rate and global stocks are already affected. If you will look at S&P 500 Index, it has lost by 7.28 percent. Also, crude oil has lost around 13.27 percent as well.
Now, if you will ask crypto experts, many are quite bullish on Bitcoin. You have the likes of Tom Lee who even said that it is not even impossible for Bitcoin to reach $25K by the end of the year. But there is a claim that can even sound quite brave at this point. You have Tim Draper who reaffirmed his prediction that Bitcoin is going to hit $250K by 2022. He mentioned this during the panel discussion at Web Summit conference last November 6.
Prediction Last April
Draper made the prediction last April. He said that “Believe it, it’s going to happen—they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!”. He was asked during the summit what is the price of Bitcoin in the coming years. It is then he said that it is going to reach $250,000. He said that “Yes. We are talking…about five percent market share to get to$250,000. That seems like a drop in a bucket and all we need to really do is make it so that Bitcoin can be used to buy Starbucks coffee, and all of a sudden the world just opens up and then say ‘I’ve got this choice’. Do I want a currency that can take from country to country…or do I want one that sticks me in one country or one geographic area and I can’t use it anywhere else?”.
Adoption of Crypto
Adoption of cryptocurrencies is still a long way to go. However, we can only hope that this is going to be the case. Bakkt seems like it is looking to make it happen as it already partnered with Starbucks in order to hopefully make Bitcoin an accepted mode of payment.
But of course, it is easier said than done. Regulatory clarity is something that countries are still working on. There are countries such as China and India that are making it difficult for crypto businesses to prosper.