Bitcoin at $400,000 a coin by December 2021 in a financial crisis?
I wrote in my last blog:
"Who would have thought back in December 2013 bitcoin would go above $1000. Then years later in December 2017 it would touch nearly $20,000. If the pattern is repeated then in December 2021 Bitcoin may reach $400,000. Sounds crazy I know but so did Bitcoin at $20,000 back in December 2013."
It is difficult for the mind to conceive such large numbers for something that is intangible and is under scrutiny by regulators around the world. However we never imaged the U.S deficit would reach 21 trillion. We never imaged the U.K would vote for brexit 10 years ago. We never imagined 2 years ago that Donald Trump would become president of the United States. What history teaches us is that sometimes you need to accept what may eventual happen. Even if it goes against all conventional wisdom that exists today.
The world functions by patterns and cycles. World war one was followed by world war 2 and will be followed by world war 3. Since 1945 to 2001 we have had 10 cycles of recessions lasting on average 10 months. It is the way capitalism works in that there will always be a boom and then bust cycle. Expansion will always follow recession. When it comes to crypto it is no different. If you see a pattern then it will repeat itself and to an extent increase in magnitude. So when I point out that Bitcoin was at $1000 in 2013 and then increase 20x in 2017 and could increase another 20x by 2021 it is not an unreasonable prediction. Between now and 2021 there will likely be more wars. There will likely be another financial crisis. Would you want to bet your life against any of these events not happening?
Bitcoin has not been tested in a financial crisis. How it could react may shock many people. When there is nowhere to put your money as banks decide to perform bail-in's or simply limit access to your own money in the name of stabilization you need to be worried. There is no appetite from the public for another banking system bail out remember. So a bail in and draconian measures such as capital control to prevent capital flight will be the order of the day.
Not surprising that those that decide to HODL will benefit in time. By 2021 also bitcoin will have become very advanced and likely overtaken the Visa and MasterCard networks for transaction performance. Bitcoin will also likely have become the defacto internet currency with lower transaction fees and faster performance. If you like this article then feel free to enter a comment or upvote me :-)
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