Almost everyone is having a go at predicting price targets for Bitcoin.
Right now, one bitcoin trades for around US$4,584. It’s down slightly from its all-time high of US$4,950.72. But a lot of analysts share the view that bitcoin has only one place to go in the long run. Up!
According to Ronnie Moas, founder of Standpoint Research, cryptocurrencies could be a decade-long trend. Forget US$5,000, says Moas. He believes the total value of all cryptographic assets, today valued at $150 billion, will soar to $2 trillion over the next 10 years.
But how did he come up with that number?
As reported by CoinDesk:
‘He begins by looking at the $200 trillion that is currently invested in global capital markets today, including all major asset classes: cash, stocks, bonds and gold. Moas, who also does traditional equity analysis, begins his market breakdown with stocks, which he believes are currently overvalued.’
Moas believes that at least 1% of the US$200 trillion will migrate into cryptocurrencies over the next decade. He even believes that bitcoin could soon have a larger market cap than Amazon.com, Inc. [NASDAQ:AMZN] and Apple, Inc. [NASDAQ:APPL] combined.
‘And if Moas’s market capitalization targets are correct, investors would then receive a 1,250 percent return on their cryptocurrency investments made today,’ CoinDesk writes.
Of course, Moas could be wrong. Investors like Warren Buffett, Peter Schiff and Howard Marks have publicly discredited the digital coin and its potential in the future.
But I can understand Moas’ enthusiasm for cryptocurrencies. Some people have become crypto experts in a matter of months through self-study. But there are also a lot of novices that want to know more about digital coins.
Talking to a friend on the weekend, he asked me whether he should invest in bitcoin. Just hearing about the digital coin months ago, he wanted to know if it was a good investment. I’m betting he’s not the only one who wants to know more about cryptocurrencies.
If you’re part of this group, check out Money Morning’s new report on the leading crypto in the exciting new space, ‘The Secret World of Bitcoin’.
Junior Analyst, Money Morning