As three main Bitcoin exchanges in China lock the withdrawal of the currency on their platforms, a strategist with the macroeconomic research firm Lamoureux & Co. is sure that Bitcoin will reach a target of $25,000 or more.
Though the news of the Chinese exchange’s actions have caused the Bitcoin price to drop by almost 10 percent, it is gradually gaining strength again.
Yves Lamoureux states in a piece that most key ingredients found in past bubbles are now present for cryptocurrencies like Bitcoin to appeal to hard asset investors — or a rare chance to get in on a venture capital style bet.
This projection by the chief behavioral strategist is somewhat in line with that shared by the CEO of Netcoins, Michael Vogel, who says there have been predictions about Bitcoin becoming a government world reserve currency by 2020. If and when that happens, it is expected to skyrocket the Bitcoin price, though it isn’t clear how high it would go by then.
Similarly, multi-bln dollar investor Tim Draper, who believes that many investors now prefer to fund Bitcoin startups as a safer long-term option, is of the view that these new startups will increase in value in relation to the digital currency. As a result, Draper stuck to the prediction he had made about three years ago about the increasing Bitcoin value that it would have reached $10,000 by now. He still expects it in a year, though.
Lamoureux noted in a previous article that a central bank-fueled hyperinflation is set to take place in several years with cryptocurrencies as one of the newest benefactors of the hyperinflationary wave.
In this latest piece, however, he likened the projected rise of Bitcoin price to the pattern gold followed when it traded at $300 and employed primarily to avoid the dilution of fiat money to make investors care about keeping their purchasing power.
He notes that nothing has changed in how people trade since 100 years ago as long as they get the same set of incentives. He also touched on the need to convince the majority.
“Whether tulips, housing or tech stocks, bubbles require public participation. And as Blockchain becomes more ubiquitous, it lends credibility to the technology behind Bitcoin. We feel that digital currencies, such as Bitcoin, have now entered a similar cycle.”