According to the co-founder of Nexo, a crypto-loan provider, Bitcoin could ‘very easily’ touch $50,000 this year. Antoni Trenchev, speaking on the Bloomberg Markets European Open, revealed his thoughts on where the revolutionary crypto asset was headed in 2020.
The Nexo co-founder mainly attributed the rise in the Bitcoin price to the halving event occurring this May. At every previous halving event, Bitcoin has experienced a huge uptick. Antoni Trenchev said:
“I think that very easily we could see Bitcoin going up to $50,000 by the end of this year. We have our analysts at Nexo crunching the numbers, doing very substantial research… it’s the halving coming up because, you know, the rewards for miners are dropping… Last time this happened, Bitcoin rallied 4000%.”
When asked why Bitcoin had not become a widespread and accepted means of payment among merchants, Trenchev replied that Bitcoin has become even more important than that. Now, it is a hedge and a wealth preservation strategy. When the price of Bitcoin increases, people will be thinking in terms of satoshis instead of trading whole bitcoins. Bitcoin is now the new Gold, according to Trenchev, and it is more exciting.
$50,000 is actually quite modest, and there have been several outlandish predictions in terms of the price of Bitcoin in 2020 and beyond. Tim Draper has predicted BTC reaching $250,000 by 2022.
Tom Lee of Fundstrate believes that BTC will reach new highs in the months following the halving event. However, Lee is a notorious Bitcoin bull who often makes predictions and is nearly always wrong. Last year, he predicted BTC to reach $40,000, which never came close to materializing.
Sonny Singh of BitPay says that we will reach a price of around $20,000, and he does not believe that the Bitcoin halving event will be as significant as it was in previous years. There are far more people in the market now and it has evolved.
Despite all the hype and failed predictions, Bitcoin remains the best-performing asset class of the modern era, with incredible ROI year-on-year. The network fundamentals are at all-time highs, with increased hash rate, adoption, second layer solutions, and merchant integration. It is currently trading at around the $8,500 mark with a recent bullish reversal.
A rather unpublicized upgrade is currently being developed which will reduce BTC transaction costs by up to 75%. This could spell the end of many altcoins which were created on the basis of cheaper costs.