The bitcoin price has had a record-setting week, and it currently sits comfortably above the $3,400 level following today's segwit lock-in. Since the beginning of the year, the bitcoin price has tripled, and many professional analysts and traders believe it will extend even further. A…
The bitcoin price has had a record-setting week, and it currently sits comfortably above the $3,400 level following today’s segwit lock-in. Since the beginning of the year, the bitcoin price has tripled, and many professional analysts and traders believe it will extend even further. A chief analyst at Goldman Sachs believes it will reach as high as $3,900 during the current wave, while RT analyst and crypto-proponent Max Keiser claims $5,000 is within sight.
Harvard academic and bitcoin investor Dennis Porto believes that, given a few years, it will soar far higher than either of those predictions.
In an interview with Business Insider UK, Porto explained that the bitcoin price could reach $100,000 per coin in February 2021 if it follows Moore’s Law, one of the so-called “golden rules of digital technology.”
According to Porto, rapidly growing technologies have a doubling time, meaning that their effectiveness doubles within a consistent, repeatable timeframe. Traditionally, Moore’s law has been applied to computing technology, but Porto says that the bitcoin price has thus far followed the trend by more or less doubling every eight months throughout its history.
As he states:
Moore’s law specifically applied to the number of transistors on a circuit but can be applied to any digital technology … Any technology that is growing exponentially (i.e., ‘following Moore’s law’) has a doubling time.
Of course, Moore’s Law cannot extend into infinity. Eventually, circuits will no longer be able to hold any more transistors. Likewise, the bitcoin price will not continue to double every eight months in perpetuity; once adoption reaches critical mass, the rate of its price increase must necessarily taper.
Assuming bitcoin continues to follow this golden rule in the near-term, Porto anticipates the bitcoin price will extend beyond $100,000 by February 2021. Using the current BTC supply for simplicity’s sake, this would give bitcoin a market cap of about $1.65 trillion. Needless to say, a $100,000 bitcoin price would thrill today’s investors, assuming they have the fortitude to resist the temptation to sell them.
Well, there would be at least one investor who might not be pleased. That would be John Mcafee, the eccentric software pioneer and former United States presidential hopeful, who famously promised to perform a shocking anatomical act on live television if the bitcoin price did not reach $500,000 by 2020.
Last modified: May 21, 2020 9:37 AM UTC