News Blockchain is among the latest portals that offer cryptocurrency investors of all shapes and sizes the most up to date information and expert analysis. The website releases content geared towards both experts and people with zero knowledge looking to learn from experts.
The experts running the website include experienced journalists and analysts who keep a keen eye on all the relevant events, conferences, news releases, and forecasts. But the one thing better than merely following the news is being part of the news — and this is where News Blockchain excels. The team of journalists can be found in attendance at the most important events, conferences, and meetings.
Put simply, their mission is to filter out all the useless and irrelevant noise going on in the background so the public doesn’t waste their time with poor information.
Bold Bitcoin Prediction
Most recently, News Blockchain gained the spotlight with a bold prediction about the future of the most talked-about digital currency, bitcoin. According to Mikhail Karkhalev, the price of bitcoin will soar to $100,000 within 18 to 24 months.
He notes three reasons why a six-digit price target for bitcoin is feasible. And the article in its entirety is worth reading. The graphs in particular help to tell the story. After all, don’t they say a picture is worth a thousand words?
History Repeats Itself
The first relates to timing. Every four years the bitcoin network experiences what is called halving in which the block reward is slashed in half. In the four years that divide two halving events, bitcoin passed through an “expansion-peak-recession-trough cycle.”
This played out from 2009 till 2012, 2013 to 2016, and 2017 to 2020.
So what’s next for bitcoin? If history repeats itself, the digital currency will grow, reach a peak, fall down deep, recover to around the midpoint of the prior peak by the time of the next halving and grow to the next peak.
If many stocks can surge nearly 100% a year despite showing already bloated valuations, why can’t bitcoin do the same? This would create a huge potential for the digital currency to make its way towards the coveted $100,000 mark.
Let’s assume bitcoin is trading at an even $10,000 and does appreciate 90% a year, every year. This would be consistent with Apple’s stock appreciation throughout 2019.
Here are a price trajectory and a look at how long it will take to increase ten-fold in value.
Year 0: $10,000
Year 1: $19,000.
Year 2: $36,100.
Year 3: $68,590.
Year 4: $130,321.
So, somewhere in between year three and year four, bitcoin will trade above $100,000.
The third reason why bitcoin will see a surge in value is that it is fundamentally accepted as being equal to other financial instruments. Bitcoin was once a misunderstood cryptocurrency that few understood but now bitcoin futures trades alongside oil and other commodities on the Chicago Mercantile Exchange (CME).
Coupled with exposure to a leading future market, the release of Bakkt, the development of the crypto derivatives market, and acceptance by institutional investors, the price of bitcoin will certainly continue to benefit as global investors scramble for exposure.
Follow The Pros
While not listed as one of Karkhalev’s top three reasons to support a surge in bitcoin, he points out an interesting trend happening behind the scenes. Specifically, more than 60% of all bitcoin in circulation hasn’t moved for more than one year. What does this mean? It’s simple. People who hold bitcoin are waiting for something big. And if anything, the phrase “the trend is your friend” is at play here.
The trend, in this case, is people are hoarding bitcoin. The earlier investors are fine sitting back and waiting for the next big rally to take place.
All the economists, investors, analysts, and “experts” mocked the bitcoin community for once predicting the price of the coin would hit $10,000. They were wrong.
They called bitcoin a Ponzi scheme or naively linked it solely to online criminal activity. They were wrong.