This week, bitcoin already achieved a new annual high of nearly more than $ 8,000, the highest price since May 7, 2018. Due to the rapid growth in 2019, some analysts state that bitcoin and other cryptocurrencies will again face a major correction, but Jihan Chu - co-founder of Kenetic Capital - expects an explosive rise. In an interview with Bloomberg , he predicts that the price of bitcoin will rise to a value of more than $ 30,000 before 2020. He gives three reasons for this enormous potential growth.
Large companies show interest
The first reason why the price of bitcoin will rise according to Chu is because of developments from large organizations such as Facebook, JP Morgan and Fidelity in cryptocurrency. We wrote in this article last week why this is good news . Because large companies release their own cryptocurrencies, the general public is suddenly introduced in a technology that is new to them. The step to purchase bitcoin suddenly becomes much smaller as a result.
A new investment option after IPOs
After the failed IPO of Uber and Lyft, among others, Chu thinks that many investors have now turned their eyes to cryptocurrencies. Many people expected that an investment in Uber gold would be worth money. However, this proved far from true; an investment of more than $ 1000 dollars was only worth $ 40 a few months later. Chu expects investors to focus on other tech investments, especially cryptos.
A bitcoin halving is coming
Chu's third reason for the upcoming price increase of bitcoin is the halving that awaits us. In May 2020, the reward for mining 1 bitcoin block will be halved. This happens every four years and ensures that the 21 million blocks that are available are actually available. Historically , a halving boosts the price of bitcoin enormously and it is to be expected that this will happen again.In addition to a major price increase for bitcoin, Chu also expects Ethereum to be successful. He calls the growth, development and adoption of the coin "excellent" and predicts a great future. In addition to Ethereum, he has just briefly mentioned Ripple, which is particularly useful as a payment solution for banks.We can certainly take Chu's predictions with a pinch of salt. He already made predictions about the price, for example that bitcoin would be worth $ 50,000 in 2018. For the time being it remains to be seen what the price of bitcoin will do, it remains difficult to predict