If you haven't seen the latest headline out quoting Mark Yusko, you can check it out here:
https://www.cryptocoinsnews.com/stock-market-bear-sets-1-million-bitcoin-price-target/
Basically he is calling for a $1 million dollar Bitcoin price within the next 10 years, and a base-case of $500k with a 75% likelihood over the same time period.
Sounds great, but...
My opinion, this is all getting a little ridiculous.
I am all for being bullish, and I am a strong believer in the technology and have have high hopes that Bitcoin (or some other cryptocurrency) does catch as a store of value that captures a percentage of the precious metals market (at the very least), but $1 milllion dollar price targets?
I honestly feel like saying things like that do more harm than good as people see numbers like that dominating the headlines and think how ridiculous that sounds...
It makes Bitcoin and the entire space look even more like a bubble that anything else.
However, to his credit, I do understand his argument.
He is basically saying that over the next decade, best case scenario, he could see bitcoin taking enough share from the precious metals markets to achieve a $1 million dollar price point.
Basically he is saying that Bitcoin will be a store of value that is widely owned.
Ok, that might be true, but how likely is that to actually happen?
Yusko went on to say that he thinks Bitcoin has a 75% likelihood of reaching $500,000 within the next decade as his base case scenario.
Wow.
Not sure how he came up with that 75% number but ok, I will play ball.
To counter that, we are already seeing Bitcoin catch flack from every direction right now. From Wall Street to major countries around the world who are either banning it, regulating it, or creating their own.
And this is all happening around the $5k price point...
Do we really think they are going to stand by and let the price run all the way up to $500k or $1 million?
I think there is very little chance of that happening.
Sorry to rain on the parade...
If Bitcoin and other cryptocurrencies really start to catch on I think we will see governments step in and step in, in a big way.
They will create govcoin, which will run parallel to whatever their fiat currency is. Over time govcoin will gain traction as people find it easier to transact in than holding large amounts of cash.
Taxes and government programs will all be paid in fiat or govcoin of course, which is what is really needed for these things to catch on.
Sorry to be a downer, and I wish I saw things some other way, but the more I think about things and the more I study these things, this is the conclusion I keep coming back to.
We are already seeing the beginnings of this with Russia, China, and possibly even Japan.
What I need from you?
I really don't like believing what I just posted above and would thoroughly like to be convinced otherwise, so please tell me how and why I am wrong in the comments section below.
That's it, that's all you have to do.
If I find an answer that is convincing enough to change my mind I will pay out 10% of this post's earnings to the author.
Thanks for playing and let the convincing begin!
Stay informed my friends.
Sources:
https://www.cryptocoinsnews.com/stock-market-bear-sets-1-million-bitcoin-price-target/
Image Sources:
https://expertbeacon.com/use-giveaway-or-contest-supercharge-your-marketing-efforts/#.WeeVFdNSyM8
https://blogs.vmware.com/cloud-foundation/2017/09/11/cloud-foundation-captionvcf-contest/
