In a newsletter on the outlook for cryptocurrency, Bloomberg analyst Mike McGlone noted that the price of bitcoin (BTC) could rise to $ 500,000 or it could fail. McGlone further emphasized that he believes Bitcoin will become digital gold. He reiterated that the limited supply of bitcoin and increased demand were important indicators of acceptance, and compared it to a bullish trend in 2017:
Most of the broader cryptocurrency market mirrors the profits made in 2017, but the foundation remains stable thanks to Enhanced Decentralized Exchanges (DEX) and Funding (DeFi). Limited supply versus increased demand is the bottom line for Bitcoin, and macroeconomic fundamentals support the path to value. The market price of gold is estimated to be $ 500,000. Or it may fail. ”
The estimates cited by the analyst are likely based on the assumption that Bitcoin’s market value will eventually equal the price of gold at $ 9 trillion. Dividing this number by Bitcoin’s maximum payout of 21 million is $ 428,571. Anthony Pomplano, co-founder of Morgan Creek Digital, recently expressed the same opinion.
The margin of error from zero to five hundred thousand is very good, and it is unlikely that Bloomberg’s mistake will be proven anytime soon.