Last week, bitcoin pioneer Max Keizer tweeted, “My 2021 Bitcoin target is $ 220,000. He added,” I’m raising my short-term goal to $ 65,000. “The reason for his optimistic price forecast was due to several factors.
One such reason is the future listing of Coinbase shares in the United States on the cryptocurrency exchange.
The bitcoin expert also suggested that the price increase would be due to an increase in bitcoin supply gaps and the hashrate “going to 275 EH / s”.
The higher the hash rate, the more valuable each currency becomes.
Keizer said that another element that can fuel bitcoin’s optimistic performance is the plethora of stimulus packages being launched by central banks worldwide to compensate for the current economic problems of coronavirus.
He tweeted that “the printing of exploding money and the suppression of the price of gold” were the main factors in increasing the price of the most prominent cryptocurrency in the world.
Geoff Morphy, president of Bitfarms, one of the largest public bitcoin mining operations in the world, agreed that bitcoin was offering an attractive alternative of storing value to gold.
Speaking to Express.co.uk, Morphy said: “Bitcoin is the latest evolution in value, thousands of years of changes in currency representations have brought us to this point through exchange, gold and more.
“Today, individuals and corporations have highly sophisticated technical options that present themselves as an alternative to traditional currency deposits and investments that, more than ever, are vulnerable to inflation and devaluation.
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In 2017, Jamie Dimon, chief executive of JPMorgan, labeled bitcoin as a “fraud” that would explode.
Announcing at a bankers’ conference the same year, he said, “If you are stupid enough to buy it, one day you will pay the price for it.”
However, in early January this year, a senior strategist at JP Morgan said: “The elimination of gold as an ‘alternative’ currency implies a big advantage for bitcoin in the long run.
“However,“ a convergence in volatilities between bitcoin and gold is unlikely to happen quickly and, in our mind, it is a multi-year process.
“This implies that Bitcoin’s theoretical price target above $ 146,000 should be considered a long-term goal and therefore an unsustainable price target for this year.”