According to a Fox News Business Alert, which aired on June 30th, a prediction of Bitcoin being valued at 1 million dollars was brought up during a segment "Making Money" hosted by actor... err.. I mean anchor Charles Payne. Admitting to their previous oversight of the new technology as a "beenie baby" fad, they went on to predict a 1 million dollar per coin price for the 5 year old cryptocurrency.
Guest Naomi Brockwell, former policy director at the New York Bitcoin Center stated "It's going to the moon" after a very honest and logical testimony that Bitcoin's value is based upon its decentralized properties. As she stated “The main people promoting this technology are those who understand that governments can be dangerous", the 1 million dollar prediction for bitcoin was raised to 1 Biiiillllllion dollars, which is actually quite possible, if we experience a Zimbabwe/Argentina style hyperinflationary period.
Is Bitcoin going to reach 1 million, or even 1 billion dollars? I find that it is likely if a few scenarios play out.
- Bitcoin would have to become more secure and user friendly, with support companies making it as easy to buy and sell as any other currency onto a credit card. Examples of BitPay and the Shift Card, where crypto and Visa work together to make bitcoin spending anywhere more feasible is an example of how this is already in the works.
- A loss in confidence in the US Dollar and other currencies abroad. With Russia and China already trading oil outside of the petrodollar, the trend with the looming derivatives bubble is making this more and more of a possibility every day. With all currencies so closely tied together on a global scale, one domino falling could lead to the whole house of cards collapsing.
- Following a loss of confidence and an exodus of fiat currency, nations will adapt. With Japan already recognizing cryptocurrency as legal money as of 2 months ago and Russia, India and Australia on its way, Western nations will feel the pressure and fall behind as they are late to adapt. (However, early adopters individually will be able to prosper during these times).
- A significant loss in purchasing power within the sphere of the fiat currency market. As a safety net, people will flood to hard assets such as gold, silver, property and cryptocurrency. The lack of transferability of gold and silver globally will increase the recognition of the cryptosphere's value and cause a massive injection of new capital. Unlike a pump and dump in financial markets, the actual use of this currency will cause sustainable growth as the fiat buying power continues to become crippled.
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