Dennis Porto, a Harvard researcher, has recently told Multiplex founder Brian Roemmele in an interview that based on Moore’s law, bitcoin price will surpass the $100,000 mark.
“Bitcoin’s price could hit $100,000 per coin if it continues to follow Moore’s law,” said Porto.
Moore’s law, named after Intel co-founder Gorden Moore, refers to the finding of Moore in 1965 when he noticed that “the number of transistors per square inch on integrated circuits had doubled every year since their invention.” Essentially, Moore’s law demonstrates the exponential growth of technology and the rapid rate at which the technology market is expanding.
Like Intel’s integrated circuits and Nvidia’s microchips, bitcoin has rose in value at an exponential rate since early 2009. It has consistently been the best performing asset and currency in the world throughout the past 8 years, with the exception of 2014. According to prominent Wall Street strategist Tom Lee, bitcoin is en route to become best performing currency and asset again by the end of 2017.
Emphasizing the rapid increase in demand towards bitcoin from institutional investors, Lee explained that bitcoin will undoubtedly become the best performing asset this year and he would easily choose to invest in bitcoin instead of a “basket of US Stocks.” Lee noted:
“I think bitcoin is an underowned asset with potential for huge institutional sponsorship coming. It has a lot of characteristics that are very similar to gold that I think will make it ultimately attractive as an alternate currency. It’s a good store of value. Institutions have to directly buy the coin today through a broker, but both the CBOE and the CFTC have opened up options futures trading, so I think it’s going to grow in holdings.”
There exists many reasons as to why prominent analysts and high profile traders remain confident in bitcoin and its strong rally. One of the many reasons is bitcoin’s adaptability. Bitcoin is being considered by most as digital gold, a safe haven asset and a long-term investment. Investors have been purchasing bitcoin as a wealth management product in order to protect portfolios from economic uncertainty and global markets volatility.
But, before anything else, bitcoin is a digital currency. Its transportability and high liquidity have been two of its major advantages and traders have started to prefer bitcoin over gold due to its applications. It can be utilized as both digital gold and a digital currency.
As Lee explained, the liquidity of bitcoin will only increase in the upcoming months, at a rapid rate. Some of the world’s largest markets and trading platforms are about to integrate bitcoin, starting with the Chicago Board Options Exchange. More to that, large-scale commercial banks are actively investing into the possibility of integrating bitcoin. Already, major Swiss bank Falcon integrated bitcoin and has started to offer bitcoin trading services to its clients.
“The first reactions to our Bitcoin services have been very encouraging and we are convinced that by adding three new Blockchain assets we will fulfill our clients’ future needs,” Arthur Vayloyan, global head of products and services at Falcon, stated.
As global adoption of bitcoin as digital gold and currency continues to increase at an exponential rate, inevitably, bitcoin will reach a value of $100,000, as predicted by Porto and many other analysts in the finance sector.