Bitcoin (BTC) has been on an absolute tear in 2019 so far. The cryptocurrency has gained hundreds of percent on its bottom of $3,150, as have a majority of altcoins.
However, this market’s rally might not be done yet. According to a pioneer of Bitcoin, Adam Back, BTC surging by another 400% is “not far off”. And here’s why.
Back, the creator of the Proof of Work protocol that Bitcoin mining is based on, recently laid out a number of reasons why Bitcoin could hit $50,000 in the near future.
They are as follows:
Bring it on, 2020 halvening, lots of geopolitical uncertainty, $15tril of -ve interest bonds, MMT excuses being tested to bring an even more imprudent USD inflation regime.
— Adam Back (@adam3us) September 6, 2019
Adam Back isn’t the only one calling for Bitcoin to soon hit $50,000.
Twitter analyst PlanB’s seminal price model for Bitcoin, the stock-to-flow (SF) ratio model, has shown that after the halving, BTC’s fair market capitalization will swell to $1 trillion. This, as aforementioned, translates to $50,000 per coin.
The model states that certain commodities, namely gold, silver, and BTC, can be valued by taking their SF ratios (an asset’s above-ground supply over its yearly inflation) and plotting them on a certain line.
PlanB’s model predicts that come next May, Bitcoin’s SF ratio will begin to approach that of gold, which is currently at 55, meaning that its fair value should too.
Featured Image from Shutterstock
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