Bitcoin At $400,000
According to analyst NebraskanGooner, Bitcoin (BTC) is poised for a massive rally. Gooner’s trend indicator, fittingly named “Top Goon X”, recently printed a black arrow in the weekly chart after a red arrow, which precedes a bottom, was seen. The last two times this technical pattern occurred, Bitcoin rallied by 5,000% in the years that followed.
The thing is, the cycles’ lengths have tripled each time. Thus, if Top Goon X’s trend plays out to a tee here, Bitcoin may take until 2025 to rally by 5,000% from here, $8,500, to $420,000, which is where the indicator predicts this market will top next.
The Fundamentals Behind A Six-Digit BTC
The fundamentals also support the idea that Bitcoin could soon see $400,000, beating the expectations of crypto’s countless cynics. For those unaware, if BTC was to absorb all the value of the gold market, each coin would be valued at anywhere from $350,000 to $500,000 — a 4,375% to 6,200% upside from here. While this seems like a crazy proposition, there is growing evidence that BTC could easily act as a better store of value than gold.
Firstly, much of the gold market is paper, meaning that for the billions and trillions of dollars of gold derivatives on the market, there isn’t enough physical metal to back those contracts. As long as these derivative markets don’t blink out of existence, many have claimed that “gold won’t act like gold”, setting the stage for Bitcoin to take over.
More importantly, however, Bitcoin is structurally better than the precious metal. Unlike the metal, BTC is mathematically scarce, capped at 21 million units; BTC is decentralized and verifiable through the Internet; BTC is portable and divisible through digital technologies, and is unconfiscatable. Gold, on the other hand, has an unlimited supply, centralization risks, an inability to be easily divided and moved around, and concerns around its purity.
This isn’t the only fundamental factor backing a Bitcoin rally to/around $400,000. As Filb Filb, a popular trader and researcher, explained in an extensive Twitter thread posted near December’s bottom, if BTC’s supply is issued on schedule, if crypto adoption follows that of the Internet’s, and if debt continues to increase, Bitcoin could easily see six figures by 2021, not decades down the line.
Tip Of The Iceberg?
Some say that $400,000 might just be the tip of the iceberg, though. As reported by Ethereum World News previously, there are a number of pundits expecting for the leading cryptocurrency to breach seven figures. Crazy, right?
They look to the fact that soon enough, certain fiat currencies may start to falter, leading to a rush for save haven assets. With gold, as mentioned earlier, purportedly paling in comparison to BTC, many may turn to cryptocurrency, leading to a massive increase in the asset class’ value and its long-term value proposition.
Title Image Courtesy of Chris Liverani Via Unsplash