Bitcoin can reach $50,000 if it mirrors 8-10% of Gold’s market cap
Bitcoin has been extremely resistant to major price movements over the past month, with the world’s largest digital asset reaching a consolidation phase between $6800 and $7500.
However, that particular narrative may soon change according to Antoni Trenchev, Head of Bitcoin lending platform, Nexo.io.
In a recent interview with Bloomberg, Trenchev lauded BTC’s immense growth since its early days and conveyed that such development has hardly been witnessed in the traditional asset class, with Bitcoin scaling by over 9 million percent since the start of the decade.
When queried about its price in 2020, Nexo’s head suggested that Bitcoin could easily reach $50,000 this year. He stated that the upcoming halving would be important for Bitcoin’s next bullish phase as a similar situation had surfaced after the last depreciation of block rewards. He said,
“It delivers systematic asymmetric returns and the only thing we have seen close to anything like this has been the rise of the US dollar in 1920.”
However, Trenchev said that he believes that the previous narrative of ‘buying coffee with Bitcoin’ has failed and at the moment, it is inclining more towards the personification with Gold. He suggested that if Bitcoin could attract even 8 to 10 percent of Gold’s total market cap of $8 trillion, Bitcoin would be valued at close to $50,000 per coin.
During the interview, Trenchev was also asked about the central bank’s impact in the crypto-industry and whether it would disrupt the system. Trenchev said that he believes that the topic would remain predominant in 2020 and continue on through the decade as countries like China are finally questioning the dominance of the U.S dollar with the launch of their imminent digital Yuan.