On April 22 2018, there came a striking prediction in a twitter post by the management director of an investment management firm, Morgan Creek Capital Management, Mark Yusko. Yusko stated that by the end of this year, 2018, bitcoin will be worth as much as $25,000, will continue to increase and reach a remarkable worth of $500,000 by the year 2024. Here’s the chronological order of bitcoin prices;
- January 2018, price of Bitcoin: $ 13,546.15
- 22nd April 2018, price of Bitcoin: $ 8808.68
- 22nd April 2018 Mark Yusko’s predicts the price of Bitcoin by the end of the year as $25,000
- 27th July 2018, price of Bitcoin: $ 8195.9
- 27th July 2018, Marko Yusko defends his stance from April
On July 27 2018, Mark Yusko defended his stance and backed his 22nd April 2018 statement about bitcoin rising to as much as $500,000 by the year 2024.
— Mark W. Yusko (@MarkYusko) April 21, 2018
Once again Yusko made news as he claimed to stand by his stance from April 22. This came in as twitter post, on 27th of July 2018, in which he also added that the reason why bitcoin is likely to climb such unfathomable heights is because of its ‘Network Effect’, while calling the daily price as “just noise”.
My view from April is unchanged. The #NetworkEffect of #Bitcoin is powerful and all that matters today is securing ownership of the Network, the daily price is just noise… #BuyAndHODL 🚀 https://t.co/FvnIi4jrX1
— Mark W. Yusko (@MarkYusko) July 26, 2018
What is the network effect?
A network effect is the positive effect described in economics and business that an additional user of a good or service has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of users using it.
Social media is a good example of network effect. More the people on a particular platform, the higher its value becomes, however, once a certain person sets up an account, he/she unintentionally also increases the value of the platform for their other friends (it would be easier for you to leave Facebook if you have 30 friends on it compared to when you have 300).
According to Husko, similar is the case with bitcoin.
The Bitcoin is also said to have been following a parabolic path, it increases to a peak value, then falls. However, in its parabolic trajectory, bitcoin seems to have multiple rises and falls. As Husko explains :
If you look at [bitcoin price] history, you know there’s been five parabolic moves or crashes, and we’ll have a 6th, 7th, and 8th, and 9th, and it is just the way it works. So I don’t think you need a big event, and you’ve seen it in the past couple of weeks, right? As soon as the price starts to run. Those people that have been waiting on the sidelines to make sure that the bear market is over are ready to jump in, and once it actually starts moving, then it starts moving fast and that’s when you get those parabolic moves,
Last year, in October, Yusko also predicted that in the long term, bitcoin could rise up to as much as $1 million.
Is bitcoin really getting warmed up?
It is hard to say anything for now, but bitcoin has proved to make strange turns before. Speaking of the trends, in December 2018, Bitcoin rose up to $20,000 in just some weeks and later fell to $6000.
However, there exist many who think that Bitcoin will fall while others are optimistic just like Mark Yusko. Below are some other predictions from leading names in the crypto world.
- Todd Gordon, founder of TradingAnalysis.com predicted Bitcoin(BTC) to drop to $4,000 prior to a rebound above $10,000 by 2019 on CNBC’s Stock Draft.
- Wall Street analyst Spencer Bogart said that the significant cryptocurrency will trade “at least” above $10,000 by the year’s end.
- Mike Novogratz’s, a previos Wall street hedge fund manager, prediction suggests: “Bitcoin could be at $40,000 at the end of 2018,” Novogratz said. It easily could.” Going much more long-term, Novogratz said it was within the realm of possibility that the bitcoin market cap could one day reach the current market cap of gold, which is around a whopping $8 trillion USD.”
- Max Keiser, firebrand bitcoin Guru projects the bitcoin price target to be $15K soon, and $100,000 on the horizon.
- Adam Back, an OG cypherpunk, also said that the bitcoin price will be hitting $100,000.
- John McAfee, a bitcoin aficionado thinks $1 million per bitcoin will be reality by the end of 2020.
In short, many believe Bitcoin to have potential, for some that goes up to 6 digits. As to the usual question that many also remain in doubt of: should you invest in the currency to yield benefits in the long run? According to Yusko’s (and others’) long termed predictions, and with the current price of Bitcoin, it would not hurt you to.