Cryptocurrency analyst Plan B has released a new prediction that indicates Bitcoin will hit $55,000 by 2020.
The prediction comes from the halving of mining rewards that is due to occur around May of 2020. The halving will mean Bitcoin is harder to obtain and Plan B postulate that this will play a force in driving value again to higher highs.
Plan B compared Bitcoin to precious metals in relation to their stock-to-flow in order to get some idea on trajectory, according to this analysis the coming halving will likely place Bitcoin in line with the stock-to-flow of Gold.
Plan B commented “Next halving is May 2020. Current SF of 25 will double to 50, very close to gold (SF 62). The predicted market value for bitcoin after May 2020 halving is $1 trillion, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model…
People ask me where all the money needed for $1 trillion bitcoin market value would come from? My answer: silver, gold, countries with negative interest rate (Europe, Japan, US soon), countries with predatory governments (Venezuela, China, Iran, Turkey etc), billionaires and millionaires hedging against quantitative easing (QE), and institutional investors discovering the best performing asset of last 10 years.”