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The Bitcoin Award goes to the stratosphere. Bitcoin's forecasts have plagued seasoned investors and strategists like Tim Draper and Thomas Lee, each with a bullish price. Now, Brian Kelly, founder and CEO of BKCM LLC, a digital asset investment fund, joins the chorus, suggesting that Bitcoin could set a new short-term record.
Kelly predicts that with the resurgence of bitcoin transaction volumes, "there is no reason" for which the bitcoin price could not only come back on the $ 20,000 level, but reach a new one top of $ 25,000 by the end of the year. .
He also said that Draper 's forecast asking for $ 250,000 BTC by 2022 is not out of this world, adding that this would reflect a gain of 3,000% over a four – year period. While it may sound "crazy," he said, it's not unprecedented, given the 4,000 percent yield generated by bitcoin over the past two years.
"It's parabolic, but it would be just a continuation of the trend we've seen," Kelly said.
Here is an overview of the price of bitcoin since this period in 2016, where most of the dramatic rise has occurred over a short period of time –
& # 39; Sustainable Bull Run & # 39;
Kelly has described last week's momentum in the bitcoin price as "huge," adding –
"We need the fundamentals, which are the number of transactions, to catch up a bit with that level, and if we see that, then I think we have reached the bottom of here and we have a sustainable bull ahead of us, "he told CNBC
The interview with CNBC turned to institutional capital such as futures contracts entering bitcoin, which, according to Kelly, should "cushion" the volatility inherent in the price of BTC. Once that happens, Kelly said that bitcoin would become more "usable", adding –
"The big problem with Bitcoin now is to use it as currency is very difficult because of the volatility … This does not mean that it can not reach those levels. might not be as fast as the last two years. "It could take four years, as Tim Draper said," noted Kelly.
A day in the life
Indeed, The New York Times documented a day in the life of a bitcoin user for daily transactions, illustrating the challenge of finding New York retailers like grocery stores and restaurants that accept bitcoin as a payment method. The owner of a Brooklyn pizzeria that accepts bitcoin had the habit of "dealing with dozens of bitcoin transactions a week," but that number has fallen to zero next to the volatility of the bitcoin price.
Kelly pointed to the use of bitcoin beyond payments as a store of value. Someone questioned him on why someone would put money into a volatile bitcoin when they could lose 25% of their investment, to which Kelly responded that It's better than losing 100% if your assets are seized by a rogue government. So, it is the case of use today. "
Image from Shutterstock to photo
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