A new study goes back to talking about cryptocurrency growth forecasts. According to a Crypto Research Report, Bitcoin could reach $ 20,000 by the end of 2020, but this time the analysis is not based on technical analysis, but on fundamental analysis, as we will see in the course of this article.
Bitcoin at $ 20,000 would be a resounding return, it is in fact still the maximum value reached by the "king of cryptocurrencies". This happened in December 2017, shortly before the other cryptocurrencies in January 2018 also reached very high peaks.
Bitcoin "to the moon" according to the Irving Fisher equation
The prediction that says Bitcoin will fly for $ 20,000 is based not on a technical analysis but on a fundamental analysis. The prediction is based on the Irving Fisher equation.
Without going too far into the details of the mathematical equation, it basically was created to calculate the "Yield to Maturity", ie the yield upon maturity of a security, when inflation is present.
Fisher's equation estimates the relationship between nominal and real interest rates, but in the case of Bitcoin it was used to analyze a particular process.
The more a currency (in this case cryptocurrency) is transferred from one bearer to another, the more it loses value. In fact, an asset with a higher value is sold with greater resistance.
Based on this assumption, the analysis involves Bitcoin reaching a share of $ 20,000 by the end of 2020.
Thereafter, the BTC price is expected to continue to rise and reach $ 340,000 by 2025 and $ 400,000 by 2030.
Growth also expected for other cryptocurrencies
The analysis also foresees the growth of other cryptocurrencies among which we find:
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Stellar Lumens (XLM).
The highest growth forecasts are for Litecoin (LTC), which could almost double the current quote ($ 44) by the end of the year and reach $ 80, but reach $ 1,200 by 2025 and $ 2,200 by 2030.
Ethereum (ETH) could reach $ 300 at the end of the year, obtaining + 50% compared to the current value ($ 200), but for highly exponential growth we have to wait until 2025, when according to the Crypto Research Report it could reach $ 3,500.
As anticipated, according to the research, cryptocurrencies such as Bitcoin Cash and Stellar Lumens could also get a price increase, always taking into account the Fisher equation.
Finally, the total market capitalization of cryptocurrencies could go from the current 267 billion dollars to 212,000 billion dollars.
Bitcoin at $ 20,000, too optimistic?
Bitcoin forecasts at $ 20,000 could be considered optimistic, especially those for 2025 ($ 340,000) and 2030 ($ 400,000).
The analysis obviously cannot take into account many other factors, such as the economic conditions of the planet and the spread of cryptocurrencies among ordinary people and companies.
For example, the Coronavirus pandemic has slowed the spread of cryptocurrencies, in fact previous analyzes on 2020 are already to be considered null because of the uncertainty due to the propagation of Covid-19.
However, it is true that fundamental analysis like the one we talked about today can be considered more solid than many others based on mere technical analysis. In fact, these analyzes do not consider many factors that are also considered fundamental in the world of crypto, such as the use of virtual currencies for example.
What do you think about it? Beyond your "skill" or awareness in reading graphs and doing analysis, what will be the value of the crypto mentioned in the article at the end of 2020? And in 2025? If you want to let me know yours in the comments I would be really happy if you created a discussion on the subject.
If you have come this far, thank you very much and see you soon!
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