Kana and Katana, the research platform of Ikigai Asseet Management, released a report last month stating that the CEO of Xapo Wences Casares predicts a bitcoin price of a million dollars.
"In my (subjective) opinion, the chances of success (Bitcoin) are at least 50%. If Bitcoin succeeds, 1 BTC can be worth more than $ 1 million in 7-10 years. This is 250 times more than it is today (Bitcoin was worth $ 4000 note at the time of publication), ”said the entrepreneur, who is also in PayPal's management.
Casares' Bitcoin investment is a risk and it would be dangerous for every investor to invest more in it than they can afford to lose. However, he also stressed that it would be equally irresponsible if he did not invest in Bitcoin at all.
A strong argument in favor of Bitcoin may be the very fact that it has already succeeded. For there is more than 10 years as a purely decentralized network.
Casares believes that any further success of Bitcoin will not happen by completely replacing reserve currencies such as US dollars, but rather by acting as an alternative to reserve currencies. ,, If Bitcoin succeeds, it probably won't replace any national currency. It may be a supranational name that exists over all national names. If Bitcoin succeeds, it can be a global political standard of value and settlement, "he said.
The investment portfolio is to be 1% BTC
Given the relatively high level of Bitcoin acceptance worldwide and the growing awareness of cryptocurrency as the emerging asset class, Casares believes that a $ 10 million investment portfolio should be made up of 1% BTC.
"I propose that a $ 10 million portfolio will invest a maximum of $ 100,000 in Bitcoin (up to 1% but no more because the risk of loss is high)." If Bitcoin fails, this portfolio will lose no more than $ 100,000 or 1 percent of its value over 3 to 5 years, a loss that most such portfolios can bear. But if Bitcoin succeeds, in 7 to 10 years it can be $ 100,000 more than $ 25 million, more than twice the value of the entire original portfolio, ”he explains.
Casares added that 60 million people who hold Bitcoin and move a billion dollars a day using it create a solid assumption for its long-term success. If, according to Casares, the number of BTC holders will increase significantly in the long term, suggesting an increase in its acceptance as an alternative currency, this will lead to a significant increase in its value. "Over time, I noticed that the Bitcoin price fluctuates around 7000 times the number of people who own the BTC. If this constant remained and if 3 billion people would ever own Bitcoin in the future, it would be a $ 21 trillion market, which is $ 1 million per BTC, "he explained how he reached his pricing forecast.
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