One of the most controversial "cryptocelebrates", John McAfee says it is mathematically impossible for a Bitcoin price to be less than a million dollars by the end of 2020.
While we get to the explanation of McAfee's theory, let's recall that this man, who is behind the emergence of a well-known antivirus, has said that if Bitcoin does not reach $ 1 million by the end of 2020, it is eating its own penis. It is a lot.
The British-American cyber security expert, in his theory, recently refers to basic mathematics as its main metric to justify its prediction for the BTC price. He argues that predicting prices for cryptocurrencies is not based on the classical model, as in the case of shares where paradigms and formulas are used.
Although referring to mathematics, McAfee did not actually mention any specific mathematical formula that would confirm that Bitcoin is about to reach a million dollars. In the past, however, he claimed that the Bitcoin price is directly related to the costs associated with its extraction. The price also correlates with the total number of users in the network and the amount of their transactions. McAfee, who allegedly likes to run for the US president in the next election, emphasizes that Bitcoin is not a speculative investment, but a tool that drives a payment protocol operating without banks.
McAfee suggests that with Bitcoin it may be similar to accepting fiat names. The higher the value of the dollar in the eyes of people based on their trust in the regulator issuing it, the greater the demand for "Benjamin" (former US President Benjamin Franklin displayed on the 100-dollar bill). However, in the case of Bitcoin, the issuance of additional coins is slowing down until it is over. Instead of pushing the endless number of dollar bills, the Bitcoin protocol determines the predetermined emitting of 21 million BTCs while allocating work to thousands of minerals.
This results in a financial protocol that transfers funds cheaper than the average bank. In addition, it also records each transaction without the need for intermediaries. McAfee believes this is the main reason why the use of Bitcoin will continue to grow.
,, People will start using Bitcoin for payments and revenue. They will stop using the dollar, the euro, the Chinese yuan, which are devaluing in the long run, ”he said.
Unfortunately, McAfee did not say why Bitcoin should reach the price by the end of 2020. Meanwhile, it is an unrealistic scenario, as Bitcoin is priced at just over $ 5,000. To meet its forecast, it would have to grow to 19900% by December 2020. Such a sharp increase in its price could only occur in the case of a tremendous trouble several times greater than we observed in 2017. At the same time, it would be an unnatural price development, which would seem to further burst, perhaps the greatest "bubble" in history. A slower, but steady growth would rather help the actual Bitcoin adaptation. The price of a million dollars may not be unrealistic in the future, but achieving it in less than 2 years might be more damaging to the market than helping, and it would result in devastating losses for many "late" investments.
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