There are multiple opinions in the media regarding the price of Bitcoin. The price went up and down. However, the long-term dynamics explain why Bitcoin price will grow. Many people believe that the price of Bitcoin will rise astronomically, although there was a recent dip. This is because the theory goes that BTC is not a linear
Reason 1 Why Bitcoin Price Will Grow: Bakkt Is Coming
The first reason that we are going to discuss is the introduction of
Surprisingly, even such companies as Starbucks, Microsoft, and Boston Consulting Group (BCG) are joining Bakkt. Indeed, it might even be on the Microsoft cloud. Not only that, but some Bakkt discussions surround getting crypto into 401(k) accounts. In the end,
The CEO of Bakkt, Kelly Loeffler, likened the digital market to the energy market in the early 2000s. Due to Kelly’s long role as the senior Communications and Marketing executive at ICE, she was able to credit ICE with attracting more institutions to trade energy. According to Kelly, it helped create today’s liquid energy market. The current CEO of
Reason 2 Why Bitcoin Price Will Grow: Governments Are Taking Digital Currencies
The second reason why Bitcoin price will rise to be at least $100,000 by 2022 is that some governments already began capitalizing on BTC; at the very least, they have done so in the form of taxes and court seizures. It turns out that many governments could not prevent their people from using digital coins. Thus, the nations started to impose taxes on digital asset profits; additionally, they began seizing digital assets in court punishments. Cases are starting to take place in South Korea, the United States, and even Israel.
Many people were in shock after the recent South Korea Supreme Court’s decision. In May of 2018, it ruled that Bitcoin is legally a recognizable asset. Particularly, when it comes to court confiscations. In one case, the Supreme Court overturned a lower court’s decision not to confiscate a convicted man’s Bitcoin. In fact, the Supreme Court ruled that people who trade Bitcoin on exchanges can use it to buy goods; thus, receiving Bitcoins is an act of taking profits.
Likewise, the U.S. Internal Revenue Service (IRS) admitted that virtual currency has a value. This value is equivalent to real currency in terms of its buying power. Even more, the
Even more, the Israel Tax Authorities stated that Bitcoin is a taxable asset. The tax agency has even gone hunting for Bitcoin traders on social media, like Facebook and WhatsApp. This is because when one Bitcoin is sold, the seller has to pay a 25% capital gains tax; on top of that, anyone the Authorities consider to be running a Bitcoin business needs to pay a value-added tax of 17%.
Reason 3 Why Bitcoin Price Will Grow: Crypto Bulls Influence Global Media and Governments
The third reason why Bitcoin will rise is that weighty crypto bulls are pushing for higher BTC values. The crypto bulls include billionaire investor Tim Draper; PayPal, Tesla, and SpaceX entrepreneur Elon Musk; and McAfee founder John McAfee. The businessmen have the power to influence global media and governments.
Tim Draper is a billionaire investor who famously said that Bitcoin will reach $250,000 by 2022. Many people know of the famous venture capitalist for his proposal to split California into several parts. Despite political obstacles, Tim managed to get his “Split California” proposal under consideration by the Supreme Court of the State. Sure, political parties pulled his proposal from the ballot for further review; however, Draper must have built a number of connections in the California government from this activity. Even more, he previously worked on the California State Board of Education in the 1990s; it was before he founded Draper University in 2012. Also, Draper is no new name to the world of media. Worth Magazine named the Tim number 98 on a list of 100 Most Powerful People in Finance. He also won
Elon Musk is nearly a household name. The PayPal, Tesla, and SpaceX entrepreneur
John McAfee is another crypto bull. He is famous for his statement that Bitcoin will rise to $1 million by 2020. Sure, this might seem to be an extremely large number; however, we know that McAfee is not your average guy. The entrepreneur’s company invented the McAfee antivirus. Then, Intel bought and renamed his McAfee company; it became Intel Security. Like the other names in this list, the media has also interviewed John McAfee a number of times. Even more, as a political activist, McAfee ran for the Libertarian Party to be the President of the United States. He lost the election; but, we are sure that he has a number of contacts in U.S. politics.
Think Twice About Bitcoin
Certainly, we can name other reasons why Bitcoin will reach a price of at least $100k by 2022; however, we are short on time and breath. Just remember, previously people shrugged off the idea of crypto; now, they are thinking twice about it.