Last week, bitcoin pioneer Max Keizer tweeted: ‘My 2021 Bitcoin target is $ 220,000. He added: ‘I’m raising my short-term target to $ 65,000. ‘The reason for his optimistic price forecast was due to several factors.
One of these reasons is the planned US stock list of Coinbase, the upcoming crypto exchange.
The bitcoin expert also suggested that the price increase would be due to the widening of the gaps in the supply of bitcoin and the hashrate ‘heading towards 275 EH / s’.
The higher the hash rate, the more valuable each coin becomes.
Keizer says another element that could fuel the optimistic performance of bitcoin is the multitude of stimulus packages being released by central banks around the world to compensate for the current economic woes for the coronavirus.
He tweeted that ‘explosion of money pressure and suppression of gold prices’ were important factors in the rising price of the world’s leading cryptocurrency.
Geoff Morphy, president of Bitfarms, one of the largest public mining companies in the world, agreed that bitcoin offered an attractive alternative store for gold for gold.
Morphy said: “Bitcoin is the latest evolution of value. Thousands of years of shifting currencies have led us to this point through barter, gold and beyond.
‘Today, individuals and institutions are offered highly sophisticated and technical options that offer an alternative to traditional currency trades and investments that are more vulnerable to inflation and devaluation than ever before.
READ: Bitcoin prices rise to more than $ 10,000 as investors drop other cryptocurrencies
In 2017, JPMorgan CEO Jamie Dimon described bitcoin as a “fraud” that would inflate.
When he announced at a bankers’ conference the same year, he said, “If you’re stupid enough to buy it, you’ll pay the price for it one day.”
In early January this year, however, a senior strategist from JP Morgan said: ” The displacement of gold as an ‘alternative’ currency implies a major long-term benefit for bitcoin.
” A convergence in volatility between bitcoin and gold is unlikely to happen quickly and is, in our view, a multi-year process.
“This implies that the above $ 146,000 theoretical Bitcoin price target should be considered as a long-term target, and therefore as an unsustainable price target for this year.”