With Bitcoin persisting to rebound crazy in the last few months, it is coherent that many are asking if retribution is anticipated. And despite his reservations about its long-term prospects, billionaire venture capitalist and entrepreneur, Adam Back admits that the current price action does look rather frothy. But he still stands by his previous $100k price target for this year.
Adam’s $100 000 price forecast for BTC
For those who aren’t aware, Adam Back made a controversial bet that Bitcoin’s price would hit $100 000. While this number still seems a bit arbitrary, it is important to remember that the bet had nothing to do with the current price at the time.
It is all about the future price of Bitcoin. And this brings us to the first point. Adam said that he believes Bitcoin’s fair value is $100 000 since it is a store of value and a settlement network. But since Bitcoin’s average daily transaction value is less than $100k, it will be quite some time until we see Bitcoin at its fair value.
But by 2022, he says that Bitcoin will be at about the same level as gold today. And if this happens, the price of BTC would be around $100 000.
Is Adam Back’s $100 000 By 2022, a Crazy Price Prediction?
Yes, most definitely. It’s a bold claim to make, that’s for sure. But, with all the hype and attention surrounding cryptocurrencies at the moment, it wouldn’t be so surprising if someone made such a prediction. That’s not to say that Back’s $100k is a ridiculous price prediction though.
On the contrary, as we’ll see later, it’s a price prediction that makes sense if you know what to do with it. So, is $100k a crazy price prediction? No, not really. But, it’s still a long way away.
Can Bitcoin rally to $100k in 2022?
Now, given that Bitcoin has almost tripled in the last five months, this $100k price target might seem like a far-fetched one. But Adam believes that there are many fundamental factors that make such a price rally a valid possibility:
You first need to remember that Bitcoin is trading at $20,000 this month. So, even if the price is to increase, you’re still looking at an 80% plus increase. It is also important to note that the total crypto market cap is only around $300 billion at the moment.
This is a very young asset class, and there is still significant room for growth.
It is also important to note that Bitcoin has seen significant institutional adoption in the last few months. This means more money is flowing into the asset class, which is always good news for the price.
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