This Bitcoin Price Prediction Sees a 2016 Rise to $1, 000
By David Zeiler , Associate Editor , Money Morning &bull, @DavidGZeiler &bull, May 25, 2016
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Dec. 22 Update: With the Bitcoin price surging past $860 today, Vinny Lingham’s May Bitcoin price prediction is within reach.
He pointed out to Money Morning that his original call wasgoed based on the Bitcoin market cap hitting $15 billion. Spil of today the Bitcoin market cap is $13.8 billion. To reach $15 billion, the price of Bitcoin need only reach $934 by Dec. 31.
“I’m pretty blessed with my call, regardless,” Lingham said.
Original story goes after:
A Bitcoin price prediction of $1,000 by the end of 2016 might seem overheen the top – except that the person making it is two-for-two ter his previous predictions.
I’m talking about Vinny Lingham, a familiar name te the Bitcoin universe. He gained notoriety among cryptocurrency ventilatoren by founding mobile bounty card app Gyft ter 2012. Gyft permits customers to buy bounty cards with Bitcoin.
Lingham left Gyft ter January to found a fresh startup, Civic, which concentrates on digital identity protection. It uses the Bitcoin blockchain to help prevent identity fraud.
His Bitcoin price predictions have bot infrequent, but on the money.
Lingham made his very first Bitcoin price prediction at a Bitcoin conference ter San Jose te May 2013. At that point, the Bitcoin price wasgoed fresh off a run that took it from about $13.50 te December 2012 to $266 ter April, then a druppel back down to the $115 range.
Lingham boldly predicted that the price of Bitcoin would klapper $1,000 by the end of 2013. The audience chuckled at his audacity. While many Bitcoin enthusiasts felt the digital currency would get back to $266 or even $300, few thought it would reach $1,000 so quickly.
And yet te late November of that year – just six months after the conference – the Bitcoin price soared past the $1,200 mark.
Lingham made his next Bitcoin price prediction ter a late March 2014 blog post…
Another Contrarian Bitcoin Price Prediction Hits the Mark
On the one forearm, everything had switched. The Bitcoin price had plunged almost 60% from its late 2013 highs, to about $500. The Mt. Gox exchange had collapsed.
But the Bitcoin community remained undaunted. Bitcoin price predictions of an imminent comeback to $1,000 – and not long after that, $Two,000 – were typical.
Except for Lingham. He vapid out said the Bitcoin price would not revisit $1,000 ter 2014. Instead, he foresaw a lengthy period of Bitcoin price consolidation ter the $350 to $550 range.
And that’s very close to what’s happened, with Lingham somewhat off ter his estimate for the lower trussed. It turned out to be closer to $200 than $350.
Now, a little more than two years straks, Lingham has weighed ter again. This time he’s bullish, predicting a Bitcoin price of $1,000-plus by the end of 2016.
Here’s why Lingham thinks the price of Bitcoin will dual overheen the next seven months – spil well spil his surprising 2017 Bitcoin price prediction…
Why the Price of Bitcoin Will Get to $1,000 ter 2016
Te his latest blog postbode on the Bitcoin price, Lingham says that the headwinds he witnessed two years ago have reversed into catalysts.
He’s encouraged by:
- Consumer adoption of Bitcoin catching up to merchant adoption.
- There’s tremendous rente te the blockchain, the technology that underpins Bitcoin.
- The rise te prices from last year’s lows around $200 has helped Bitcoin miners stay profitable. (Miners create the bitcoins and verify the transactions.)
- Overheen the past year, the Bitcoin price has trended up, providing it positive momentum.
- The Mt. Gox fiasco is mostly forgotten. Today, customers trust the Bitcoin exchanges.
Just thesis catalysts alone, Lingham says, should be enough to get the Bitcoin price to $1,000 by the end of the year.
But Lingham also sees several extra catalysts that will help shove the price of Bitcoin to $1,000 – and well beyond.
Very first, he thinks the rente te blockchain technology, which for the most part has looked to exclude Bitcoin te favor of private blockchains or blockchains based on other cryptocurrencies, will circle back to Bitcoin’s.
“Wij will live ter a world where there is a ‘chain of chains,’ all interlinked ter some way,” Lingham says. “Bitcoin may not rule the finance world chains but it may act spil an intermediary toneelpodium for lodging across chains.”
2nd, he believes the July 11 halving of the block prize to miners from the current 25 bitcoins to 12.Five bitcoin will trigger a brief squeeze. Lingham’s theory is that traders have borrowed bitcoins from exchanges to sell into the market, thinking the Bitcoin price will druppel.
Miners often borrow coins to sell spil a way to lock ter profits. But after July 11, they’ll be mining half spil many bitcoins, making it stiffer to repay what they owe their exchange. So they’ll have to buy bitcoins, driving up the price.
If the price of Bitcoin spikes spil a result of miner buying, the traders that are brief will also have to hop ter to avoid getting hefty losses.
The halving also cuts the supply of fresh Bitcoin, which should have a deflationary influence. Fewer bitcoins with toughly equal request should thrust the value higher.
Ultimately, Lingham thinks that governments will commence to buy Bitcoin spil a strategic investment. It’s not that far-fetched, spil governments already like to buy gold. And Bitcoin is essentially digital gold.
“Imagine if China commenced buying up large amounts of Bitcoin – would the surplus of the world governments stand idly by and observe? I don’t think so – so my prediction here is that by 2017, governments will become the largest buyers of Bitcoin, pushing the price up to fresh highs,” Lingham says.
Lingham sees the compels that will thrust the Bitcoin price to $1,000 te 2016 continuing to drive prices higher ter 2017, when he predicts it will pauze $Three,000.
That’s a build up of 567% from today’s prices.
Spil crazy spil that seems, Lingham’s call is not out of line with two predictions from top-flight Wall Street analysts. Needham & Co. has a target of $1,896 by 2020. And Wedbush Securities has forecast a Bitcoin price of $17,473 by 2025.
The Bottom Line: A fresh Bitcoin price prediction from an entrepreneur with a knack for making accurate calls on the digital currency sees numerous catalysts driving Bitcoin much higher overheen the next two years. He has forecast a dual to $1,000 by the end of 2016 and an explosion to $Three,000 by 2017.
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