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Bitcoin Price Hitting $700,000 Predicted by Adam Back Within Year or Two: Details

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Mon, 4/12/2023 - 10:45
Bitcoin Price Hitting $700,000 Predicted by Adam Back Within Year or Two: Details
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Adam Back, seasoned cryptographer and early Bitcoin believer, is known for his groundbreaking contributions to the crypto space and Bitcoin in particular. His company Blockstream is famous for developing the Bitcoin Lightning Network that allows for conducting micropayments in BTC, making these transactions cheaper and faster than regular BTC payments.

Today, Back took to the X social media website (formerly known as Twitter) to stir the BTC community with a bold Bitcoin price prediction.

"I'd take $700,000 per BTC"

He believes that "Bitcoin will undoubtedly flip physical gold, and it might just happen sooner than we think – perhaps in this halving cycle," thus referring to the approaching Bitcoin halvening as the major driver of the BTC price in his prediction. He believes the flippening will happen within "a year or two."

Back reminds the community that Bitcoin is a digital version of gold and so, according to him, the current BTC trajectory suggests that Bitcoin will soon flip physical gold by market capitalization. Per Back's calculations, after reaching this milestone, Bitcoin is likely to enter a bull cycle and reach an impressive $700,000 per unit.

Back explains his prediction

The aforementioned Bitcoin halving is approaching fast (expected in April next year), and Back seems to be making a major bet that this halving will enable BTC to surpass gold. Halvings were programmed by mysterious Bitcoin creator Satoshi Nakamoto to take place every four years, therefore, since 2008, this will be the fourth halving already.

The upcoming event will instantly reduce by half the rate at which new Bitcoins are generated. Historically, these halvings have happened before significant bull markets for Bitcoin occurred, and many top BTC influencers recently reminded the crypto community about that on the X app.

The key factor here is that as the supply of new Bitcoins dwindles, BTC will become more scarce as an asset. This scarcity, coupled with growing demand for BTC from financial institutions and increasing adoption, has so far managed to propel the Bitcoin price to new heights. In 2021, after a halving that occurred a year before, Bitcoin went as high as nearly $69,000. A simple economic principle is at work here — as the supply decreases and demand remains constant or goes up, an asset’s price begins to surge.

Related
Unstoppable Rally: Bitcoin (BTC) Price Finally Surpasses $40,000

Adam Back mentions important nuance

However, Back assumes that Bitcoin's potential surpassing of gold will happen since some investors might just begin to reallocate their portfolios. As Bitcoin has been gaining the status of a reliable store of value from many leading banks and fund managers (including the tremendous urge of behemoths like BlackRock and Fidelity to launch Bitcoin spot ETFs), some market participants might choose to diversify their portfolios by selling off portions of their gold holdings to embrace the "digital gold."

In this dynamic landscape, where the traditional financial system has faced strengthening competition from cryptocurrencies, Back's vision aligns with the growing market sentiment that Bitcoin will very soon reach new historic peaks thanks to its strong fundamentals and improving investor sentiment. Many venture capitalists and investors predict that $1,000,000 per coin is a fair price for BTC in the future.

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