A few days ago, a statement was made by Danish investment bank Saxo. According to this statement, the bank predicts that the total marketcap of bitcoin will reach a 1 trillion $ within 2018, bringing the price close to 60.000$ per bitcoin unit. Talking about scary cryptocurrency predictions..
As good as this may sound, this prediction is followed by a scary prediction. Saxo warns bitcoin fans that, due to scarcity of capital flight, China and Russia will assault the ecosystem of Bitcoin in order to shift the focus away from the world’s most popular cryptocurrency.
In addition to creating their own, state backed cryptocurrencies, the two countries will ban mining stating for environmental concerns, even though this will not be the true priority. China and Russia will simply make an attempt to control the domestic monetary policy.
The bank continues by stating that Bitcoin diehards will not give up without a fight but this move will eventually bring Bitcoin down to the price it had on December of 2016: 1000$.
Restating the bank’s official statement:
“The smoother functioning of the state-run protocols for actual payments and price stability, as well as the heavy hand of state intervention, drives a decreasing interest in all cryptocurrencies and completely sidelines the Bitcoin and crypto phenomenon from a price speculation angle even as the technological promise of the blockchain gallops on. After its spectacular peak in 2018, Bitcoin crashes and limps into 2019 close to its fundamental “production cost” of $1,000.”
Do we believe this?
The story certainly has a good hypothesis. However, just under a year ago, the same bank predicted the price of Bitcoin today would be a mere 2,100$. And obviously they got that wrong.
And do we believe that, in 2018, just because Russia and China issue their own state cryptocurrency and ban mining, the total marketcap of Bitcoin will fall back to 16 billion usd (equivalent of 1000$ per coin)? With the current mass adoption it is highly unlikely something like this would ever happen.
A wise man once said that: “if the people love something, the government better learns to love it as well”. And this is what we believe.
This is why Finecoin believes Europe should invest in cryptocurrencies, because, no matter what scarcity tactics banks use to scare the masses, the coin keeps growing in value on a daily basis. According to experts of the financial world, the coin could easily match the marketcap of gold in the coming years. This would bring the value of Bitcoin anywhere between 2.000.000-5.000.000 $.
Now back to you
So this is a message to make you think. Consider the variables of the current situation and use your personal judgement when reading these statements. Before you let fear get a hold of you, consider that this is the biggest and most profound financial “shift” of the 21st century. And we are part of it.