Despite the cryptocurrency market’s sideways trading, the collective community has continued to predict an optimistic future for Bitcoin [BTC]. In fact, some have opined that this future could result in a trillion dollar bull run.
Christ Burniske, Partner at Placeholder VC and a venture capitalist, is one of those after predicting that Bitcoin could see a thirteen-digit valuation following the next bull run. He based his projection on the trends of the top 10 crypto-assets, recorded at the end of the year since 2013.
These assets were periodically analyzed over six different periods. Based on the chart, two notable standouts were traced. First, December 2017, when BTC’s price nearly touched $20,000 and held over 55 percent of the total market. Second is the crypto-winter of 2018, which saw the January high of $700 billion fall to around $100 billion.
His tweet read,
“Looking at the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) gets to $1 trillion on its own in the next bull market.”
Burniske further commended the performance of altcoins in the cryptocurrency market. Previously, the market looked like “#Bitcoin and 9 dwarves,” but since then the “dwarves” have seen relative “growth spurts,” compared to Bitcoin, a tall order indeed.
This “growth spurt” was most prominent in 2017, he added. In the aforementioned year alone, altcoins rose from $2.29 billion at the beginning of the year to $546.11 billion at the close. In the same year, BTC market dominance slumped to its lowest point of 39.72 percent, while the top-altcoin, Ethereum [ETH], was inching closer to a 31 percent market share.
Owing to the venture capitalist’s prediction of a $1 trillion market valuation for Bitcoin, the cryptocurrency’s price would be $50,000, which is 9.4 times its current price. Further, considering Bitcoin holds 52.4 percent of the market at press time, if this degree of market share holds when the bull run dawns, altcoins will be pegged at around $910 billion.
During the December 2017 bull run, Bitcoin failed to break the $350 billion ceiling, closing out at $322 billion while the collective market breached the $805 billion mark. Burniske’s projection would require Bitcoin to surge by over three times its all-time high market capitalization.
Citing no concrete and verifiable factors for the next “bull-run,” Burniske insisted that “markets run of faith.” He tweeted,
“Some will object to my use of the term, as some faith is certainly more informed than others, but at its core everyone allocating capital has faith that the system will produce future values > present values, an unknowable future state that we dream towards together w/ our faith.”
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Bitcoin [BTC] gained popularity in China because it offered ‘a quick profit’, says Joyce Yang
Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.