An anonymous analyst on Twitter called Dave the Wave considers that it may be possible for Bitcoin price (BTC) to move towards $500,000 if the adoption for the cryptocurrency continues to grow. He mentioned that a few hours ago in a Twitter threat where he explained and covered price forecasts, price analysis and fundamentals.
Could Bitcoin Reach $500,000?
As the cryptocurrency market is currently in “pause” mode and financial markets are waiting for U.S. elections, analysts remain bullish about the future of the most popular virtual currency. Dave the Wave considers that if the adoption of Bitcoin continues to grow and it follows the S-Curve of the adoption life cycle, then we could see Bitcoin moving towards $500,000.
The S-Curve of the adoption life cycle has two axis. The Y axis makes reference to the market share (price of Bitcoin), the X axis makes reference to the time. There are 4 main stages of the adoption life cycle. The first one is the “Ferment” stage where innovators are those involved in the market.
The “Take off” stage represents early adopters and the curve turns into an exponential one. Once it reaches maturity the growth rates slow down and it stabilizes. Finally, the discontinuity stage is the last one,
About it he stated on Twitter:
“If the current market represents 2.5%, then that would put the price at $500k with 100% adoption / full capitalization. This is the S curve.”
If the current market represents 2.5%, then that would put price at 500K with 100% adoption/ full capitalization. This is the S curve. https://t.co/ZXj5YNlckp
— dave the wave (@davthewave) September 29, 2020
Although this can be a risky prediction, there are many enthusiasts that believe that’s certainly possible. His followers were answering that it may be possible to reach these levels and even move higher than $500,000. One of the main reasons used was related to inflation growing and increasing the dollar value of Bitcoin in nominal terms.
The cryptocurrency analyst Plan B, which is known for creating the Stock-to-Flow (S2F) model for Bitcoin, considers that it may be possible for Bitcoin to reach similar levels. If the S2F model is followed by Bitcoin, then we could see the largest virtual currency reaching and surpassing the $100,000 barrier in a few years.
Bitcoin is currently being traded around $10,700 and it has a market capitalization of almost $200 billion. In the last few weeks, Bitcoin has been traded between $10,400 and $10,900 without large price fluctuations.