Social Capital CEO Chamath Palihapitiya recently predicted that Bitcoin will reach $500,000 per coin by the end of this year, based on he trajectory of previous halving cycles.
The billionaire venture capitalistâs prediction blows past those of bank analysts at firms like Standard Chartered and Bernstein, who believe the halving will be a significant but more modest catalyst for price appreciation over the next 18 months.
In an episode of the All-In Podcast published on Friday, Palihapitiya reviewed Bitcoinâs historical price performance over specific time periods following each one of his historical halving events. For example, the assetâs price multiplied 7.8x within the 18 months following its third halving in May 2020.
The âhalvingâ is a function in Bitcoinâs software that cuts its supply inflation rate in half every 210,000 blocks â roughly once every four years. Theoretically, these events help create a supply shock for BTC that drives up the assetâs price.
Bitcoinâs fourth halving occurred on April 20 2024, reducing Bitcoinâs approximate daily issuance from 900 BTC to 450 BTC.
Using Bitcoinâs performance after its third halving as a model, Palihapitiya projects that Bitcoin will reach $497,977 by October 2025. When applying an average of Bitcoinâs price performance between its second and third halvings, that projected price rises to $1.14 million.
To drive demand, the CEO highlighted an âincreasing body of countriesâ that may be aiming to adopt a dual currency standard, much like El Salvador.
âThey will look at their local currency, and then they will look at Bitcoin, and then they will say âboth of these two things are neededâ,â Palihapitiya explained.
âOne when youâre transacting on a daily basis for random goods and services, and two, when you need to buy a permanent asset that needs to have residual value â youâll use something like BTC,â he continued.
Should Bitcoin truly reach over $500,000 per coin, the investor believes Bitcoin will âcompletely replaceâ gold, and even begin to have transactional utility for hard assets.
Palihapitiya also acknowledged the significance of the newly launched Bitcoin ETFs, which have âcommercialized Bitcoin,â and are allowing it to âcross the chasm.â Based on their powerful inflows this year, analysts at Standard Chartered have called for Bitcoin to reach $200,000 by the end of 2025.
The post Billionaire Chamath Believes Bitcoin Can Reach $500k By 2025 appeared first on CryptoPotato.
The billionaire venture capitalistâs prediction blows past those of bank analysts at firms like Standard Chartered and Bernstein, who believe the halving will be a significant but more modest catalyst for price appreciation over the next 18 months.
How Bitcoin Performs After The Halving
In an episode of the All-In Podcast published on Friday, Palihapitiya reviewed Bitcoinâs historical price performance over specific time periods following each one of his historical halving events. For example, the assetâs price multiplied 7.8x within the 18 months following its third halving in May 2020.
The âhalvingâ is a function in Bitcoinâs software that cuts its supply inflation rate in half every 210,000 blocks â roughly once every four years. Theoretically, these events help create a supply shock for BTC that drives up the assetâs price.
Bitcoinâs fourth halving occurred on April 20 2024, reducing Bitcoinâs approximate daily issuance from 900 BTC to 450 BTC.
Using Bitcoinâs performance after its third halving as a model, Palihapitiya projects that Bitcoin will reach $497,977 by October 2025. When applying an average of Bitcoinâs price performance between its second and third halvings, that projected price rises to $1.14 million.
Where Will The Demand Come From?
To drive demand, the CEO highlighted an âincreasing body of countriesâ that may be aiming to adopt a dual currency standard, much like El Salvador.
âThey will look at their local currency, and then they will look at Bitcoin, and then they will say âboth of these two things are neededâ,â Palihapitiya explained.
âOne when youâre transacting on a daily basis for random goods and services, and two, when you need to buy a permanent asset that needs to have residual value â youâll use something like BTC,â he continued.
Should Bitcoin truly reach over $500,000 per coin, the investor believes Bitcoin will âcompletely replaceâ gold, and even begin to have transactional utility for hard assets.
Palihapitiya also acknowledged the significance of the newly launched Bitcoin ETFs, which have âcommercialized Bitcoin,â and are allowing it to âcross the chasm.â Based on their powerful inflows this year, analysts at Standard Chartered have called for Bitcoin to reach $200,000 by the end of 2025.
The post Billionaire Chamath Believes Bitcoin Can Reach $500k By 2025 appeared first on CryptoPotato.
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