Key Takeaways:
- Adam Back, an early crypto player, says bitcoin’s rise to $100,000 is “quite possible”
- Back projected a price target of $500,000 was achievable in the long term
Bitcoin Could Hit $100,000 This Year According to Adam Back
Adam Back, the founder, and CEO of blockchain technology company Blockstream has said that it’s “quite possible” for the price of bitcoin to hit $100,000 still this year. He went even further to say that a price target of $500,000, in the long run, is attainable.
Speaking to Anthony Pompliano, an entrepreneur and crypto investor, Adam Back projected the price of the original currency could double from current levels around $52,000 and settle near $100,000 by the end of the year.
Adam Back was an active figure in the development of Bitcoin in its early days. Allegedly, he was the third person to ever own bitcoin and one of the first people to exchange Bitcoin-themed emails with Satoshi Nakamoto, the pseudonymous creator of the world’s first cryptocurrency.
The Bitcoin vs Gold Debate
In the interview with Mr. Pompliano, Adam Back compared bitcoin to gold. He said that “in many ways, bitcoin is better than physical gold.” Mr. Back added that should bitcoin compete with gold as a safe haven, store of value, or a hedge against inflation, the price of the leading token could be in the “hundreds of thousands, like maybe half a million even on that basis alone.”
At the current market price of the precious metal ($1,830 per troy ounce), the gold market is worth around $11tn. Bitcoin’s market valuation is currently around $1tn, or about 10% of the capitalization of gold.
In order for bitcoin to reach the size of gold’s valuation, the crypto asset’s capitalization will need to gain about $10tn. In other words, bitcoin will need to jump 10 times to a price of around $500,000 so it could match gold’s current worth.
As to Adam Back’s price projection of $100,000 in 2021, the flagship token will need to double its current market capitalization to levels around $2tn. In April, the token reached its all-time high when it was valued at $1.2tn with a price of $64,800 per coin.