SAO PAULO – While many people want to try to guess the price Bitcoin will be at tomorrow or at the end of the year, for Saifedean Ammous, educator and author of the book “The Bitcoin Standard”, what you need to keep in mind is that in a period more time, the price of the cryptocurrency will be higher.
More specifically, he points out that four years from now, Bitcoin will be worth much more than it is today. During a panel at Expert XP, Ammous said he doesn’t mind short-term swings, although he also doesn’t like to make projections for the price.
“I wouldn’t be surprised if Bitcoin dropped 50% tomorrow or 50% next month […] or if it goes up 50% tomorrow, next month or year. I’ve been studying this for a long time and my pricing model shows that Bitcoin will be significantly above the current level 4 years from now”, he says.
He says he conducted a study of the history of cryptocurrency in which, taking any date, the recorded value is much higher than it was exactly four years earlier. More than that, Ammous points out that the price is usually five times higher in this period comparison.
During the panel, he also commented on the great potential of Bitcoin application, citing that no other cryptocurrency to date has been able to deliver a development of the same level.
Ammous also stated that it is not possible to talk about when Bitcoin will be adopted on a larger scale by the population, as this is an evolving process.
“It’s a gradual process, it won’t be a day that will become a key and everyone will be using Bitcoin, it’s growing every year”, he explains, citing that if the cryptocurrency ends 2021 at around US$ 51,000, it will have an average of an increase of 200% per year over the past 11 years.
“If you told me 10 years ago that this was going to happen, I would say it was impossible, but here we are,” says the expert. “But I think it’s a growth process and it’s going really well, growing really fast and I don’t see it slowing down in any significant way.”
Also asked about regulations and a possible global movement of authorities on cryptoactives, Ammous said that “a lot of governments do not know what they are doing”.
“This is still something new, so we don’t have a clear idea of what they want to do. Most governments will resolve the situation as situations arise, so I don’t think we are at a point where we are seeing very strong coordination between governments on what to do with Bitcoin,” he explained.
In addition, the expert stressed that regulations have no impact on Bitcoin because its operation does not depend on governments or central banks.
“The regulation of Bitcoin is only important for people under the jurisdiction of that particular government, it is not essential for Bitcoin. In other words, if this government bans Bitcoin completely, that will be a problem for people who live under that government and want to use it, but it’s not a problem for Bitcoin because it continues to operate in other jurisdictions,” he concluded.
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