Bitcoin will blow past $20,000 but McAfee will eat his own…
2019 is coming to an end and Bitcoin price is currently trading at $7,265, down 63% from its all-time high of $20,000.
But according to Blockchain Capital’s bold predictions for next year, Bitcoin could very well make a new ATH. But that doesn’t mean we will get to see $500,000 by the end of 2020.
In November 2017, John McAfee clarified that this price is based on the model that predicted $5,000 at the end of 2017 but Bitcoin accelerated much faster than his model assumptions. As such, he re-upped the bet from $500k to $1 million.
But Blockchain Capital doesn’t see this happening, at least not in 2020.
Coming onto the 7th bold prediction for the Bitcoin network, it involves Bitcoin fees that the company is predicting to exceed $100 on the back of demand for Bitcoin transactions next year.
This prediction Spencer Bogart, General Partner at the company says is a controversial one but an “inevitable part of a successful Bitcoin trajectory.”
Given that the next block halving will cut down the rewards from 12.5 BTC to 6.25 BTC, as Bogart says this would be a “positive development.”
Growth for Stablecoins but Tighter Regulation as well
Blockchain Capital sees growth in the crypto market next year with the prediction of a crypto company being acquired for more than $500 million. The value locked in DeFi is projected to hit a whopping $5 billion, currently, it’s nearly $672 million.
On the regulatory side, KYC/AML is projected to be DeFi’s “primary regulatory battleground.” But a federal judge might rule against the SEC in a crypto case.
When it comes to stablecoin, the company particularly talks about USDC, a US dollar-pegged stablecoin launched by Coinbase and Circle. It is expecting to see a 300% growth measured by transaction value, issuance, market cap, and trading volume.
However, FinCEN and FATF will hold stablecoin to a stricter standard than even paper cash by “requiring broad application of the travel rule.”
As for social media giant Facebook’s project Libra, Blockchain Capital predicts that it will receive the green light for a dollar-backed stablecoin, in the light of competition from China.
Amidst all these positive predictions the company also expects the privacy coins to continue to be delisted from major exchanges. Also, “not a single 2020 L1 network launch achieves top 10 status, as defined by network value.”