The CEO of the investment company Morgan Creek named the reasons why the cryptocurrency cost will rise sharply in the next two years.
The cost of Bitcoin may increase 5-10 times in the next two years, says Morgan Creek CEO Mark Jusko. He argues that the first cryptocurrency will rise in price to $ 50,000- $ 100,000 due to the network effect, the emotions of investors and the number of speculators who want to enter the digital money market.
“When I think of growth in the context of Metcalf’s law (the value of the network is proportional to half the square of the number of this network, – ed.) , I find that the price can easily be in the $ 50,000- $ 100,000 area in 2020 or 2021,” declared Yusko.
He explained that he declares such a wide range because the value of the asset does not reflect the true value, and this greatly complicates the prediction. The specialist said that when the Bitcoin rate reached $ 20,000 in 2017, its real price was $ 10,000- $ 11,000, but when the cryptocurrency fell to $ 3,000, its fair value increased to $ 13,000- $ 14,000 and it became a trigger for active purchasing.
Yusko stressed that according to Metcalf’s law, now Bitcoin should cost $ 15,000- $ 17,000. At the moment, the average market price of the first cryptocurrency is $ 11,747.