Mark Yusko: Bitcoin can "easily" hit $100k by 2021

04 Jul, 2019 | Updated: 04 Jul, 2019
by Will Heasman
Bitcoin
Mark Yusko: Bitcoin can easily hit $100k by 2021

While price predictions for Bitcoin aren’t anything new, and can sometimes become majorly overhyped, the reasoning behind them can still provide an interesting insight into the future potential of Bitcoin. Now, a brand new auguring has come from Morgan Creek Capital CEO, Mark Yusko, who suggested that thanks to Metcalfe’s Law, Bitcoin could reach $100k by 2021.

In a recent interview with Block TV, Yusko discussed the ins and outs of Bitcoin’s (BTC) value proposition, noting that it can be largely based on BTC’s network effect, and investor speculation. Yusko namely cites Metcalfe's law -  a concept which states that a network’s value is proportional to the square of the number of connected users of the system – in order to reach his price prediction for Bitcoin of $50k – $100k by 2021. 

I look at it like this. If I think about network growth and Metcalfe’s Law, sometime around 2020, 2021, I think we could easily be somewhere between $50,000 and $100,000. That’s a pretty wide range. But I think the challenge of day-to-day price is that the price doesn’t reflect the value,” says Yusko. 

Value doesn't always correlate to price

The VC goes on to explain that bitcoins value isn’t always represented by the market. Back in 2017, while the market was touting $20k per BTC, the true underlying value – in Morgan Creek’s estimation – was around $10k – $11k. 

On the flipside, Yuks admits that Bitcoin at $3000 with “an underlying value of $13,000 to $14,000,” was “a raging buy,” adding, “we still think the underlying value based on Metcalfe’s Law and user adoption is somewhere in the mid-teen thousands.” 

Interestingly, Anthony Pompliano, a partner at Morgan Creek, also recent augured a price point of $100k for Bitcoin by 2021, but offered a different route, noting a supply shock following the 2020 bitcoin halving, as well as other factors such as “large scale institutional adoption, multiple ETF and retail product approvals,” and “the continued manipulation of markets, economies, and currencies by governments around the world.”

$20k by the end of 2019?

Despite the valuation still being lower than $20k, Yusko still believes that Bitcoin can reach its previous all-time –high once again: 

By the end of this year, could we get back to the old highs? I think it’s certainly possible. It all depends on emotion and how many speculators come into the market. But the fundamental holders and the fundamental users are going to continue to stack sats. And they’re going to continue to accumulate or #Buyandhodl as I like to say. Right now it’s not about speculating on price. It’s about gaining ownership of the network. That’s the key to Bitcoin.”

What do you think? Can Bitcoin reach 100k by 2021? Will we break a new all-time high this year, or not? Let us know your thoughts in the comments below!

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