ADVFN CEO Clem Chambers recently noted that Bitcoin “can really get back to $20,000 a coin.” The financial services company executive added that the flagship cryptocurrency could even hit the $200,000 and then $2 million mark, “if the market mechanism of the asset remains viral.”
To support his bullish predictions, Chambers shared his company's log chart which he says shows bitcoin and other cryptocurrencies “have been growing and behaving logarithmically.”
According to the Forbes contributor, bitcoin is a “logarithmic asset” because its price movements over the years indicate it has “a compound growth of 26% per time period.” Chambers further explained that “ten periods of 26% gets you to a total of 1,000%.”
These figures are comparable to billionaire Warren Buffett’s “portfolio profit rate.” He also noted that “this non-linearity is exciting” and is the main reason which could potentially lead to bitcoin’s price reaching the near-$20,000 mark again. After hitting that mark, Chambers stated it could hit $2 million.
“Another x10” For Bitcoin
The CEO then shared another ADVFN chart showing bitcoin’s price “growing logarithmically” over a 6-year period, from 2012-2018. Per Chambers, this chart illustrates “six years of log power trading and growth.”
The financial markets analyst further stated that by removing “shitcoins” (which are usually not mineable or decentralized) from the crypto market, “another x10” price increase “or a couple of hundred billion” for bitcoin is possible. He refered to a BTC “price target” chart to back his predictions.
The markets researcher concluded:
So the trade is 100% loss versus a good chance of 1,000%+ gain. As long as you right size your position it’s an irresistible trade. However, if you are greedy like me you want to see the bottom of the market or at least signs this bear market trend is over and for now we are not there yet.
Notably, this isn’t the first time Chambers gives us bitcoin-related insights. As CryptoGlobe covered, he recently stated it’s “quite likely” it’ll hit $100,000. The CEO’s bullish bitcoin price prediction has come at a time when the cryptocurrency market, this past week, lost a combined $22 billion, according to data from CryptoCompare.
Logairthmic Bitcoin price chart and Bitcoin's Price movements chart from 2012-2018 via ADVFN.