Quantitative BTC analyst PlanB says bitcoin’s scarcity will lead to a massive bull run in 2021.
PlanB, who devised the popular stock-to-flow valuation applied to bitcoin, says bitcoin is setting up to be the leading crypto-asset by price next year. Speaking in an interview with SALT Talks, the Dutch analyst was bullish on BTC and predicted the price could reach $300,00 by the end of 2021.
If you look at the trajectory [of] what we had [the] last 10 years, where it could go to the levels of gold and real estate, then I expect Bitcoin to do another 10x or 20x. So, it will go to well north of $100,000 maybe north of $300,000 before Christmas next year.
PlanB admitted his prediction sounded “really bullish” and potentially ridiculous to some investors. However, he noted bitcoin’s price had increased by a similar margin three times in the past and pointed out the asset’s asymmetric returns.
The analyst cited bitcoin’s scarcity and fixed supply as the primary catalyst for the price increase, in addition to the regular halving events.
Scarce assets are worth more than abundant assets. Bitcoin is the first absolute scarce asset. You cannot alter the supply, change the supply even when [its] price rises. You cannot increase the supply because it’s mathematically in the protocol. And that’s very unique.
PlanB also revealed himself to be a bitcoin maximalist and said crypto was operating in a “winner takes all game” that would eventually lead to the erosion of multiple currencies.
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