Clif High’s estimate that the Bitcoin price next year will reach the price of three ounces of gold may sound bizarre to some, but it is not impossible. He estimates that an ounce of gold will be worth around $4,800 next year. Growth: 300%.
An accompanying Bitcoin price increase from a meager 1,180 US dollars to 13,000 US dollars sounds attractive. It could reflect a repetition of the scenario from 1979/1980. At that time there was an economic crisis in the industrial world.
This link to the historical event is particularly appropriate because High’s calculations and leanings have already proven to be very accurate in the past.
Facts and figures of the Bitcoin revolution
Between 1978 and 1979, the price of gold rose by 120% from USD 207 to USD 455, the highest value in history at the time. Due to the strong oil price, the soviet intervention in Afghanistan and the influence of the Iranian revolution, there was high inflation, which drove Bitcoin revolution investors into the precious metal. Read more about it: https://www.geldplus.net/en/bitcoin-revolution-review/
In January 1980 the gold price then reached a record high of $850 per troy ounce and investors felt weighed in the safe haven – a rise of 310% between 1978 and January 1980.
Finding out how much gold has ever been produced is difficult. Estimates are around 6 billion ounces – that is currently around 375 ounces of gold per Bitcoin, assuming that around 16 million Bitcoins have been mined to date.
The number of ounces to be produced in the future is unknown, but what is known is the finite number of Bitcoins to be mined. In the coming years, around 123 years, a maximum of 4.8 million Bitcoins can still be mined. The whitepaper has a maximum number of 21 million Bitcoins.
Important success factors of the Bitcoin revolution
Mining a Bitcoin revolution will be more difficult than mining an ounce of gold, even though interest in both commodities continues to grow steadily. It can therefore be assumed that the price of both commodities will rise over time – but the recent Bitcoin revolution rise leaves some doubt as to whether gold can continue to secure its status as the most popular asset in the future. Moreover, over the past three years the price of gold has fallen steadily.
Argumentations that either gold is overvalued or Bitcoin is undervalued are already sparking big discussions. The general understanding that Bitcoin will increase in value and is easy to handle is attracting increasing interest from people in a wide range of industries.
Due to the availability and advantages over gold, including transferability and the elimination of unattractive banking practices, the price per Bitcoin has risen steadily over recent times. Even arguments against Bitcoin, such as the resource-intensive Bitcoin mining process and dependence on the Internet, could not stop the share price from rising.
More and more millenials are choosing Bitcoin, even though gold has proven its intrinsic value and existence over hundreds of years. Bitcoin is easier to use and hits the nerve of time.
Bitcoin is decentralized, easy to transfer, harder to falsify and the difficulty to mine Bitcoin increases. These are the core characteristics that are increasingly distributed to the masses in favor of Bitcoin and that may lead to the price per Bitcoin rising even higher than the estimated 13,000 US dollars within 12 months.