From a new Bitcoin price prediction model to a big tease from EOS co-founder Dan Larimer, here’s a look at some of the stories breaking in the world of crypto.
Bitcoin
A crypto analyst known in the industry as Plan B just released a new prediction model that indicates Bitcoin will hit $55,000 in 2020 or 2021.
The model analyzes the potential impact of Bitcoin’s coming halving, which will cut the block reward given to miners in half and further slow the production of Bitcoin’s finite supply, which is capped at 21 million BTC. Halvings have historically had a positive impact on the price of Bitcoin, and according to Plan B, the increased scarcity will once again drive value.
Plan B compares the stock-to-flow (SF) ratio of Bitcoin and precious metals to predict where the price of BTC is heading. Stock is the size of the existing stockpiles or reserves, while flow is the yearly production. According to the analysis, the coming halving, which is set to happen in May of 2020, will likely place Bitcoin’s stock-to-flow valuation close to gold.
“Next halving is May 2020. Current SF of 25 will double to 50, very close to gold (SF 62). The predicted market value for bitcoin after May 2020 halving is $1 trillion, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model…
People ask me where all the money needed for $1 trillion bitcoin market value would come from? My answer: silver, gold, countries with negative interest rate (Europe, Japan, US soon), countries with predatory governments (Venezuela, China, Iran, Turkey etc), billionaires and millionaires hedging against quantitative easing (QE), and institutional investors discovering the best performing asset of last 10 years.”
Spanish banking giant Santander says it’s Ripple-powered One Pay FX remittance app, which launched early last year, has seen a 230% growth in monthly volumes from May to December of 2018.
The app lets people send euros to any eurozone country, or dollars to the US.
Meanwhile, the Singapore-based crypto exchange Bitrue just added three new XRP-based pairs and now has a total of 34 coins paired with the digital asset.
Bitrue@BitrueOfficial
