Bitcoin: ten years of meteoric returns to come

It is no longer surprising that Bitcoin (BTC) is the best-performing asset of 2019. The value of the largest cryptocurrency has more than doubled this year, generating massive returns that reflect the last bull market. But according Keizer Report's Max Keizer, the hallucinating growth of Bitcoin is just beginning.

Generational investment

In an interview with CNBC Crypto Trader on Friday, Keizer advised viewers to "stack satoshis" like they had never done before. The perma-bull reiterated its price target of $ 100,000 per bitcoin and claimed that the leading digital currency will outperform other assets for decades to come.

According to Keizer, it's only a matter of time before six-digit bitcoin becomes a reality. Timing and timing are not important at this stage.

From CCN:

"The timing is indifferent. It will continue to outperform any other assets you could imagine in the next five, 10 or 15 years. Forget the timing. The timing is reserved for people who think that "I will wait and buy it at a better price". It's a bad way to approach crypto. Stack Satoshis!

Read why bitcoin is by far the best performing asset class of 2019.

Until where can Bitcoin go?

Keizer is not alone in predicting a huge bull market for BTC. Heisenberg Capital, a venture capital cryptocurrency company, recently tweeted that it "doubled over the maximalism of bitcoin" before reaching the six-digit price level.

We see the market reject everything except BTC.

This is our dominant investment thesis since 2011.

We are doubling Bitcoin Maximalism with new capital.

As BTC approaches its target of $ 100,000 for 2011, we believe that everything but the BTC will die.

– Heisenberg Capital (@HeisenbergCap) May 5, 2019

And it's not long since Morgan Creek Digital's CEO said that bitcoin will eventually reach $ 500,000 because of the scarcity of its supply and growing demand.

Even if we assume that Bitcoin's trajectory is following its historical trend, we still expect a six-digit price level in the very near future. To see why, we need to examine the main cycles of Bitcoin.

Between the peaks of the first cycle (2011) and the second cycle (2013), bitcoin has gained more than 3,600%. Between the highs of the second cycle and the third cycle (2017), the price has risen by about 1,600%. If we assume a similar halving in percentage growth, the next big bull cycle will see gains of around 800%. That's 800% of the peak of December 2017. That would give us a price of about $ 185,000. This so-called realistic price forecast has recently been presented by YouTuber's sunny decree.

In terms of timing, the cycle mentioned above is expected to culminate about a year after the next halving event, which is currently scheduled for May 2020. Bitcoin's halving events have been known to trigger a sharp upswing. year in advance, which is consistent with the growth we have seen so far this year.

Of course, historical performance does not guarantee future earnings. It can be argued that halving percentage gains is a rather arbitrary way of measuring future performance. There is no fundamental indicator that the next bitcoin parabolic rally should be two times smaller than its previous growth percentage. In other words, the aforementioned scenario is by no means a guarantee.

That being said, long-term holders should be encouraged by the latest developments in the world of cryptography. Some of these developments have been exposed in a recent Hacked article that explains why bitcoin is in full swing. In this context, it is not unrealistic to believe that the next cycle will produce higher highs than the previous peak. Read more: The next Quadrennial Bitcoin cycle has already begun; Here's what investors can expect.

Update BTC / USD

Bitcoin's trading range was cut on Sunday, with prices set between $ 7,900 and $ 8,100. At the time of writing, the BTC award was valued at just under $ 8,000.

The underlying trend remains bullish, with the relative strength index holding above 60 and the accumulation / distribution line reaching a new high.

Bitcoin is facing strong resistance in the region from $ 8,200 to $ 8,300. Not getting out of this range is considered bearish despite the bulls' refusal to yield the land. This is evidenced by the fact that the market has rapidly cushioned the decline for two weeks when BTC suddenly crashed after a whale sold 5,000 virtual currency units.

Disclaimer: The author is the owner of Bitcoin, Ethereum and other crypto-currencies. He holds investment positions in coins, but does not engage in short-term or day trading.

The selected image is a courtesy of Shutterstock. Chart via CoinMarketCap.