While the Bitcoin price was on the decline for the second half of 2019, the reality is the crypto asset still roughly doubled in value over the course of the entire year. In fact, there were only two major cryptocurrencies that outperformed Bitcoin in 2019.
On Friday morning, Nexo co-founder Antoni Trenchev told Bloomberg’s Matt Miller why he thinks the Bitcoin price could continue to rise to the $50,000 mark in 2020.
“I think that, very easily, we could see Bitcoin going up to $50,000 by the end of this year,” said Trenchev.
Trenchev’s Nexo platform allows users to borrow fiat currency against their cryptocurrency holdings. According to Nexo’s researchers and analysts, a massive rise in the Bitcoin price could occur due to the upcoming halving event. A halving event in Bitcoin is when the amount of Bitcoin generated by the network roughly every ten minutes is cut in half. This event takes place about every four years.
“The last time this happened, Bitcoin rallied 4,000%,” noted Trenchev.
Trenchev also pointed out that Bitcoin is mostly uncorrelated to the rest of the market, providing asymmetric returns for holders of the cryptocurrency.
Miller pointed out that Bitcoin hasn’t grown much as a payment option since he tried to live on the digital currency for a Bloomberg investigative report back in 2012, but Trenchev claimed the main selling point of Bitcoin has evolved over the years.
“The initial idea was: We’re going to pay for coffees with Bitcoin,” said Trenchev. “But, obviously, that has failed to materialize. The narrative, now, that is much more persuasive is that Bitcoin is the new gold, and we see confirmation with the turmoil that we have this morning — Bitcoin is rallying on par with gold.”
Trenchev added that the Bitcoin price would reach the $50,000 level if the crypto asset is able to take hold of 10% of the current gold market. The Nexo co-founder claimed that, eventually, people will only be able to afford to buy satoshis rather than whole Bitcoins for their portfolios.
Members of the cryptocurrency industry are not the only ones who are aware of Bitcoin’s potential, as members of the United States Congress also envision a world where this technology could have a major impact on society. Congressman Patrick McHenry (R-NC) has said Bitcoin has enormous long term value, while Congressman Brad Sherman (D-CA) is worried about the cryptocurrency’s potential impact on the U.S. dollar as the major reserve currency in the world.