Wednesday, April 17, 2019

Bitcoin Below $1 Million by 2020 is Impossible, It’s Pure Mathematics, Says John McAfee

Bitcoin Below $1 Million by 2020 is Impossible, It’s Pure Mathematics, Says John McAfee

While the crypto community has divided into those who strongly believe in cryptos and see Bitcoin as the future of finance and those who are generally skeptical about digital currencies, John McAfee, a British-American businessman and cybersecurity expert, has his own opinion on the future Bitcoin price. His prediction of $1 million Bitcoin price by 2020 is based on mathematics.

John McAfee believes that the Bitcoin price will achieve at least $1 million by 2020, which is justified by mathematical formulas. Highlighting the difference between behavioral economics of digital currency and traditional financial markets, McAfee stated that we can not apply stock market paradigms to predict Bitcoin price movements.

According to the expert’s previous statements, the actual value of Bitcoin is based on the cost of its production (or mining), as well as on the total number of users and transactions on its network. McAfee has also stressed that Bitcoin was not a speculative investment but an instrument that powered a payment protocol working without banks.

Then, McAfee stated that the US dollar is widely used because people trust the regulator that issues and governs its value. When Bitcoin achieves massive adoption, its demand will surge, and there will be no need to issue dollar bills.

As a result, there will be a protocol that puts a pre-defined supply cap over Bitcoin printing – 21 million units – and allocates the task of minting it to miners. Due to the protocol, funds will be transferred more cheaply than by a bank, which will also foster Bitcoin adoption.

John McAfee said:

“People will start using bitcoin for payments and receipts. They will stop using the US dollar, Euro, Chinese Yuan which, in the long-term, devalues these currencies.”

Further, McAfee analyzed the currency’s recent performance. At the moment of writing, Bitcoin makes up $ 5,238, growing by 2.68% in the last 24 hours. It has recovered from the recent trading low of $4,948. According to McAfee, we will need to see a move above $5,360. The expert believes that the coin will have steady growth, that’s why it is impossible for the Bitcoin price to stay below $1 million by the year 2020.

However, it is not unclear why 2020 should become the year when the number one digital coin hits a $1 million mark. For example, if valued at near $5,000, Bitcoin would need to grow by 19,900 percent until December 2020, with an annual average growth rate near 9,950 percent, which seems to be impossible.

John McAfee To Campaign For The 2020 US Presidency

In 2020, the US presidential elections will take place, and John McAfee, who participated in an electoral campaign in 2016, will run for the presidency again. During the next elections, McAfee is planning to use the run in order to promote the rights of the crypto-currency community.

As we reported earlier, McAfee’s political views align with more of a libertarian view, in which he believes the government should have little power or be completely non-existent. In his mind, cryptocurrencies have the power to do this.

Even if McAfee becomes the US president, he will not be able to make the price of Bitcoin make a rapid growth so quickly.

There is a chance for Bitcoin to reach one million, but 2020 is too early for that.

Bitcoin Below $1 Million by 2020 is Impossible, It’s Pure Mathematics, Says John McAfee

Bitcoin Below $1 Million by 2020 is Impossible, It’s Pure Mathematics, Says John McAfee

Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.

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