Bitcoin Price Hit Its Lowest in Recent Years

Bitcoin Price Hit Its Lowest in Recent Years

well-known researcher in the field of cryptocurrency nicknamed PlanB, posted a tweet saying that right now Bitcoin price has hit its lowest level in recent years. PlanB, by sharing graphs depicting the evaluation of prices of precious metals such as gold, silver, palladium, and platinum, and reviewing stock-to-flow ratio models, said that Bitcoin price is much lower than its fair and real value, and it is being sold in crypto markets at a third of its real price. The real price of Bitcoin is $10400 per unit.

This researcher stated that Bitcoin is rare, much like gold and other precious metals, but the difference is that Bitcoin can be transferred via digital communication channels in a safe, decentralized, tamper-proof, censor-proof, and efficient system.

He said that after the Halving event that will take place in 2020, and is considered a great occurrence for most businessmen in the crypto market, the price of Bitcoin would rise tremendously.

Halving is an event in which the reward for mining each block is halved. Network reward halving occurs once every four years or once every 210,000 blocks as a part of Bitcoin negative inflation financial policy to reduce the rate of creating new Bitcoins in the network. This event reduces the amount of supply against stable or increasing demand and thus is considered a strong upward drive for Bitcoin price.

With respect to the stock-to-flow ratio, PlanB said that stock price always depends on the amount of available stock, but on the other hand, liquidity depends on the annual production of goods.

If all the conclusions drawn from these graphs by PlanB are correct, considering the fact that stock-to-flow ratio of Bitcoin’s liquidity has doubled (increase in the stock ratio from 25 to 55 percent), it can be concluded that the current $3400 Bitcoin price is very nominal compared to its real value.

This researcher believed that if after the halving of block mining reward, the Bitcoin price were to be its real one in the crypto market, then by now it would have reached to $34,340.

$333,000 Prediction for Bitcoin Price until 2021

Based on the predictions by some of the most prominent investors in the field of cryptocurrencies, the Bitcoin price will reach $333,000. Large exchange BTCC founder and Litecoin developer’s brother caused a twitter storm with his prediction about the sharp rise in the price of number one crypto. Bobby Lee published in his last tweets that Bitcoin will see a rising trend in its price.

Regarding the price volatilities of recent years, extreme falling markets and price growth that have happened in Bitcoin history, he said that “history repeats itself completely.” He further said that taking this repetition and price graphs, Bitcoin price will fall to $2500, before its mentioned rise in 2020. He said that after Bitcoin mining reward is halved, the crypto market will once again have a rising trend, and said that “in the next rising trend, Bitcoin price will reach $333,000 by December 21, 2021; then the market will fall again and will get to $41,000 by January 2023.

Filb Filb, a Bitcoin user, had said in a Twitter post that Bitcoin price will fall to $2500 to $3100, and then in a completely reversed way the value of each Bitcoin unit will get to $333,000. By examining graphs about the internet growth cycle, Bitcoin price volatility curve, and some other factors, he also said in another Twitter post that why his predictions were logical and made fundamental sense.

Bitcoin Is Often Considered as Digital Gold

Perhaps PlanB’s relating Bitcoin to precious metals is due to his different look to the high potential of Bitcoin as a store of value, and he is not the first one having such opinions about Bitcoin. For example, Max Keiser, well-known American presenter, and filmmaker, recently stated that after reviewing Bitcoin’s roadmap, which is known as Whitepaper, and the discussions he’s had with Cypherpunks group, he concluded that Bitcoin is a kind of digital gold, and is more like a peer-to-peer gold. He further added that this cryptocurrency is a decentralized store of value that does not need a third a party to conduct its own transactions and their verifications.