- Bitcoin prices predicted: $100,000 after 2020, $1 million after 2024, and $10 million after 2028
- After 2028: Hyperbitcoinization
Analyst planB’s latest update on Bitcoin price based on Stock-to-Flow model is the most bullish one ever.
“This is becoming scary”
starts the analyst and rightly so as he draws the price of Bitcoin after the last Bitcoin reward halving in 2028 to be $10 million.
A Model to Analyze the Scarce Metals and Digital Objects
Stock to flow model is used for commodities that are scarce like gold and silver. Bitcoin, with its supply fixed at 21 million, this method is best to analyze the value of BTC.
Stock to flow ratio of a commodity is the amount of the assets held in reserves divided by the amount produced every year. Gold has the highest SF and the next Bitcoin halving will take its SF very close to that of gold’s SF at 62.
In its latest update, PlanB made a few changes to his model, using October months’ close price from every year, 2009 to 20018, instead of December. The current price in July 2019 is also not used for making the model.
This data he says has Stock-to-Flow model fit improving to 99.5 percent R2. Previously he explains, the model was experiencing an error, mainly caused by November 2013 and December 2017’s all-time high prices. And
“sampling without ATH gives less noise.”
The Bitcoin prices predicted by analysts PlanB are $100,000 after 2020, $1 million after 2024, and $10 million after 2028.
This is becoming scary: using Oct instead of Dec data, Stock-to-Flow model fit improves to 99.5% R2! Model error was mainly caused by Nov2013 and Dec2017 ATH, so sampling without ATH gives less noise. Predicted #bitcoin prices increase: $100K (2020+), $1M (2024+), $10M (2028+)… pic.twitter.com/1WX6LOVxZW
— Plan₿ (@100trillionUSD) July 14, 2019
So, what about after 2028?
Traditional finance investor, PlanB says when the market capitalization of Bitcoin goes above USD M1 at $3.5 trillion and M2’s $15 trillion, it won’t be useful anymore to measure BTC price in USD. That would be the period of Hyperbitcoinization.
As planB recently shared with Stephen Livera in his podcast, that period would have everything will be priced in BTC instead of the US dollar.
We have already starting to see signs of Bitcoin being used as a hedge in countries like Venezuela, and Zimbabwe where their national currency is ridden with hyperinflation.
With the global economy slowing, debt reaching record levels, and governments turning to printing money as a solution, Bitcoin has the macro factors working in its favor to becoming a store of value.