On April 13th,Tim Draper, the billionaire venture capitalist, an early cryptocurrency investor and supporter of up and coming technology companies like SpaceX, proclaimed that Bitcoin price would reach $250,000 by the end of 2022.
During its peak, in December 2017, Bitcoin prices touched $20,000. At the time there were approximately 16.75 million in circulation, valuing the market at $335 billion. Assuming the price of $250,000 per Bitcoin and in the impossible case that no new Bitcoins are mined this would indicate that the market cap would, at the very least be $4 trillion.
Image Source: https://blockchain.info/charts/total-bitcoins
Draper’s comments were welcomed by the cryptocurrency community who agreed with his long-term evaluation of the market. Investors also accepted that $250,000 was a realistic target taking into consideration that mining difficulty was expected to significantly increase and that the limit of 21 million Bitcoin was approaching.
There are those that claim Bitcoin is a bubble and that investors still engrossed in the Bitcoin market hoping to make further profits have missed their opportunity to cash out. However, most that decide to consider cryptocurrencies see that Blockchain technology is much more than just a decentralised store of value.
Bitcoin is a leader amongst the various cryptocurrencies, the first ever blockchain to store and transfer value away from the usual financial establishments. Considering the perspective of value, once all 21 million Bitcoin are mined, what would incentivise miners to continue mining and completing on-going transaction? The only plausible reason why miners might continue mining, are the fees received from completing each transaction still making it worthwhile to keep miners operational.