The OKCoin CEO predicted the price for Bitcoin, which he described as digital gold. The CEO said that in 2021, the price of Bitcoin could break the all-time record, reaching up to $ 100,000.
OKCoin CEO Hong Fang made a statement about Bitcoin and cryptocurrencies in Kitco News. Referring to the similarities and differences between Bitcoin and gold, Fang said that Bitcoin could go up to $ 100,000 in 2021. According to Fang, if Bitcoin reaches 25% of the market value of gold, this price increase is not a dream at all.
We must first ask what is Bitcoin
“Why do you think Bitcoin will rise? We saw a similar scenario in 2017. Experts had said that Bitcoin would rise, but things did not get very well as BTC approached $ 20,000. What’s different this time? ” she asked.
Hong Fang began by talking about Bitcoin as a store of value. He then talked about Bitcoin’s limited supply of 21 million and emphasized its rarity. Stating that Bitcoin is a digital and durable money, Fang said that BTC can be reached from anywhere in the world 24/7. Fang, who also did not bypass the divisibility of Bitcoin, underlined that Bitcoin bears a great similarity to gold because of these features.
What are the differences of this rally from 2017?
OKCoin CEO Fang recalled that there was an ICO boom in the 2017 rally, and that speculative investments have increased. Commenting on the balance between supply and demand, Fang noted that in 2017 the supply was fixed, but demand was highly volatile.
“The dynamics have changed in 2020. The pandemic brought many uncertainties. To answer this, governments and central banks started printing money. People have seen how money gets into circulation. Bitcoin, which emerged in the 2008 economic crisis, was also like a response to the crisis. ”
Fang cited the global market value of gold at $ 9 trillion and argued that if Bitcoin catches even 25% of this market value, the BTC price will go up to $ 80,000 – $ 100,000. The CEO also pointed to the increase seen in corporate and individual BTC investments.
The important thing is “trust”
David Lin: “While gold is a physical asset with a 5000-year history, Bitcoin has a 12-year history and it is a digital currency. Although there is not much volatility seen under it, the same is not true for Bitcoin. What can you say about this? ”
Hong Fang: “The point here is“ trust ”. Whether it’s gold, fiat money or Bitcoin, for an asset to be a reserve asset, people need to trust that asset. Bitcoin is much younger than gold, so time is needed. ”
Lastly, Fang commented on the government’s stance on cryptocurrency and stated that they are always open to dialogue with the government.