Bitcoin to as much as $1 million? Perhaps.
In the past several months, there have been many predictions as to where the digital currency is headed to in the next few years. Some say it could be worth tens of thousands of dollars, while some are making the case for six figures – of course, its detractors are saying it’ll be worth peanuts.
Wences Casares, founder of Lemon and CEO of Xapo, an offline bitcoin storage firm in Palo Alto, California, sat down with the Wall Street Journal to discuss the virtual currency. After just raising $20 million in investment, he noted that some bitcoiners don’t really understand or appreciate the real value of bitcoin.
To Casares, one bitcoin will be worth anywhere from $500,000 to $1 million within the next 10 years, a very optimistic prediction, especially when the cryptocurrency has fallen below $500 this week.
He conceded that there will be volatility over the next few years, but he’s not too concerned about it. Casares said that in a time of smartphones and mobile devices, bitcoin offers consumers with security and a method to safeguard their wealth, especially in countries that maintain unstable currencies, such as the Argentine peso or the Venezuelan bolivar.
Who is investing in bitcoin? Two groups: in the developed world, people who want to add bitcoin into their savings and investment portfolio. In the developing world, individuals that are speculating that bitcoin will shoot up to the moon.
Casares said that it’s natural for governments and central banks to be wary of bitcoin but noted that the recent statements and regulatory announcements is a step in the right direction in order to legitimize it and help it move forward. It’s important to tax bitcoin like anything else in society.
Bitcoin will mature and develop.
