Former Bearish CNBC Host Makes $55,000 Bitcoin Price Prediction Comments Off on Former Bearish CNBC Host Makes $55,000 Bitcoin Price Prediction 868

Bitcoin Price

Bitcoin Price

Photo by André François McKenzie

CNBC Squawk Box host Joe Kernan is predicting a Bitcoin worth in excess of $55,000 after the currency goes through his having event in 2020. Kernan’s sentiment is quite a departure from his original bearish position on the project. He like many others laughed at the idea that bitcoin is a legitimate store of value just a few years ago.

Kernan’s opinion represents a more than 500% price increase from the current market price of Bitcoin which is currently trading at over $10,000 USD.

Halving Will Increase Bitcoin Demand, Reduce Supply

Most analysts agree that Bitcoins block reward moving lower from 12.5 BTC to just 6.25 BTC will be a determining factor in driving the price upwards dramatically. Historical charts marking previous halving events prove that to be true over the long term.

The catch for most cryptocurrency investors will be navigating the short-term. The fear of missing out often drives investors late to the party to buy and weigh more than they should and thus experience significant losses.

The most experienced investors navigating halving events relating to Bitcoin and other blockchains know that markets typically stay ahead of the rest of the general public when it comes to pricing and the impact of a potentially significantly profitable event.

Facebook’s Libra a Catalyst?

Facebook’s Libra project provides a 12 page white paper explaining that part of its mission is to positively impact those that are unbanked. However, even someone newly savvy to the world of Bitcoin like Kernan points out his truth. Kernan maintains that a cryptocurrency can only be as valuable as its blockchain. He also states that Bitcoin’s value in particular comes from the fact that no private company owns it and that people shouldn’t necessarily trust a private corporation interested in farming data for the purpose of profit to act as an unbiased entity and managing the financial transactions of the individual.

Kernan isn’t the only one jumping on Libra. U.S. President Donald Trump recently acknowledged that he is not a fan of Bitcoin and other cryptocurrencies stating that Facebook wants to set a precedent as a financial institution, the company needs to acquire a banking charter. He also went on to admit that he believes having Facebook’s 2 billion users catch on to using Libra would set a bad precedent for the rest of the world’s economic system.

Trump is certainly the most notable politician to chime in and share his opinion of Facebook’s project, but he’s not the only one. House representative Maxine Peters is critical of the project stating that Facebook is essentially trying to start its own bank without going through all of the steps. She also notes the company is launching the project out of Switzerland, a country with famously liberal financial policies and regulations.

In her interview, Peters also notes Facebook is working with 27 other companies. They will all aim to provide financial services to their users. She firmly believes the trends set in motion by Libra and similar projects need regulation.

$100,000 Bitcoin By 2021?

Facebook’s Libra project is impacting Bitcoin the same way halving does. Taking it on a roller coaster ride. Facebook’s announcement initially saw the price increase really quickly. As soon as regulators and politicians started expressing concerns of course, the price cooled off.

That’s why it’s important to keep a long-term vision with regard to halving events. Kernan’s fellow CNBC host Anthony Pompliano is predicting a $100,000 Bitcoin price by 2021. Pompliano believes the first country to adopt Bitcoin on a mass scale will benefit greatly economically.

The philosophy behind Pompliano’s prediction is one of simple game theory. Eventually nations realize they can’t stop something, so they capitalize and become a part of the movement. If he’s right with that sentiment, crypto enthusiasts currently riding the wave stand to gain an enormous amount of wealth.

Only time will tell, but it won’t take long. Bitcoin’s halving event is likely to take place sometime in May 2020.

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