Raising Bitcoin 2018 Price Target from $5,000 to $7,500

The Bitcoin price has jumped by 84% since my recommendation on the 5th of July I am raising my price target for Bitcoin from $5,000 to $7,500. I am leaving my 2027 price target of $50,000 unchanged for the time being — that 2027 target all good most likely will be raised in the next 12-24 months and/or moved back to 2024-2026.

In order to go from the current quote of $4,177 to $50,000 within 10 years you would need 28% annual compounded growth. I have gotten three times that in just the last six weeks with the 84% gain. Any way that I look at these numbers, my forecasts are looking conservative. It looks to me as though we are at the same point in the adoption curve as we were in 1995 when we went from one million internet users to ten million. The following year the Netscape browser came online and we went from 10 million users to hundreds of millions of users overnight.

I expect that within a couple of years we will have between 50 and 100 million cryptocurrency users — up from approximately ~10 million today. We only have 0.15% market penetration right now — if that goes to 2% or 3% we will get to the $50,000 price target that I set at the beginning of July.

Cryptocurrency is becoming more widely accepted by the day and the exchanges are having trouble handling all of the new accounts that are being registered (as is evidenced by slow customer support). The governments of India, Japan and Switzerland are on board, as are FedEx, Goldman Sachs, IBM, Richard Branson, John McAfee, Max Keiser, Mark Zuckerberg, Bill Gates and many others.

The consensus among the sharpest knives on the block(chain) is that we are going much higher – it is merely a question of how long it takes to get there and how high we go. My target assumes crypto will get to $2 bln by 2027 (versus gold which is now at $8 trillion.

As I mentioned before and highlighted in my 122-page report on cryptocurrency from last month — which is available at my website — there is currently 200 trillion dollars parked in cash, stocks, bonds and gold worldwide. That is $25,000 for every man, woman and child. Obviously, that is not evenly distributed and half of that 200 trillion dollars is in the pockets of the one top 1%.

I am not excited about putting my money into any of those four buckets (cash, stocks, bonds or gold). In my opinion at least 1% of that money is going to find its way into cryptocurrency in the next 10 years and that would bring this industry from a 140 billion dollar market valuation to two trillion dollars — that would be a 1330% return from where we are today.

In my earlier forecast I explained that in order to go from where we are today ($4,177) to $50,000 by 2027 (on the price of Bitcoin) would require annual moves of 28%. If we get annual compounded moves of 38% — the price of Bitcoin goes to $100,000 by 2027. That is actually where I think we are headed. If you look at the penetration right now of 0.15%, this is just starting to gain traction. I think you are going to see at least 2%-3% penetration in the next few years and you will have tens of millions of people fighting over a limited and capped supply of 21 million Bitcoin.

Many of those who hold Bitcoin, myself included, will not be willing to sell — and that will be what forces the price higher.

It should not surprise anyone that people in countries outside the US — where there are unstable currencies — are going to be trying very hard to get a piece of this. I think crypto is going to become part of asset allocation models in the near future and of strategic reserves. There will be cryptocurrency ETFs and hedge funds will have exposure here.

In just the last few weeks, the market cap for cryptocurrency jumped by 50% from 92 billion to 138 billion. The market cap of Bitcoin right now is 69 billion — so that is a 50% market share. There are more than 800 cryptocurrency names below Bitcoin at coinmarketcap.com and their combined market share is equal to that of Bitcoin. There are now ten names with market cap of at least $1.3 billion and in order to crack the top 20 you need a $418 million dollar market cap — that cut off point has jumped by more than 40% from less than $300 mln a few weeks ago.

In just the last few weeks there have been a few people that replied to emails of mine comparing cryptocurrency to tulips — although that may be a good comparison when looking at the bottom 750 names in this 800-name pack, it does not apply to many of the names in the top 50.

For those who ask me what is backing Bitcoin — my reply is what on Earth is backing the US dollar? The US dollar has lost 75% of its value since I was born in 1967 and has lost more than 75% of its value in many other countries (outside the US). Over the course of history most currencies have gone to zero. I think we may finally have an accepted currency that will go in the opposite direction and appreciate in value over time. We are still in the first quarter of a four-quarter game (that may indeed go into overtime).

Most of the growing pains in this industry are behind us and fears regarding security, which are justified, are declining by the day. In my 122-page report, I elaborate on the issue of security, an issue that is absolutely critical for those who open up accounts for themselves. You need at least two-factor authentication and preferably a third layer of protection. Adding that third layer is quite confusing for most people and will require the assistance of a professional to walk you through the process.

I do not agree with placing all of your money in Bitcoin and/or Ethereum. I think you should be diversified and explain via which names to do so in my report and daily notes. Just as Facebook came along and wiped My Space off the map 10 years ago, someone in the top 25 or top 50 right now could end up knocking Bitcoin off of its top position in the next few years.

Some will choose to bet all of their money on Bitcoin while others may decide to bet on the rest of the pack and spread their money out across names # 2 through # 25 — which now have a combined market cap that is about 80% of where Bitcoin is at today. Ethereum is # 2 at $28.4 billion and Ripple is # 3 at $6.8 billion. The spin-off from Bitcoin on August 1 (Bitcoin Cash) is now at $5.0 billion. The top ten is rounded out by six names that are between $1.3 and $2.4 billion — starting with NEO and followed by Litecoin, IOTA, NEM, Dash and Ethereum Classic.

I strongly advise anyone who is investing in cryptocurrency to take a look at my 122-page report before doing so.

There is a big difference in what your expected returns will be depending on what your entry point is. For example, if you act today, you will see 28% annual compounded returns for 10 years if we hit my $50,000 target in 2027. Had you gone into this at the beginning of July, when I made my recommendation, your compounded annual returns to reach that same $50,000 price target would be 37%. If you wait until we cross $5,000 (or $6,000) before acting, your upside to $50,000 starts to move towards 20% annual compounded gains.
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Jihan Wu, Roger Ver to Attend Beijing Reveal of Chinese Bitcoin ‘Mysteries’

China’s role in shaping Bitcoin is the focus of a short but star-studded one-day event in Beijing Sept. 10.

Hosted by Blockchain data provider and over-the-counter (OTC) trading platform BitKan, ‘Shape the Future’ intends to give attendees a more rounded picture of how China affects the Bitcoin industry.

“Chinese companies – most in hardware manufacture, mining and exchanges – have played a huge role in Bitcoin’s growth internationally. Chinese investors and politics have definitely impacted its price,” BitKan comments in a press release about the event today.

“Arguably, Bitcoin could never have achieved its current status and mystique without China.”

Speakers at Shape the Future include Bitmain CEO Jihan Wu, OKCoin’s Star Xu and Leon Li of Huobi.

Well-known faces such as Roger Ver and John McAfee will also be in attendance.

In addition to talks, the event will host the premiere of a dedicated China-centric Bitcoin documentary that BitKan says “promises to answer questions and even explain some mysteries” as well as offer “never-before-seen insights into the history of the Bitcoin industry in China.”

BitKan is a regular participant and organizer of local Bitcoin meetup events featuring guests such as Wu and Ver, who have spoken extensively on the Bitcoin scaling debate during previous engagements this year.

The Shape the Future event will take place at the Sofitel Wanda Beijing on Sunday, Sept. 10.
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Tim Draper Acquires 10% of Anti-Email Spam Blockchain Project Credo

Bitcoin investor Tim Draper has purchased a 10 percent share of Credo, a project that aims to eliminate spam emails. Draper invested ahead of Credo’s scheduled public initial coin offering (ICO). Credo is an initiative of the company BitBounce.

Draper’s credentials as an investor

Draper is widely-known in the cryptocurrency market as an aggressive investor in the leading digital currency Bitcoin. He has already bought a large amount of Bitcoins from different Silk Road auctions. He also actively participated in various ICO projects involving cryptocurrencies. The Bancor and Tezos ICOs were among the successful digital currency projects that were supported by Draper.

Draper’s decision to invest in digital currencies is mainly driven by his desire to diversify his portfolio of investments. Even though there are significant risks in investing in cryptocurrency ICOs, Draper has shown his willingness to take them as long as the projects’ proponents can successfully convince him on the feasibility of their proposals.

Operational concept

The concept of the Credo project is to use tokens as a payment method for an email service provided by BitBounce. The BitBounce email service allows users to send direct email messages to the leaders of various industries. The service also includes incentives to ensure that the recipients of the emails will answer them.

This project appears to be a sound one as BitBounce already has more than 7,750 active users of its email service so far. The company also appears to be processing more than 42,000 emails per day.

On its way to yet another successful ICO?

It is not yet certain if the Credo project will be successfully launched, survive and turn profits in the near future. The support and endorsement of well-known investors like Draper, however, is a proof of its sound concept. Let us wait and see if Draper’s public support of Credo will result in the success of the project’s scheduled ICO.