Famous crypto investment firm Pantera Capital is placing the world’s largest cryptocurrency Bitcoin (BTC) to surprising new levels by market cap. Pantera Capital has announced an important price induction model for the Bitcoin price.
Pantera Capital: An accurate model points to $ 700,000 for Bitcoin price!
In the company’s April letter to investors, Pantera Capital stated that one of its models comparing the number of new Bitcoin users with the price of the leading cryptocurrency revealed a price of $ 700,000. According to the model, the price of BTC increases by $ 200 for every 1 million new Bitcoin users. Pantera Capital says the model delivered accurate results every time, except in February 2016, when the price was delayed.
If the Bitcoin price continues to increase by $ 200 each time a million users enter the market, the model is about 1% from BTC’s current value of $ 54,000. It suggests that it could increase by 200. Pantera Capital adds:
3.5 billion people have smartphones, the only requirement to use Bitcoin. In the long, long term, it’s unclear why most of them will not use Bitcoin. This is nothing more than posting photos on Facebook. Using these relationships, we can assume a possible terminal value for Bitcoin. If the price continues to increase by $ 200 per million users, the Bitcoin price will gain an incredible $ 700,000 worth. At this level, Bitcoin will be worth $ 15 trillion, or 15% of the global M2 (money supply). This seems totally doable.
Pantera Capital: This altcoin market is where the biggest gains will be
Pantera Capital is not just on the mega rise in Bitcoin. The firm also closely monitors the rest of the Bitcoin + non-Ethereum market share, which tracks the growth of all cryptocurrencies except BTC and ETH. Pantera Capital suggests that you get the best deals and the biggest gains can be found outside of BTC and ETH, as the rest of the industry is gaining against the two largest crypto assets by market capitalization. Pantera Capital adds:
Bitcoin is a solid proxy for the Blockchain revolution. But not everything. Bitcoin is about half the market cap of the industry, but probably less than half of the future opportunities… Bitcoin + non-Ethereum market share has more than doubled from 16% to 34% in the past three months. Watch this space. This altcoin market is where the biggest gains will be made.