Bitcoin

Adam Back Eyes Bitcoin to $300,000 Even Without Institutional Interest

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Blockstream’s Adam Back, a man cited in the Bitcoin white paper, has come out and given a Bitcoin price prediction for the long term that does not involve much institutional interest. The man, often thought to be Satoshi Nakamoto — although he still denies it — says that unlimited money printing will drive retail investors toward Bitcoin and push the price to $300,000 within five years.

Bitcoin has, since it gained some mainstream interest with its rise towards the all time high price of $20,000, been courting the attention of the bigger money movers in the institutional investment space. The coin has become more aligned to be an asset — although Goldman Sachs disagrees.

This has caused Bitocin some issues though as when the markets collapsed globally on the impact of the Covid019 pandemic, Bitcoin too followed as many institutional investors were quick to withdraw from the volatile and so-called risky asset. 

Still, the holy grail for Bitocin still appears to be mainstream institutional investment in order to drive adoption, as well as the price of the asset. That being said, there are some who feel that there is no more need to go after this market. 

Less investment, more hedge

Having seen the crypto markets collapse in correlation with the stock markets, Back is no longer looking at the requirement of having institutional interest in the Bitcoin market. 

“It might not require additional institutional adoption because the current environment is causing more individuals to think about hedging. And retaining value when there’s a lot of money printing in the world,” he told Bloomberg.

Indeed, the current economic and financial climate seems geared towards a shift away from the traditional ways, especially for individuals and retail interest as money printing, depreciating interest rates, and other factors caused from the pandemic will be negatively impacting those who are not at an institutional investment level.

Holding on 

Back also admitted that he was holding the Bitcoin he was mining in expectation of price appreciation because of the factors mentioned, as well as other small considerations like more people working from home as well as overvalued bonds and real estate investments, which make it difficult to get a decent return on most investments.

He also praised institutional investment fund Grayscale Investments, which is now buying up more Bitcoin than is being mined.

“You have a major sophisticated market player like that with unclear understanding of the value. To me that indicates there’s still a lot of headroom for price appreciation and adoption in the market,” Back added

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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