In a Tweet, the head of one of the world’s biggest cryptocurrency exchanges, Binance, has offered some sage words about the art of Bitcoin price prediction. Changpeng Zhao has said that he does have a prediction, although putting a time on it is the hard part.
Zhao Tweeted that he expects Bitcoin to be reaching as high as $16,000 “soon-ish”. However, the ambiguous time frame was on purpose as the CEO opened the tweet by saying: “Lol, price predictions are easy. It’s just hard to be right about the timing.”
Zhao concluded his tweet by giving a reason as to why he thinks that price prediction will be realized, stating that 1.4 billion people are working on getting the price of Bitcoin to that level. Zhao’s tweet, while short and sweet, gave a lot of insight into the possibility of predicting Bitcoin’s price, its current state, and the future potential.
Zhao was responding to the prediction of an anonymous 4chan user predicting Bitcoin’s price would hit $16,000 by the end of October turned out to be wrong, despite getting a few previous predictions right.
There have, of course, been numerous Bitcoin price predictions, most of them coming when the coin is on a rally, and because of its volatile nature, they are often surpassed vindicating the predictors. However, it has become harder to make an accurate price prediction for Bitcoin in recent times, especially when trying to put a date on it.
What CZ has done in his prediction is backed by the fact that Bitcoin will continue to rise into the future, something supported by macroeconomic factors more than guesswork.
More so, CZ’s explanation also makes a lot of sense when paired with the fact that Bitcoin is an appreciating asset and is only going to cut its supply. With mining difficulty increases and rewards halving, the supply will drop, but the demand will go up too, regardless.
The fact that CZ mentions over a billion people working on Bitcoin’s price, he is referring to people who have even the smallest foot in the crypto park – this number is an estimate. Still, it is undoubtedly a number that has also been growing over the years.
It is hard to make an accurate prediction for Bitcoin, but it is a lot easier to back the factors that will influence its price in the coming months and years. Bitcoin will lower in supply, thus increase in demand, not to mention natural demand increase. Therefore, $16,000 should indeed be coming soon, and a higher number to follow as well.