Following Bitcoin’s unprecedented $20,000 parabolic rally in 2017 and its subsequent abysmal plunge in 2018, there has been an increasing number of pundits speculating when the leading crypto will see its price reach its five-digit mark again, with the majority of commentators and analysts positing that the flagship crypto still has a long way to go.
As Digital Currency Fund chief investment officer Alistair Milne underscored in a recent Twitter post, while the leading digital asset has taken a hell of a beating last year, he remains bullish despite the massive industry-wide collapse, stating that Bitcoin demonstrates what he termed as an “asymmetric” risk profile.
With over 62,000 followers on Twitter, the Monte Carlo-based entrepreneur noted on social media that early Bitcoin adopters once speculated that the digital asset was an “asymmetric investment opportunity.”
As it would appear, this has now become a reality, as evidenced by the apparent trend across the crypto markets in the last several years. Given the increasing regulatory certainty surrounding the industry, coupled with Bitcoin’s nearly 80% downtrend following its monumental all-time high in 2017, “the asymmetric opportunity is absolutely explicit,” Milne stressed.
Underscoring the diverging forecasts among cryptoanalysts, Milne posited that Bitcoin could either continue spiraling further down “and/or eventually retest its all-time high… at a minimum.”
As the Digital Currency Fund C-suite member further explained, each wave of adoption including the one seen in 2017, is an “order of magnitude bigger than the last.” Should the digital asset’s valuation regain traction once again, the increasing “price expectations of “HODL’ers,” combined with the exponentially multiplying number of consumers, will most likely catalyze Bitcoin’s value well beyond its 2017 all-time-high.
While other industry players, including Placeholder Ventures partner Chris Burniske, surmised that Bitcoin has now lost most of its mainstream steam, Milne begged to differ, noting that the number 1 crypto has reached “mainstream awareness.” As Milne predicted, the slightest sign of development in the crypto markets, combined with a well laid institutional groundwork could trigger a significant amount of FOMO among investors, propelling Bitcoin to new heights.
Furthermore, Milne also claimed that investors are now “very aware that BTC is like trading gold with 100x leverage,” emphasizing the asset’s function as a Store of Value (SoV). In addition, Bitcoin’s inflation rate will also be markedly lower compared to precious metals, suggesting that since “no one appears to doubt the usefulness of gold,” neither should they doubt Bitcoin’s massive potential.