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Guy On Skype Says Bitcoin Headed To $400,000 (UBS Chairman Says Probably Not)
Well, here we are the morning after Bitcoin futures launched on the CME and "mass hysteria" hasn't taken hold. There are no "dogs and cats, living together" and no "human sacrifices." Cue Bill Murray:
Bitcoin itself took a pretty dramatic turn for the worst following the launch and futures quickly converged with spot. Things stabilized after that:
Meanwhile, Ronnie Moas, founder of one-man research operation Standpoi
BitCoin can go to $400K or even higher – assuming an infinite number of traders with an infinite amount of capital – and no regulation, sudden reduction of disposable income, reduction of debt/loan abilities of traders, a major war, that the internet doesn’t suddenly go down and probably quite a few other things.
I suspect there are algorithms that if the number of potential traders can be estimated, their capital reserves, ability to assume risk, etc., etc., you can determine the maximum price any asset can achieve in a market – even a global market. It’s essentially a basic potential market calculation and is done with automobiles, new houses, etc. – but in all these market calculations, there is near zero possibility of governments producing counter products at lower cost and or regulating the respective private products out of existence. Failing to be able to accurately account for all of the max market variables that might affect BitCoin in the coming months – making guesses at the potential value it might achieve before reality takes effect – are ludicrous. It’s a gamble, let’s not pretend otherwise.