At least one Bitcoin price prediction foresees the cryptocurrency going as much as five times higher in 2018 – to $75,000.
The Bitcoin price closed 2017 at $13,860 after gaining 1,325% year to date.
This Bitcoin price forecast comes from John Pfeffer, a London-based entrepreneur and investor who served as a partner at private equity firm Kohlberg Kravis Roberts for 11 years and has since founded several entrepreneurial ventures.
In other words, Pfeffer is a seasoned professional investor who hasn’t been involved in cryptocurrencies (he was head of the European retail industry team at KKR).
Pfeffer’s Bitcoin price prediction is based on the likelihood of several major developments that he believes could unfold over the next several years.
And his Bitcoin price target of $75,000 – revealed exclusively to Money Morning– is just an interim target. The catalysts he describes would push the price of Bitcoin several times higher in just two to three years.
Let’s examine this scenario piece by piece…
Becoming a Store of Value Is the Key to Big Gains
After several months of looking into the cryptocurrency phenomenon, Pfeffer produced a 26-page report that was published Christmas Eve.
Given his background, Pfeffer set out to “consider cryptoassets from the perspective of a rational, long-term investor.”
In his analysis, he concludes that the coin that fulfills the role of “monetary store of value” will be the most valuable. And Pfeiffer believes the cryptocurrency with the best chance is Bitcoin.
“It has more users; has decentralized (to the point of dysfunctional) governance; has more hashing power than any other crypto; is highly stable and robust; has been around longest; and has never been hacked,” Pfeffer says in the report.
What’s more, as the current most valuable digital asset, Bitcoin is already serving as the de facto store-of-value cryptocurrency. It’s often referred to as “digital gold,” a nod to the precious metal that has for thousands of years served as a reliable store of value.
Pfeffer says the odds of Bitcoin assuming this role on a large scale are now between 2% and 5%, and “likely much higher.”
From there, he makes a series of Bitcoin price forecasts based on what will happen as the cryptocurrency becomes increasingly accepted as a store of value.