As per a recent report published by a crypto research group suggests that the expected price of the leading cryptocurrency Bitcoin [BTC] might even approach $400k within the upcoming next 10 years, with altcoins following its bullish example.
In line with the June 2020 edition of the Crypto Research Report, researchers predicted the worth of Bitcoin [BTC] along with other altcoins – Ethereum [ETH], Litecoin [LTC], Bitcoin Cash [BCH], & Stellar [XLM] – would get an enormous surge before 2025, which can continue for around 5 years.
The report further adds:
“We believe that Bitcoin remains at the very start of its adoption curve.” The price of $7,200 USD at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 Tln]. If this penetration manages to succeed in 10%, it’s non-discounted utility price should reach nearly $400k.”
This simply means an increase of over 4,000% for Bitcoin by 2030, but ETH, LTC, and BCH are also looking bullish within this scenario, with surges of roughly 1,600%, 5,000%, and 5,400%, respectively. However, XLM would see the most vital hikes: above 11,000% from $0.07 USD to $7.81 USD.
The Liechtenstein-based research group outlined crypto assets based on their target addressable market [TAM], a metric used “to estimate a cryptoasset’s implied future price.” consistent with the report, TAMs for crypto assets embody remittance, money laundering, offshore accounts, store value, online transactions, micropayments, trading, gaming, online gambling, consumer loans, reserve currency, along with several other uses.
Increasing Use For Speculations & Not For Storing
The report also revealed on- and off-chain velocity metrics for altcoins and concluded that the “growth within the number of speculative transactions on exchanges is quicker than growth of utility transactions to purchase goods and services.”
“On-chain velocity” is a metric measured by transactions on a blockchain, while “off-chain velocity” is decided by trading activity on crypto exchanges. While analysing Bitcoin, the researchers outlined the worth of the cryptocurrency and its activity on exchanges both hiked at roughly the same period of time:
“If crypto assets gain adoption for long-term hoarding purposes or for short-term spending on speculation or coffees, the worth of crypto assets will go up,” the Crypto Research Report added. “High velocity on-chain and low velocity off-chain suggests that crypto assets are getting increasingly used for speculation and not for storing.”