Dennis Porto, a Harvard University researcher, recently told Multiplex founder Brian Roemmele in an interview that based on Moore’s law, the bitcoin price would surpass the US$100,000 mark.
Moore’s law, named after Intel co-founder Gorden Moore, refers to Moore’s 1965 finding that “the number of transistors per square inch on integrated circuits had doubled every year since their invention.” Essentially, Moore’s law demonstrates the exponential growth of technology and the rapid rate at which the technology market is expanding.
Like Intel’s integrated circuits and Nvidia’s microchips, bitcoin has risen in value at an exponential rate since early 2009. It has consistently been the best performing asset and currency in the world throughout the past 8 years, with the exception of 2014. According to prominent Wall Street strategist Tom Lee, bitcoin is en route to become the best performing currency and asset again by the end of 2017.
Emphasizing the rapid increase in demand for bitcoin from institutional investors, Lee explained that bitcoin will undoubtedly become the best performing asset of this year and he would easily choose to invest in bitcoin instead of a “basket of US Stocks.” Lee noted:
“I think bitcoin is an underowned asset with potential for huge institutional sponsorship coming. It has a lot of characteristics that are very similar to gold that I think will make it ultimately attractive as an alternate currency. It’s a good store of value. Institutions have to directly buy the coin today through a broker, but both the CBOE and the CFTC have opened up options futures trading, so I think it’s going to grow in holdings.”
There exist many reasons as to why prominent analysts and high profile traders remain confident in bitcoin and its strong rally. One of the many reasons is bitcoin’s adaptability. Bitcoin is considered by most to be digital gold, a safe haven asset and a long-term investment. Investors have been purchasing bitcoin as a wealth management product in order to protect portfolios from economic uncertainty and global markets’ volatility.
But before anything else, bitcoin is a digital currency. Its transportability and high liquidity have been two of its major advantages, and traders have started to prefer bitcoin over gold due to its applications. It can be utilized as both digital gold and a digital currency.
As Lee explained, the liquidity of bitcoin will only increase over the upcoming months at a rapid rate. Some of the world’s largest markets and trading platforms are about to integrate bitcoin, starting with the Chicago Board Options Exchange. Moreover, large-scale commercial banks are actively investing in the possibility of integrating bitcoin. Already, major Swiss bank Falcon has integrated bitcoin and started to offer bitcoin trading services to its clients.
“The first reactions to our Bitcoin services have been very encouraging and we are convinced that by adding three new Blockchain assets we will fulfill our clients’ future needs,” Arthur Vayloyan, global head of products and services at Falcon, stated.
As global adoption of bitcoin as both digital gold and currency continues to increase at an exponential rate, inevitably, bitcoin will reach a value of US$100,000, as predicted by Porto and many other analysts in the finance sector.