Bitcoin supply deficit to raise price to $300,000

Popular crypto-analyst PlanB believes that in 2021 the deficit of bitkoin will leadto mass bullish growth.

PlanB, which has developed a popular model for assessing bitcoin stock-to-flow (the ratio of reserves to inflows), believes that next year bitcoin will becomethe leading crypto asset.

Speaking in an interview with SALT Talks, the Dutch analyst optimistically assessed BTC and predicted the price of $300,000 by the end of 2021:

«If you look at the trajectory of whatwe have had over the past 10 years (the asset has reached the level of gold and real estate), then it is logical to expect that Bitcoin will add another 10x or 20x. So by Christmas next year it will be well north of $100,000, and maybe $300,000».

PlanB admits that its forecast sounds extremely optimistic and somewhat amusing for some investors.However, he noted that in the past the price of bitcoin has increased threefold.

#bitcoin pausing before orange and yellow pic.twitter.com/ID7MOQxFWm

— PlanB (@100trillionUSD) December 11, 2020

The analyst namedBitcoin supply deficit and fixed emission as the main catalyst for growthprices in addition to regular halving:

«Scarce assets are worth more thanavailable in abundance. Bitcoin is the #1 absolute scarce asset. You cannot change its supply, even when its price rises. And this is mathematically embedded in the protocol, which in itself is unique.

PlanB has long established itself as a bitcoin maximalist who has no doubts about the potential of the main cryptocurrency.

Anthony Pompliano: Bitcoin is waiting for a good year

Morgan Creek Digital co-founder Anthony Pompliano also expects next year to bevery good for bitcoin - the rate of the first cryptocurrency will reach $100,000.

Pompliano believes that Bitcoin will growfavorable macroeconomic factors will contribute. In addition, the halving of the reward to miners, which occurred in May of this year, should also bring results. Pompliano also noted the significantly increased interest of institutional investors in Bitcoin.

There are currently about 18 available on the market.5 million bitcoins, but, in fact, a much smaller number of coins are freely available, and this will also have an impact on the growth of the rate. Some bitcoins were lost forever. In addition, a lot of coins are sitting in the crypto wallets of long-term investors, who, according to Pompliano, are unlikely to sell their holdings.

The co-founder of Morgan Creek Digital also noted that the best strategy for buying bitcoins is not the expectation of a decline in the market, but the use of averaging at the dollar price.That is, investing the same amounts at certain intervals.