Wences Casares, a PayPal director and CEO of Xapo, a project that provides cryptocurrency custodian solutions, recently suggested that if Bitcoin manages to succeed in the future, there are strong chances that the asset will see a price rise to about $1 million.
Casares is very open about his support for bitcoin and shared his views regarding the asset in a recent post. The chances of bitcoin failing are 20 percent in Wences’ views but with so much influx of new users and more people getting involved in crypto holdings and conducting transactions, the chances of bitcoin succeeding go up to 50 percent. Further predicting the asset’s price if it succeeds, he says:
If Bitcoin does succeed, 1 Bitcoin may be worth more than $1 million in 7 to 10 years. That is 250 times what it is worth today
This sits in contrast with his colleagues at PayPal who have not been very welcoming of bitcoin and other cryptocurrencies in the past. Former CEO of PayPal, Bill Harris, has also completely snubbed bitcoin as something of value. Moreover, remarks from the current Chief Executive Officer (CEO) of PayPal hint that the digital asset is not accepted as a real currency by the financial giant:
I have always thought that crypto was more of a reward mechanism for implementing blockchain, as opposed to really a currency.
But recent remarks from Wences suggest that the vibe around this asset is slowly changing. He said that with chances of bitcoin succeeding being at 50 percent, investment portfolios should invest at most one percent in bitcoin. Although Wences said that there are chances of bitcoin both failing and succeeding, he weighed in more on the success side, adding:
Bitcoin is a fascinating experiment but it is still just that: an experiment. As such it still has a chance of failing and becoming worthless. In my (subjective) opinion the chances of Bitcoin failing are at least 20%. But after 10 years of working well without interruption, with more than 60 million holders, adding more than 1 million new holders per month and moving more than $1 billion per day worldwide, it has a good chance of succeeding. In my (subjective) opinion those chances of succeeding are at least 50%.
This is a tall claim and almost coincides with John McAfee’s remarks, a well-known cybersecurity expert and businessman in the crypto space, who claimed bitcoin will cross the one million dollars mark in the near future. McAfee asserts that the value of bitcoin is not accurately being depicted by its price. Although the price is relatively steady, its value overall is growing with developments being made and more people becoming aware of it. He recently said:
I don’t care if its a penny today, it’s going to be 2 million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.
In order to understand these claims, one needs to look at the factors on which bitcoin’s price depends. In the market, bitcoin’s price is mostly dependent on speculation — people believing that the asset is worth something and will continue to be more valuable in the future. Since there is no physical backing of the asset, many people regard it as a scam that will end as time progresses and new developments take place. This prevents entry of new money and new people into the crypto space.
Since bitcoin is a decentralized peer-to-peer currency, it is not regulated by governments across the globe which has led to issues like money laundering and illegal usage at a large scale.
Other than its negative aspects, bitcoin has many positive aspects too. The network established by bitcoin is global, transparent and trustless. Payments can be made across borders in minutes with complete transparency. As the facilities that are provided by bitcoin and other cryptocurrencies are being highlighted, developments are being made so that more regulations are imposed on this nascent world, making it attractive to not only institutional investors but also to large financial corporations like PayPal.
The recent remarks from the board member of PayPal, Wences Casares, hint exactly at people’s growing interest in bitcoin. If regulations are put in place and other negative issues are filtered out, it is highly likely that a huge amount of institutional investment and public’s interest will flow into this space which just might take the asset to a price predicted by John McAfee and Wences Casares.