A very well renowned personality over the world, John McAfee had been quite popular in the crypto space as well due to his optimistic views for bitcoin. Although the bear market might have shattered the confidence of many, McAfee stands still on his prediction that bitcoin will reach a $1 million mark.
Advocating cryptos for a long period of time, previously, McAfee shared bullish sentiment related to the price of bitcoin. He is still confident and optimistic about bitcoin as he believes that bitcoin price will skyrocket to $1 million in 2020. In this regard, he said:
I’m just a very conservative man. I said one [$1 million] and I’m sticking to one.
In near recent, McAfee backed his claims with a logical explanation. While providing clarifications for his prediction, McAfee said:
Let’s get real, there are only 21 million bitcoins. Seven million of which have been lost forever, and then, if Satoshi [bitcoin’s anonymous creator] is dead, add a few more million.
Bitcoin, unlike fiat currencies, has a finite supply. This means that not more than 21 million bitcoins will be ever created. Once all the bitcoins are created, they will only circulate in the system. And surprisingly, due to several incidents, a huge number of bitcoin has been lost forever. So, technically, less than 21 million bitcoins will ever circulate in the system.
A few months ago, at the beginning of August, about 85% of the total bitcoin supply was circulated. At that time, it was estimated that roughly 3.15 million coins will be mined in the next 120 years. After that, as said earlier, bitcoin will not be created and only those in the circulation will be utilized by people.
Besides price prediction, McAfee also elaborated his take on the future of bitcoin. Extending his positive remarks for the world’s largest cryptocurrency by market cap, McAfee said:
In any case, just run some numbers. If bitcoin gets to be 5% of world financial transactions, which, you all know it will….maybe 10% or 20%……[then bitcoin would be worth] $10 million per coin, based on those numbers.
As bitcoin is the world’s truly decentralized cryptocurrency, the price of bitcoin is only dependent on the fundamentals of supply and demand. This means if bitcoin demand increases than its supply, the price of bitcoin is likely to rise. As next year bitcoin halving, a phenomenon where the reward of bitcoin miners reduces by half, will take place, the supply and demand gap of bitcoin is expected to change and widen.
Although McAfee supported bitcoin, he commented that bitcoin wasn’t suitable for people seeking privacy. As bitcoin is built on a public blockchain, people can view transactions and even see other party’s entire wallet balance if they wish to. By giving an example, McAfee tried to prove that a lack of privacy in bitcoin wasn’t something desirable by a majority.
He presented a scenario that if a plumber charges $40 for fixing a sink and heads towards the bank for cashing the cheque provided by a person, would that person be comfortable if the plumber is capable of viewing person’s balance and all details of future transactions in and out of the person’s account. He then added:
That’s what bitcoin is. Would you be happy if your bank did that? Please, you know you wouldn’t. We know, if anybody has any sense, and if you understand human nature, then privacy coins will be the winner.
Bitcoin wallet addresses can be looked upon by anyone on the public blockchain to view all relevant details of the transaction. However, if bitcoin users make use if different wallet addresses every time while transacting, they can limit the transparency offered by bitcoin.
Despite undermining bitcoin over privacy aspects, McAfee concluded that bitcoin will turn out to be a store of value. He reconfirmed the fate of bitcoin while concluding that bitcoin will for sure be a store of value. His exact words were:
Bitcoin is a brand, like Colgate. It has nowhere to go but up, but it will only be a store of value, end of story. A store of value which will increase, probably for the next 15 years, so for the next 15 years, don’t worry. I don’t care if it goes down to $3,000 again,” he said. “It’s going to go up, we know it is.
Bitcoin, a volatile asset, has made several millionaires and billionaires so investors are desperately waiting for the next bull run. Besides halving, FOMO (Fear Of Missing Out) can also bring changes to the crypto space so let’s see what course is picked by the price of bitcoin in the future.