Two of the largest cryptocurrency tokens, Bitcoin and Ethereum have defied several odds over the years. Bitcoin was roughly stable over the past 24 hours, suggesting that investor enthusiasm for Taproot’s upgrade of the Bitcoin blockchain during the week is starting to wane.
Ethereum, the largest altcoin suffered a few speculations as well, post-upgrade. Nonetheless, both tokens have enjoyed surging adoption across the globe.
US Global Investors director Frank Holmes spoke about it in an interview. As per his projections, BTC and ETH could end up in seven and six figures respectively over the next decade.
First, it shed light on the biggest cryptocurrency. He believed that the scarcity and growing adoption of Bitcoin were major catalysts for the price spikes over the years. He also incorporated a network theory to provide support for his bullish projection.
“It’s Metcalfe’s law. And because Bitcoin is capped at 21 million coins and Metcalfe’s Law says the price can rise exponentially. It continued to happen through other channels.
The head of the investing firm which had $4.6 billion in AUM, used PayPal as an example to explain his point better. “PayPal has allowed investors to buy fractions. And then as it went up, they could take a piece of it out and buy a new TV. Or a car. So the idea that with Robinhood you can buy a fraction… you don’t have to pay $ 68,000, you could pay $ 680, ”he said.
Also, he elaborated further,
“We have the ETF [exchange-traded fund] which allows the general public, even though it’s a derivative of a derivative, you can still buy a fraction. And, all those allow greater adoption globally. So I think that it could easily be a million dollars, down the road. Might be in the next 10 years.”
Metcalfe’s Law, named after the founder of Ethernet, states that the value of a network increases with the number of possible connections. Whether it is the possibility of a Bitcoin price spike or even predicting its collapse, according to the report, this network theory could also predict whether BTC was undervalued or not.
Moving on to Ethereum, he projected more than a 2000% hike.
“It’s $ 100,000 [for Ethereum]. This is because the supply is blocked. Every time you cap the supply and there is more adoption, those prices will go up as Metcalfe’s Law suggests. We’re going to grow exponentially and that’s what we’re seeing.
What’s more, its supply rate of change has approached zero since the London hard fork. Yet, it is one step in the direction of being deflationary.
Overall, although a corrective phase does appear intermittently, strong hands continue to focus on their bullish goals.
