By FintechNews staff
As we enter 2022 we live in a hugely uncertain world, with COVID-19, record debt levels, rising inflation, socioeconomic inequalities and rising geopolitical tensions. I submit to you in turn that Bitcoin’s monetary policy and general structure is one of the very few things on the planet that are not going to change over the next 10 years, or the next 20 years, or even the next 30 years. And that stability is a source of strength for anyone holding bitcoin, and a major incentive for anyone considering a long-term position.
So what of the future bitcoin price? Given the supply is fixed, the only element that determines price is demand – from new buyers that don’t yet hold bitcoin, but also continued demand from existing holders continuing to accumulate and hodl – i.e., how long is that time period? It’s nigh on impossible to accurately predict either future demand from newcomers, and continued hodling demand from current bitcoiners. Therefore any models seeking to predict future price are almost by definition junk.