German bank says Bitcoin will touch $90,000 in 2020


It’s hard to believe that a German bank could be so enthusiastic about Bitcoin especially when Germans are so much recognized for their pragmatic approach to finances and life. And yet, BayernLB has published a report on Bitcoin versus Gold where they anticipate that Bitcoin’s price would touch $90,000 no later than 2020.
The report published at the beginning of October by the Munich-based German bank discloses that the unexpected growth of Bitcoin’s price in 2020 would become achievable due to the following halving event from May 2020 that hasn’t yet been taken into account by the present price that sits below $10,000. We may say that Bitcoin does have a long way to go and it’s normal for us to feel a bit overwhelmed that such a rise could emerge in about a year.
The German bank explains in the report that Gold became the most valuable asset in thousands of years and at the moment the Gold market is much larger than the one encompassing Bitcoin and altcoins because Gold is generally accepted for its ‘store of value’ quality and people don’t need any further education or data about the most looked after asset in the world.
However, things are not the same for Bitcoin which though appeared 10 years ago is still considered as having a volatile nature and is still restricted to the more technical or well-off people (the so-called whales) that can afford to access the new ‘Digital Gold’.
The author of the report is also very much emphasizing that Bitcoin’s supply and demand ratio will act as a powerful engine that will push the price to the aforementioned level. The start point of this spectacular growth would be May 2020 when the halving event takes place and miners’ rewards would be reduced by 50%. Further on, as the following halving events will occur at every 4 years, Bitcoin’s price would continue to grow due to the same supply and demand rule of the market.
Therefore, for Bitcoin to rise even further, we can easily pinpoint several major engines. We have the supply/demand rule that puts pressure on the price as Bitcoin’s units will only ever be 21 million, we’ll continue to see Bitcoin becoming a real ‘store of value’ as Digital Gold that attracts large institutional investors into the market and we’ll probably have a growing usage of Bitcoin as a means of payment due to the various layer 2 applications like Lightning Network that enhances speed and lowers fees. So why shouldn’t we remain optimistic about Bitcoin?

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