The past year was a good one for cryptocurrencies. However, it does not seem to be ending well for Bitcoin as it continued to trade in the red over the past few days. The top digital asset has shed 2.8% over the past week and was inching slightly below $47,500 at the time of writing.
Even with bears pushing through, the bullish outlook for some BTC enthusiasts seemed to continue on to the next year. Take for instance the former U.S. presidential candidate Brock Pierce, who said in a statement that the $200,000 territory is well within Bitcoin’s reach in the next year, provided optimum conditions continue to play out.
The crypto enthusiast, who also co-founded Block.One, noted in a recent interview with Fox Business that the current and expected inflation resulting from excessive fiat money printing would be the main driver behind a surge in the digital asset’s price.
“I will not be surprised if we saw a bitcoin price of over $100,000. It’s even conceivable that it could break $200,000 for a moment.”
Pierce’s prediction might gain some weight from the fact that inflation in the U.S. reached a 39-year high last month at 6.8% after the Fed undertook a year of extreme money printing to provide stimulus to the coronavirus-hit economy.
The entrepreneur also pointed out that Bitcoin could not really provide a hedge against traditional assets due to its volatility and sketchy regulation. However, it continues to be an attractive investment owing to its high yield compared to gold and real estate.
The removal of Bitcoin’s regulatory barrier could also be a positive step towards further adoption and price growth according to Pierce, who added that legislators would first need to be thoroughly informed before forming opinions and laws on the industry. Singling out Senator Elizabeth Warren’s recent criticism, he said,
“I encourage her to continue to be informed. I’m glad that she has taken the time to learn. I’m glad that she has taken the time to form an opinion, but make sure you’ve got the right information before doing that.”
A very similar prediction was made by Pierce at the end of last year when he had, like so many others, declared Bitcoin’s inevitable path to $100,000 by the end of 2021. Well, the end is almost here and the cryptocurrency is closing, nearer to half that value.
On a more macro note, however, the cryptocurrency has grown 72.8% in valuation over the past year. It has further outpaced many investment assets that were once considered lucrative.
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