Richard Byworth, the CEO of Diginex, considers that two factors will lead Bitcoin to reach USD 175,000 in 2021. He considers that institutional investment and the imminent devaluation of the US dollar will contribute to increasing its value.
Discussions about the fate of Bitcoin’s price among analysts, crypto influencers, and traders seem to never end. The reason is that the main cryptocurrency on the market exerts a huge influence on the price of other crypto assets. For that reason, Richard Byworth, the CEO of the Diginex exchange, predicts that Bitcoin will reach USD 175,000 in 2021.
Byworth said that two simultaneous forces are putting upward pressure on the pioneering cryptocurrency. The first factor involves the US government’s multi-million dollar stimulus packages to address the economic crisis that the COVID-19 pandemic has caused.
This sudden increase in monetary liquidity has led to massive capital investment in cryptocurrencies. At this particular time, large financial institutions are beginning to see Bitcoin as a potential store-of-value asset.
According to the CEO of Diginex, the second factor that is increasing the value of Bitcoin is its scarcity. Following last year’s Bitcoin halving event, the reward that the blockchain’s miners receive had a reduction by half.
The amount of Bitcoin in daily circulation fell short of the increase in demand. Only a few companies, including Tesla and MicroStrategy, are buying 40% of the annual supply of Bitcoin.
Diginex Predicts a Price of USD 175,000
Taking these elements into account, Diginex has created a model to predict where the price of Bitcoin is going. As a result of this exercise, they estimate a price of USD 175,000 per unit before the end of 2021. Currently, this is one of the most optimistic predictions about the price of the cryptocurrency that Satoshi Nakamoto created.
The CEO of the company stated that they believe that the way they are beginning to see institutional adoption is key. He noted that traditional companies and institutional mutual funds are seriously considering buying Bitcoin. They think of Bitcoin as a store of value in the face of a possible depreciation of the US dollar.
The change in the regulatory landscape completes the list of stimuli that would bring the price of Bitcoin to the level that Diginex raises. A growing number of institutions, such as the Commodity Futures Trading Commission (CFTC), are working on regulations for the cryptocurrency market.
Final Comments on the First Cryptocurrency
Regarding the anonymity of Bitcoin, the CEO of Diginex clarified that the cryptocurrency is not particularly private. He explained that it is easy to track transactions through the blockchain, which the FBI does to catch criminals.
Richard Byworth added that Diginex uses tracking tools to trace the origin of funds coming onto the exchange. He believes that the idea of Bitcoin being anonymous could be a bit old.
To conclude, Byworth discussed Diginex’s cryptocurrency EQUOS, which will not have a pre-sale like other native exchange tokens. However, he said that users can earn it by making transactions or mine it by staking within their platform. Besides, it will have a limited supply of 1,000,000 tokens, which they expect to issue in around 2 years.
By Alexander Salazar
