Bitcoin may hit $600k in 2014 under normal situations, says Former Goldman Sachs officials

Former Goldman Sachs Raoul Pal created a simple graph based on the internet and crypto adoption correlation and hinted that Bitcoin is going to boom continuously in the future to give better returns to its buyers. 

On 12 March, Raoul Pal, founder & CEO of Realvision and also former Goldman Sachs fund manager, shared his analysis on the crypto and internet adoption & growth over the years. 

Pal wrote that he took time to analyze all the things perfectly to figure out how the network effect resulted in better impact and also resulted in better values for the crypto prices. 

Pal started his analysis on crypto in 2016 and at that time there were 5 million internet users. According to him 2016 was much better in terms of clear exponential growth. 

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We updated our well known chart of crypto adoption vs the internet (both starting at 5m users). 2021 was an accelerating growth year and the Reed's Law effect of networks built upon networks creating even more exponentiality is clear… pic.twitter.com/MiLu3nPTPV

— Raoul Pal (@RaoulGMI) March 12, 2022

After 6 years, in the present time, the internet has 119 million users and the crypto industry has 295 million users. So crypto adoption surged by 137% while internet use surged by around 76%. So this technology is moving toward faster adoption.

By yr 6 after the first 5m users, crypto has 295m participants and the internet had 119m. Crypto is growing at 137% a year while the internet grew at 76%. As I always say, this is the fastest adoption of technology the world has ever seen… pic.twitter.com/5hkaumxirS

— Raoul Pal (@RaoulGMI) March 12, 2022

Under the same level of consideration, pal noted that even under the worst scenario adoption will shift the numbers of users by around 5 billion users in 2030. 

Using the 76% growth rate (suggesting a near halving of network growth as network matures), we now get to 5bn users by 2030. i.e it becomes THE dominant source of owning, transferring and recording value and contactual terms global. Wow! pic.twitter.com/s6Srv2RnNj

— Raoul Pal (@RaoulGMI) March 12, 2022

Bitcoin & Ethereum price 

According to Pal, if the network effect of Bitcoin remains continuous then the price of Bitcoin will touch $600,000 next next 8 years.

But, if a network continues to create network effects then the log regression channel is still an excellent way of forecasting the future…

Assuming BTC remains 1 standard deviation below trend it gives a price target of $600,000 pic.twitter.com/6UHA72AoDs

— Raoul Pal (@RaoulGMI) March 12, 2022

On Ethereum, he said that Ethereum is more bullish because of the huge use cases and probably it can flip the Market cap of Bitcoin. However, he noted that Bitcoin and Ethereum are different things and indirectly hinted that we should not compare both these two assets.

But ETH has more applications and the transaction value per monthly user is broadly in line with BTC. Thus, if ETH attracts more users over time, it will flippen BTC in market cap (not that it matters as we are comparing apples with oranges! Both have different value/uses). pic.twitter.com/81WduPnmgs

— Raoul Pal (@RaoulGMI) March 12, 2022

Read also: Dogecoin showing continuous downfall but bullish with seprate positive metric

Bitcoin may hit $600k in 2014 under normal situations, says Former Goldman Sachs officials

 

https://bitcoinik.com/bitcoin-may-hit-600k-in-2014-under-normal-situations-says-former-goldman-sachs-officials/feed/

https://bitcoinik.com/bitcoin-may-hit-600k-in-2014-under-normal-situations-says-former-goldman-sachs-officials/feed/

 

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