There are multiple opinions in the media regarding the price of bitcoin. The price has had its ups and downs. However, the long-term dynamics explain why the price of bitcoin will rise. Many people believe that the price of bitcoin will rise astronomically, although there has been a recent dip. This is because of the theory that BTC is not a linear asset, but a logarithmic asset. There are a few reasons why bitcoin will reach at least $100,000 by 2022. These reasons include the introduction of Bakkt, the legal recognition of bitcoin as a valuable digital asset that can be used to purchase goods and services, and heavyweight crypto bulls. Most importantly, these heavyweight crypto bulls can influence media organizations and governments.
First Reason Why the price of bitcoin will rise: Bakkt is coming
The first reason we're going to address is the introduction of Bakkt. Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), is launching a new company, Bakkt. The Bakkt platform is expected to launch in January 2019 and will offer financial services to institutional investors.
Surprisingly, companies such as Starbucks, Microsoft and Boston Consulting Group (BCG) are joining Bakkt. It may even be hosted on the Microsoft cloud. In addition, there are discussions about Bakkt involving the introduction of crypto-currency into 401(k) accounts. Ultimately, Bakkt will be an exchange that follows U.S. regulations.
Bakkt CEO Kelly Loeffler compared the digital marketplace to the energy market in the early 2000s. Because of his long role as head of communications and marketing at ICE, Kelly could tell that ICE has attracted more institutions to trade energy. According to Kelly, this helped create today's liquid energy market. The current CEO of Bakkt says there will be a crypto revolution of the same magnitude.
Second reason the price of bitcoin will rise: Governments are taking over digital currencies
The second reason the price of bitcoin will rise to at least $100,000 by 2022 is that some governments have already begun to capitalize on BTC; at the very least, they have done so in the form of taxes and legal seizures. It turns out that many governments couldn't stop their people from using digital coins. Thus, nations began to impose taxes on the profits of digital assets; in addition, they began to seize digital assets as part of judicial sanctions. Cases are beginning to unfold in South Korea, the United States and even Israel.
South Korea
Many people were in shock after the recent decision by the South Korean Supreme Court. In May 2018, it ruled that bitcoin is legally a recognizable asset. Especially when it comes to judicial forfeitures. In one case, the Supreme Court overturned a lower court's decision not to confiscate a convict's bitcoins. In fact, the Supreme Court ruled that people who trade bitcoins on exchanges can use them to purchase property; thus, receiving bitcoins is an act of profit taking.
United States
Similarly, the U.S. Internal Revenue Service (IRS) has admitted that virtual currency has value. This value is equivalent to real currency in terms of purchasing power. Even more, the court reminded that individuals must report their digital currency earnings on their tax returns. In addition, U.S. states are beginning to take advantage of digital currency assets. Ohio became the first U.S. state to accept bitcoin for tax payments. Other states, including Arizona and Georgia, are considering doing so.
Israel
Even more, the Israeli tax authority has declared bitcoin a taxable asset. The tax agency has even gone on the hunt for bitcoin traders on social media, like Facebook and WhatsApp. Indeed, when a bitcoin is sold, the seller must pay a 25 percent capital gains tax; in addition, anyone considered by the authorities to be operating a bitcoin business must pay a 17 percent value-added tax.
Reason #3 why the price of bitcoin will rise: Crypto bulls are influencing the world's media and governments
The third reason why bitcoin will rise is that heavyweight "crypto bulls" are pushing for BTC values to rise. Among the "crypto bulls" are billionaire investor Tim Draper, PayPal, Tesla and SpaceX entrepreneur Elon Musk, and McAfee founder John McAfee. These businessmen have the power to influence the media and world governments.
Tim Draper
Tim Draper is a billionaire investor who famously stated that bitcoin would reach $250,000 by 2022. Many people know the famous venture capitalist for his proposal to divide California into several parts. Despite political obstacles, Tim managed to get his "Split California" proposal considered by the state Supreme Court. Of course, the political parties took his proposal off the ballot for further consideration; however, Draper must have made a number of connections in California government through this activity. What's more, he previously worked on the California State Board of Education in the 1990s, before founding Draper University in 2012. What's more, Draper isn't a new name in the media world. Worth magazine named him No. 98 on a list of the 100 most powerful people in finance. He also earned the No. 7 spot on Forbes' Midas list.
Elon Musk
Elon Musk is almost a household name. The entrepreneur of PayPal, Tesla and SpaceX has been in the news recently. Like Tim, Elon also has ties to the government. In fact, the South African, Canadian and American citizen knows Donald Trump, the current U.S. president. On October 22, 2018, Musk tweeted, "Want to buy bitcoin?". He spelled Bitcoin with a capital "B." And, we all know that everything Musk does, including attending secret meetings at the White House, ends up in the news.
John McAfee
John McAfee is another crypto bull. He is famous for saying that bitcoin will reach $1 million by 2020. Of course, this may seem like an extremely high number, but we know that McAfee is no ordinary man. This entrepreneur's company invented the McAfee antivirus. Then Intel bought out and renamed his company McAfee; it became Intel Security. Like the other names on this list, the media has also interviewed John McAfee on several occasions. More than that, as a political activist, McAfee ran for the Libertarian Party for President of the United States. He lost the election, but we're sure he has a number of contacts in American politics.
Think twice about using bitcoin
We could certainly cite other reasons why bitcoin will reach a price of at least $100,000 by 2022, but time and breath are running out. Remember, people used to reject the idea of crypto-currency; now they are thinking twice.