Price of Bitcoin set to hit a bullish $1 million

The price of Bitcoin has jumped over the last few months, surpassing $50,000 this week. There are ongoing speculations that Bitcoin could hit a bullish $1 million over the long term, and could likely become a reserve currency for the world, an assets manager claimed.

Co-founder and partner at Morgan Creek Digital Assets, Anthony Pompliano said there was every possibility that the price of Bitcoin could hit $500,000 by 2029, and would eventually hit $1 million per coin.

“I think that bitcoin will eventually rise to become the global reserve currency. I think bitcoin will eventually be much larger than the gold market cap,” Pompliano told CNBC.

As Bitcoin continues to rally, JPMorgan Chase warns of the possible risks that could surface. Several factors are responsible for the ongoing bitcoin rally such as large participation from institutional and retail investors.

An increasing number of major companies like Tesla are also getting more involved with cryptocurrencies, particularly Bitcoin. Square was one of the first companies to embrace Bitcoin last year. Electric car maker Tesla’s boss Elon Musk also purchased $1.5 billion worth of Bitcoin last week and said Tesla would soon start accepting Bitcoin as a form of payment.

In the meantime, global central banks are tirelessly working to ensure that the impact of the coronavirus pandemic is reduced to the barest minimum. These central banks have been utilizing monetary policies such as lowering interest rates and buying assets through quantitative easing programs to help reduce the impact of the pandemic.

“There were trillions of dollars that were printed and injected into the economy and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was bitcoin,” Pompliano said.

As for Bitcoin, there is no central authority like a central bank that controls it. Instead, The Bitcoin network consists of independent miners who operate a wide array of computerized processes to carry out the mining process. This signifies that no single entity can take over the Bitcoin network.

“As more and more people come into the market, there is more liquidity. As there is more liquidity, there is more utility, there’s more stability in the price … you get kind of this evolution,” he said. “If you think about that internet economy, there is no native currency … (bitcoin) will eventually take that seat at the kingdom of being that global reserve currency of the internet generation.”

While more companies are starting to embrace cryptocurrency as the future, financial firms like JPMorgan are quite skeptical about Bitcoin. Although it has not stopped to theoretically follow up on the cryptocurrency. Its long-term price target on Bitcoin is $146,000 as the digital currency begins to compete with gold.

“Bitcoin is competing with traditional gold, bitcoin is a form of digital gold,” said Nikolaos Panigirtzgolou, global markets strategists at JPMorgan.

While JPMorgan acknowledges that Bitcoin holds huge benefits, it doesn’t fail to mention that there are pending risks ahead of the ongoing rally. “The biggest risk is that the flow of impulse we’ve seen over the past months slows materially from here.”

He mentioned that possible risk that could emerge when economies reopen and people return to their daily office lives, leaving little or no time to trade at home which would eventually slow down “impulse.”