The bitcoin price could reach $100,000 in just a few years, according to bitcoin investor and Harvard academic Dennis Porto. The analyst has made a curious observation about the digital currency, which he revealed in recent comments to Business Insider.
After studying bitcoin’s price behaviour, Porto has concluded that since its creation the cryptocurrency has followed one of technology’s “golden rules” – Moore's law.
"Moore's law specifically applied to the number of transistors on a circuit but can be applied to any digital technology," Porto wrote in an email, as quoted Business Insider. "Any technology that is growing exponentially (i.e., 'following Moore's law') has a doubling time."
The famous rule, formulated in 1965 by Intel co-founder Gordon Moore, typically applies to a technology's computing power or capabilities. However, is the first time Porto has noticed a technology's price following Moore's law. According to him, since bitcoin’s creation its price has doubled every eight months.
“This poses a unique opportunity for investors: Whereas it was difficult to invest in circuits or internet speeds, it is easy to buy a bitcoin," Porto said.
The analyst believes that if the trend continues, the bitcoin price could surpass $100,000 by February 2021.
Other analysts have also made bold predictions about the future of the cryptocurrency. Last month Tom Lee, managing partner and head of research at Fundstrat Global Advisors, proposed a model for establishing valuation framework for bitcoin, based on the premise that the cryptocurrency could become a substitute for gold. Based on that model, Lee forecast that “bitcoin's value per unit could be $20,000 to $55,000 by 2022”
The bitcoin price has seen significant drop in today’s trading. As of 15:40 BST, the cryptocurrency was trading at $3,261.34, according to data from Coinmarketcap. It has fallen four percent over the past 24 hours.